June 5, 2014: Amazon India is stepping out to the fashion retail store scene to directly compete with the Flipkart, who recently acquired Myntra. The company launched its online fashion retail store yesterday. The store, Denim Hangout for Men would feature top selling fashion wear for men, they had already launched a store selling ethnic wear for women online in April 2014. Online fashion retail business segment is one of the most lucrative online retailing segment due to the increase in demand as well as huge margin available to the players.
Men can find a wide collection of T-shirts, Shirts and Jeans in this newly launched Amazon India fashion store. Flipkart currently enjoys more than 50% market share in online fashion retail segment with the acquisition of Myntra. Amazon India hopes to make a dent in this and increase their market share by launching more stores selling fashion wear for targeted segments. Their move to open separate online stores for men and women seems to part of their differentiation strategy of having more stores for each target segment rather than having one for all kind of online store. The third player in the race is the joint venture of eBay and Snapdeal.
Amazon India has also made sure that they have attractive 30 days no questions asked return policy too as part of promoting their stores.