On 21 May, Amazon has launched an online clothing section in Spain, in an attempt to quickly conquer a large part of the fashion market there, after its arrival in 2011.
Inditex is largest competitor
Amazon's clothing section has 700,000 items from 2,000 different brands and is the company's attempt to capture a part of the Spanish online fashion market (worth 300 million euro on a yearly basis). The biggest competitors are Inditex (known from Zara among others) and Privalia, both of which had 82 million euro in sales last year. Amazon's arrival could perturb the market quite severely.
Since its launch in Spain, Amazon has grown considerably and already has 6 million customers and has a huge logistic advantage over its competitors. For example, it has a 3,000 sqm distribution center in Madrid and deals in place with more than 1,200 retailers, which means that consumers can pick up their orders at plenty of locations.
Shopping experience counts
"Spain right now is a very interesting market for online fashion retailing. Spaniards are no longer afraid of buying online, and there is huge potential. [...] Amazon's success will depend more on the shopping experience than on the range of its products. [...] The ease with which people can return goods or the speed with which they receive them is what will allow Amazon to differentiate itself", Diego Galván (of GBS Finanzas) told Spanish newspaper El Pais.