Amazon (NASDAQ:AMZN) has kicked off a special summer sales event called the “Big Style Sale.” Usually, the company holds an annual summer sale called “Prime Day.” However, COVID-19 forced Amazon to push back its Prime Day event from July to September.
Amazon’s Prime Day offers sales across most of its product categories. Meanwhile, the Big Style Sale event is limited to fashion.
Amazon’s fashion sales event kicked off on June 22. The event could last for up to ten days. In contrast, the Prime Day event runs for two days. The fashion brands participating in the Big Style Sale event include Cole Haan, Levi’s, Adidas, and Skechers. Amazon’s own fashion labels are also participating. The discounts are up to 50%.
Amazon’s Big Style Sale seeks to stimulate fashion sales
At the height of the COVID-19 outbreak in the first quarter, Amazon tweaked how it runs its e-commerce business. Specifically, the company prioritized selling household and medical essentials to support the efforts to combat the disease. However, prioritizing the sale of household and medical essentials sidelined vendors of non-essentials like apparel. The Big Style Sale event should stimulate non-essential product sales in the fashion category.
Also, the Big Style Sale should help Amazon grow its share of the lucrative fashion market. In the US, the fashion market is estimated at $390 billion annually. Most of the fashion item purchases still take place offline. Although Amazon doesn’t report its fashion sales, eMarketer estimates that its fashion sales reached about $36 billion in 2019. Amazon had about a 30% share of the nearly $122 billion online fashion sales market in the US.
Notably, Amazon has been steadily growing its share of the US fashion market. For example, the company’s share of US online fashion sales stood was 22.7% in 2016 and rose to 25.5% in 2017. Then, the share rose to 27.8% in 2018 and 29.6% in 2019.
Amazon’s Big Style Sale event could strike the right chord with many shoppers amid COVID-19. As the pandemic has reduced many households’ income. People will likely jump on an opportunity to save a few dollars on fashion purchases.
Investing in Amazon stock
The Big Style Sale event comes as a time when Amazon has seen a surge in shopping on its platform due to the pandemic. Investors have piled into Amazon stock. The pandemic turned out to be a huge business boom for Amazon. At $2,713.82 per share at the closing on June 22, Amazon stock has gained 47% year-to-date.