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2 个月前
BUZZ-Online fashion: bruising week after Amazon flexes muscles
2017年6月23日 / 下午2点10分 / 2 个月前

BUZZ-Online fashion: bruising week after Amazon flexes muscles

** Rough week for online fashion retailers after Amazon unveiled plans to launch its low-on-hassle, high-on-incentives shopping service, Prime Wardrobe (PW)

** JD Sports Fashion -10.5% from pre-PW launch, with Zalando -c8%, ASOS -c6% and Boohoo -5.6%

** Extra mile: Many online retailers do free returns, but Prime Wardrobe lets people try on clothes, shoes & accessories before actually buying and offers higher discounts for larger number of items

** Allianz Global Investors' Matthew Hall calls this one of more serious competitive threats to have faced a company like ASOS (AllianzGI ASOS shareholder)

** "Even though it's got own branded products and loyal following, this is a concern," Hall says, referring to ASOS

** Part catalyst for JD Sports big decline: lack of own brands, per PM

** Credit Suisse says biggest danger from Amazon Fashion to European e-commerce is not so much that it acts as a direct competitor, but that it continually resets consumer expectations for service levels

** CS sees PW (if launches in Europe) in that light

** In June 21 note, Morgan Stanley says PW discount (for purchases of >3 items, customers will get 10% discount & purchases of >5 items a 20% discount) as the potentially more damaging part of the news for Zalando

** It could lead to higher value customers shifting wallet share to Amazon on the expectation of discounts, per broker

** Debenhams and Next down 3% since before PW news broke (RM: tricia.wright1.thomsonreuters.com@reuters.net)

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