Amazon.com, Inc. (NASDAQ:AMZN) is quickly taking the path of dominance in the apparel and pharmacy markets. According to Instinet analysts led by Simeon Siegel, the largest apparel retailer is likely to top up its apparel sales boom between $45 billion and $85 billion by 2020.
In 2016, Amazon’s global apparel sales were between $18 billion and $36 billion. This well between the level of Wal-Mart and Macy, which sold $25 billion and $22 billion respectively.
Amazon’s new tie-ups
The e-commerce and cloud computing giant continues to add partnerships in its apparel segment in an effort to take a bigger market share. Its latest acquisition was that of the natural food grocer Whole Foods Market at a cost of $13.7 billion. The new acquirement occasioned strong sales of its branded hardware at Whole Foods locations.
As if this is not enough, Amazon has also inked a deal with the world’s largest sportswear company Nike Inc. (NYSE:NKE), which is one of the most valuable brands in the world. At the same time, its relationship with Wells Fargo & Co (NYSE:WFC) is deepening by the day.
According to Siegel, Amazon has become a topic of discussion in every boardroom of retailers, brands, health care providers and servicer deliveries.
He stated, “We believe Amazon has the largest [total available market] TAM (ever), …………… can stock a limitless number of goods on its virtual shelf and knows customers better than they do”.
There is plenty of room for Amazon’s growth
One of the most notable things about Amazon is the creation of convenience and competitive pricing. It is now having a push into fashion and as it is now, it is one of the only retailers, which does not have some sort of socioeconomic stigma.
On the other hand, it is not only capitalizing on taking the market share from other retailers but also on expanding it. The company’s apparel business has a future, which gives Amazon’s private label group room for growth. Nonetheless, it continues to try on a number of strategies to see what sticks. Meanwhile, Instinet maintains that the e-commerce giant is increasingly becoming a universal appeal.