Most businesses aren’t happy with losing millions of dollars a year but Amazon is happy to as long as it keeps their shoppers happy, and returning to shop some more. Doing damage to the publishing industry and making the toy industry jumpy Amazon is taking on high-end clothing and is going big and sparing no expense. Mr. Bezos said in an interview that the company was making a “significant” investment in fashion to convince top brands that it wanted to work with them, not against them.
The traditional retail world and many major brands that want no part of Amazon — are gearing up to fight for their lives. Since Amazon sets prices and charge whatever they want this maybe a huge threat for designer brands. Mr. Bezos says the company’s new effort is not about selling clothes at deep discounts but at prices that ensure that “the designer brands are happy.” Until now, fashion has been one of the few categories that Amazon has tried to dominate without success. In addition to its own site, Amazon bought the shoe site Zappos.com for more than $1 billion in 2009, started the shoe site Endless.com and MyHabit, and bought the boutique Shopbop in 2006.
In the retail-clothing world, fears are growing that few will be able to compete with a stepped-up Amazon.