Amazon India shoppers are increasingly seeking premium products, particularly in the fashion and beauty segments—a growing trend that Amazon is keen to capitalise on this festive season.
“The rapport for premium products is steadily growing among our shoppers,” Zeba Khan, Director of Fashion, Beauty & Social Commerce category, said in an interview with YourStory. “The premium trend is particularly pronounced in watches, luggage, shoes, and beauty categories.”
Zeba noted that the focus on premium brands during events has led to over 45% year-on-year growth in these segments.
“We are observing growing demand for metallic automatics and ultra-thin watches, plush footwear (furry, fuzzy, and feathered textures) with kitten heels, and bracelet bags with decorative straps like chains and embellishments,” she added.
High-ticket items like gold jewellery, a category Amazon entered in 2014, have seen an 85% year-on-year growth this year. Zeba credits Amazon’s specialised supply chain for fostering the trust necessary for these categories to thrive.
“Since premium consumers shop differently from core consumers, we prioritize the discoverability and accessibility of premium brands for them, ensuring they are prominently featured and easy to find,” Zeba explained.
She also highlighted the recent launch of the Premium Store on Amazon Fashion, featuring over 650 premium brands, including Seiko, Mathey Tissot, Tommy Hilfiger, Guess, Swarovski, and Satya Paul.
Makeup and skincare are also rapidly moving toward premiumisation, with shoppers increasingly preferring clean beauty products. These products, unlike traditional ones, are marketed as free of harmful chemicals but usually come at a higher price. Zeba said that Amazon has also bolstered its offering of Korean skincare products owing to growing demand.
“We’ve also seen premiumization extend beyond brands, with consumers choosing higher-quality variants within the same brand,” Zeba added.
This year, Amazon is offering at least 50% off on premium watch brands like Fossil, Michael Kors, Armani, and Boss. Luxury fragrances from brands like Jaguar, Nautica, and Guess are discounted by a minimum of 40%.
This push for premiumisation comes at a time when Meesho, known for more affordable products compared to many other e-commerce platforms, has emerged as the the fastest-growing e-commerce platform in India, as per a Bernstein report.
However, Amazon remains mindful of the growing number of budget-conscious Gen Z shoppers, who, according to Zeba, account for 40-45% of purchases in Amazon’s Fashion and Beauty segment.
Last year, the company launched the Gen Next Store, a dedicated storefront for Gen Z shoppers with sections curated by trending fashion styles. This year, it plans to expand its selection of products popular among young shoppers, including sneakers, modern jewelry, and gender-neutral clothing.
“This festive season, you’ll also find ethnic clothing such as kurtas and lehengas at the lowest prices anywhere online,” Zeba said.
Amazon is also investing in faster last-mile deliveries to compete with brands like Nykaa, which offers six-hour and same-day delivery.
“We deliver over 1 million products on the same day and over 4 million the next day, and we are constantly working to make these deliveries faster,” Zeba added.
Amazon and its ecommerce rivals, including Flipkart and newcomer Meesho, are preparing for the upcoming festive season sales. These sales have a significant impact on ecommerce revenue in the country.
For example, during Big Billion Days 2023, Flipkart reported 1.4 billion customer visits, while Amazon saw 95 million visits in the first 48 hours of its festival.
