Amazon.com, Inc. (NASDAQ:AMZN) is planning to take on a revolutionary approach towards the fashion industry since fashion brands are not as popular on its site. This time, the company plans to acquire the fashion brands and it has its eyes on Everlane.
The company has been looking to make acquisitions in the enterprise industry, pickup services, hardware, faster delivery and media streaming. Fashion has not been at the center of the firm for quite some time, but Amazon is determined to change that through an acquisition in the sector. Sources claim that the company has targeted various fashion companies as potential candidates for an acquisition to strengthen its presence in fashion.
Preeline, Everlane, Third Love, Rent the Runway and Le Tote are the fashion firms that made the cut as potential acquisitions for Amazon. Amazon has not made any comments with regards to the acquisition and the shortlisted firms have also turned down probes about the matter. Amazon has always hoped that its online sales would attract fashion, but the high-end fashion firms do not share the similar sentiments. This is because they are not willing to sell at discounts.
The Wall Street Journal, however, reported at the beginning of the month that the presence of high-profile brands on the site has been on the rise. Some of the high-profile brands present on the site last year include Lacoste, Kate Spade, and Calvin Klein. The brands have been selling their products on Amazon at full price. The shortlisted firms have a unique appeal to Amazon because of their business models. Rent the Runway and Le Tote rent out their clothes, Preeline has a platform where consumers interact while Third Love and Everlane sell products that they have designed and manufactured.
Amazon believes that acquiring a third-party brand will help in creating its private label. The company also hopes that the strategy will help to eliminate the unsexy image created by the discounted prices of products at the site, and this is part of the reason why it has previously been unable to attract high-end fashion firms.