Microeconomics discussion
caohywpySource: Suzanne Kapner, ”Amazon’s Fashion Secret: Full Price”, April 7, 2016, the Wall Street Journal (Eastern Edition).
According to the article, ”Amazon’s Fashion Secret: Full Price”, Amazon used to compete against its rivals by offering lower prices for all the items. However, recently it started selling high-end brands of apparel online without lowering prices. In fact, Amazon had higher average prices than its rivals, such as Macy’s and Kohl’s, while it captured ‘43% of overall online sales in November and December’. And Amazon’s U.S. apparel business expects to rapidly expand in the near future. What are key factors for Amazon’s success in the U.S. apparel business? Do you think this trend will continue? Why or why not? Briefly discuss.
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