Why Amazon is failing to sell luxury fashion but Alibaba is succeeding

Amazon has been trying to crack the fashion luxury business for years, while Alibaba’s Tmall has become the go-to for luxury brands in China

Amazon has been trying to up its sexiness factor, with some of fashion’s biggest names including Rihanna and Bella Hadid appearing on Amazon Prime Video

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Jeff Bezos (centre left) and Anna Wintour (centre right) at a Tom Ford runway show in February 2020. Amazon founder Bezos is trying to crack the fashion luxury business. Photo: Getty Images

Published: 10:15am, 4 Dec 2020Updated: 4:03pm, 4 Dec 2020

Amazon has been selling clothing for years. The giant e-commerce company ran its first fashion advert in 2012, and there was even a moment in 2018 when a padded Amazon own-brand coat went viral, with editors and celebrities spotted wearing it on the streets of Manhattan in New York.

Traditionally, though, Amazon clothing has been more “brandless fleece coat” than “embellished high-fashion catwalk” – meaning that, almost uniquely among retail sectors, luxury has been largely untouched by the online giant.

Not for much longer – according to Amazon, anyway. In the US last month, the mega platform launched its latest bid for the luxury market with a glossy new designer section where brands can create their own digital online boutiques without worrying that their wares will be advertised alongside phone chargers and dog food.

With its individual storefronts and action model shots, it is clearly based on Alibaba and its Tmall luxury site – one of the fastest-growing fashion e-commerce platforms on Earth (Alibaba owns the South China Morning Post ).

A guest trying out virtual make-up supported by Tmall’s Luxury Pavilion. Photo: Bruce Qian

There is no doubt that Amazon has China in its sights – the country is now by far the most lucrative luxury market in the world. But while it has some luxury labels on board, Amazon has failed to woo prestigious European brands.