Amazon launches 'Bazaar,' a budget-friendly fashion store in India
What's the story
Amazon has discreetly launched a new store named "Bazaar" in India, aiming to cater to the demand for affordable yet stylish fashion and lifestyle products. This strategic move is seen as Amazon's attempt to compete with Flipkart and Reliance Ajio, both of which have established a significant presence in the Indian fast-fashion market. Bazaar is currently accessible through Amazon India's Android app.
Product range
Bazaar offers wide range of affordable products
Since February, Amazon has been onboarding sellers for Bazaar, promising benefits such as seamless delivery, no referral fees, and also access to a wide customer base. According to the company's support page, Bazaar offers an extensive range of products including apparel, accessories, jewelry, footwear, and both traditional and western outfits. The store also features home essentials including kitchenware, bed linens, towels, and decorative items.
Market shift
Amazon's response to changing Indian market trends
The rise in demand for budget-friendly fast-fashion is transforming shopping trends on various Indian apps. Bernstein, a brokerage firm, emphasized the need for Amazon's strong presence in this segment, where it has previously faced challenges in India. Analysts noted last month that "India's e-commerce category mix is changing; Mobiles and Consumer electronics share is declining. Fashion has seen the strongest growth since FY19 and now holds the highest category share."
Market dynamics
Investment and competition
Bazaar offers a variety of products including "trendy" t-shirts starting at ₹129 and sneakers priced under ₹250. These affordable prices will entice customers to place orders from the store. India remains a crucial international market for Amazon, that has already invested over $11 billion in the country. Despite leading the market with its cloud service AWS, Amazon's e-commerce sector lags behind Flipkart in India.
Scenario
Amazon allocated $2 billion for its e-commerce division
In 2021, Amazon CEO Andy Jassy revealed plans to invest $12.7 billion into AWS here by 2030, while allocating over $2 billion for the e-commerce division during the same period. The fast-fashion e-commerce sector in India has seen significant growth recently, with local start-ups following global leaders like Zara, H&M, and Uniqlo. Flipkart currently leads this category but is facing stiff competition from Reliance's Ajio, which has successfully captured around 30% market share within a year, according to Bernstein.