Jeff Bezos
When Amazon announced they it would sponsor this year's Met Gala, it became instantly clear that the company has its sights set on exploring fashion projects further. The online giant, which already owns e-commerce companies like ShopBop and Zappos, has confirmed that they will be working with a lot more high end brands in future. The Times reports:
Amazon's decision to go after high fashion is about plain economics. Because Amazon's costs are about the same whether it is shipping a $10 book or a $1,000 skirt, "gross profit dollars per unit will be much higher on a fashion item," [CEO Jeff Bezos] said, and it already makes money on fashion. While its MyHabit site, started last year, uses a flash-sale model to compete with Gilt Groupe, Mr. Bezos says the company's new effort is not about selling clothes at deep discounts but at prices that ensure that "the designer brands are happy."
I'm not quite sure how that is going to work. The main reason that people go to Amazon is for the unbeatably low prices so how Bezos plans not to alienate these customers with the changes will be interesting to see.
