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Business News/ Companies / Amazon starts selling apparel on its India e-commerce platform
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Amazon starts selling apparel on its India e-commerce platform

US-based firm's entry into apparel and accessories will increase competition for category leaders Myntra and Jabong, and Flipkart and Snapdeal

Amazon operates an online marketplace in the country as India doesn’t allow foreign direct investment in e-commerce. Photo: ReutersPremium
Amazon operates an online marketplace in the country as India doesn’t allow foreign direct investment in e-commerce. Photo: Reuters

Bangalore: Amazon Seller Services Pvt. Ltd, the world’s largest online retailer, said it has started selling apparel on its India website—entering a fast-growing and higher margin category in e-commerce. Amazon will sell ethnic women wear from more than 90 brands and also offer sunglasses for men, women and children.

“With a vast selection of fashion jewellery, watches, beauty products, handbags, clutches, shoes and now ethnic wear and sunglasses, Amazon.in offers a compelling fashion and lifestyle shopping destination for women," Amazon said in a statement.

The US-based firm launched its marketplace platform in India last June by selling books and video content. Since then it has expanded its product offering to electronics, toys, music and other consumer goods. Amazon operates an online marketplace in the country as India doesn’t allow foreign direct investment in e-commerce.

The company’s entry into apparel and accessories will increase competition for the likes of Myntra and Jabong, the top firms in the category. India’s largest e-commerce firm Flipkart and rival Snapdeal have also been trying to build their apparel business.

Apparel and accessories offer higher margins to online retailers compared with books and electronics, where there’s less or no room to set high prices, analysts say.

Amazon’s entry is likely to put further pressure on Myntra and others to maintain or increase the already high discounts as the US-based company generally offers the lowest prices for any product it sells.

All the top four ecommerce firms—Flipkart, Snapdeal, Myntra and Jabong—have raised between $50 million and $360 million in the past year, adding enough firepower to aggressively advertise their brands and chase customers with discounts and promotions.

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Published: 24 Apr 2014, 08:46 PM IST
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