By Doug Stephens<\/p>\n

Internet retail behemoth Amazon has turned a dangerous eye toward the luxury apparel<\/a><\/strong> market.\u00a0 Long regarded as more of a clearinghouse for commodity items, Bezos and company have announced their intent to conquer (or at least take a sizeable chunk out of) high-end fashion. \u00a0Despite throwing heaps of money into the initiative, some analysts question the fit for Amazon in the luxury category.<\/a><\/p>\n

However, Amazon is a little like a Great White shark.\u00a0 It doesn\u2019t really matter whether they\u2019re hungry or not, when they come close, the smaller fish get worried\u2026 and with good reason.\u00a0 Amazon has developed a knack for disrupting category after category, seemingly without breaking a sweat.\u00a0 So, whether Amazon can actually become a respected purveyor of brands like Michael Kors, Jack Spade or Tracy Reese is really beside the point.\u00a0 The mere fact that they want into this market is reason enough for concern and it\u2019s chains like Bloomingdales and Macy\u2019s that stand to take the worst beating.<\/p>\n

The question for everyone else is what to do.\u00a0 How should competitors react when Amazon threatens?<\/p>\n

Unfortunately the natural tendency of most is to compete<\/em>. Basically to do what the other guy does but just a little better.\u00a0 To that end, I imagine we\u2019ll see some predictable reactions – faster shipping, free returns, sharper pricing, wider selections etc., all aimed at becoming a little more like Amazon<\/em>. \u00a0This is a colossal mistake.<\/p>\n

Competition<\/em> is precisely the deep, dark water that Amazon looks to drag companies into.\u00a0 They know others can\u2019t compete on their terms, so they let them flail and tread water until they can quietly drag them under.<\/p>\n

The key, I think, lies in understanding why <\/em>Amazon is attacking you or your category in the first place.\u00a0 \u00a0In most cases it\u2019s because they see the incumbents in a particular market as being mediocre or lazy.\u00a0 They\u2019re radar for detecting an underserved market is unparalleled.<\/p>\n

Best Buy is a good example.\u00a0 In a pre-internet world, Best Buy was remarkable.\u00a0 Few people had ever seen so many electronics products under one roof.\u00a0 However, as it became clear that e-commerce could spell trouble for them, they did little to react.\u00a0 Their stores and online properties remained static and their service levels mediocre at best. \u00a0\u00a0The death knell sounded when their own customers began buying things from Amazon<\/a><\/strong> while standing in a Best Buy store.\u00a0 And now at this late stage, there\u2019s little Best Buy can do but try to become\u00a0a little more like Amazon<\/em> \u2013 exactly what Amazon wants.<\/p>\n

Stop Competing, Start Differentiating<\/strong><\/p>\n

Former heavyweight champ, Mike Tyson is credited with saying\u00a0\u00a0 \u201cEverybody has a plan until they get punched in the face.\u201d The luxury retail apparel market may have just gotten punched in the face.\u00a0 The worst thing they can do is go toe to toe.<\/p>\n

For luxury apparel retailers, survival lies not in competition<\/em> with Amazon but rather in diametric opposition<\/em> to Amazon.\u00a0 Changing the rules of the game. Setting an entirely new standard for the luxury apparel experience and in doing so, shifting consumer expectations.\u00a0 Moving into market space that\u2019s simply too deep and narrow for Amazon to squeeze their war machine into.\u00a0 Creating new terms of reference for consumers and avoiding any direct comparison to Amazon. The more competitive distance they can place between themselves and Amazon, the safer they\u2019ll be – at least until Amazon moves again. \u00a0And they will most certainly move again.<\/p>\n

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By Doug Stephens Internet retail behemoth Amazon has turned a dangerous eye toward the luxury apparel market.\u00a0 Long regarded as more of a clearinghouse for commodity [\u2026]<\/span><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[191,135,221,183,222,140,118],"class_list":["post-1699","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-amazon","tag-apparel","tag-bloomingdales","tag-e-commerce","tag-fashion","tag-macys","tag-retail-prophet"],"yoast_head":"\n