If it doesn’t already seem like Amazon will rule the world, they also have another desire to pursue a new target market. Amazon has been trying to expand their store to include luxury brands, but have not had success yet. In order to reach this market, Amazon wants to explore their idea of creating their own luxury brand to sell. This brand would be mass-customized and is designed to create a smoother customer order process. Their brand would be comparable to the brand Indochino. Their idea would be to not compete with the high-end luxury brand, as that market is very lucrative, but dive into the mid-level luxury line. Competing with these mid-level brands, such as Hugo Boss, Brooks Brothers, and Burberry, attracts a larger target market and could cause customers to consider a cheaper alternative to the somewhat price sensitive market. Amazon already has a huge customer audience with Amazon Prime, so adding this new feature will be seen by a large population and accepted by many Prime members. Amazon aspires to create comparable quality, while adding a custom-fit option and lower prices. Amazon’s customer service and unbeatable manufacturing and shipping methods are attractive features of the company. Some articles also suggest that Amazon might buy Indochino and use their technology. Maybe to combine it with their own to optimize custom fitting models with the goal being to expand into women’s clothing as well.
Although the luxury market is pretty tough to join and create a solid presence in, Amazon has a unique angle that can really make an impact on the market. Amazon already has an established brand and many long-term relationships with customers. If Amazon can come in and execute a successful marketing program, they can create a big competitive advantage over the competition. Their ability to manufacture, process quickly, and ship materials is one of the best in the world. Combining forces with Indochino and continuing to develop their measurement and fitting technology can compete with the top custom fit luxury brands at about the same quality, but less expensive and less production time. With their already generous return policies, Amazon can create another divide between them and the competition. A big attraction from Prime users would be the accessibility since they already use Amazon frequently. Conversely, Amazon can use people’s search history to create suggestions and personalized options, giving more reason to choose Amazon over other companies. All of these exclusive Amazon features will create solid customer value and differentiate themselves from the competitors.