AMAZON ACCELERATES THE ECOMMERCE RACE - LUXURY FASHION - SUSTAINABILITY AND PRINT ON DEMAND

“Amazons investment further exemplifies a seismic shift for the future of textile production. Choosing Kornit Digital as their technology partner, understandable, as Kornit’s technical innovations continue to disrupt the textile industry. Kornit seek to increase their annual sales to $500 million by 2023”.

Ronen Samuel, the CEO of Kornit, observed “Kornit is a business on fire – fashion companies are moving online and to textile printing on demand.” - RONEN SAMUEL

It’s been quite a week for Amazon as it accelerates its commitment to online luxury fashion, sustainability and a massive $400 million investment pledge with Kornit Digital technologies as it tools up for merchandise on demand.

The march to customised merchandise and Print on Demand just took another leap forward.

First came the launch of its new luxury stores, where Amazon Prime customers can buy a wide range of top luxury fashion labels. In addition to Oscar de la Renta, its luxury stores now also feature iconic fashion houses - Roland Mouret and La Perla.

Amazon will continue to launch stores with more well-known designers and some up-and-coming brands in the near future – the luxury marketplace has previously resisted an online presence. Amazon has a new ecommerce strategy for couture online fashion brands. It has invested in new technology and intelligent algorithms to deliver enhanced customer engagement, all of which will meet the luxury consumers expectations and move to redefine the sector.  

Amazon’s fashion offering comes equipped with its ‘view in 360’ feature where customers can view products in a full 360-degree panoramic view that allows best-fit and colour to be reliably achieved online, with the usual safety net of 30 day return with full refund backing up the offer. The Luxury sector offers the Amazon behemoth substantial revenue opportunities.

Driving the sustainable agenda to new heights - Amazon’s new Sustainable labelling initiative is set to revolutionise how we evaluate our purchases.

Amazon wants its customers to know which products are sustainable and has started to introduce its ‘Climate Pledge Friendly’ label on more than 25,000 products, as it tries to help customer make sustainable and eco-friendly purchasing decisions.

As well as sustainability information labelled on a wide range of products in household, fashion, beauty and electronic products, Amazon has also opened a dedicated section on its store that will feature ‘Climate Pledge Friendly’ items.

The ‘Climate Pledge Friendly initiative’ supports Amazon’s commitment to reach the Paris Agreement ten years early and be net zero carbon by 2040.

The company has already committed to reaching 100% renewable energy by 2025, ordered over 100,000 fully electric delivery vehicles, and plans to invest $100 million in reforestation projects around the world. Amazon also launched the Climate Pledge Fund, a $2 billion fund to back visionary companies whose products and services will facilitate the transition to a low carbon economy.

Building on these actions, Amazon will now make it easier for customers to access product choices that align with their commitment to a more sustainable future

Jeff Bezos, Amazon Founder and CEO, said: “Climate Pledge Friendly is a simple way for customers to discover more sustainable products that help preserve the natural world. With 18 external certification programmes, we’re incentivising selling partners to create sustainable products that help protect the planet for future generations.”

Adding further substance to its luxury and sustainable aspirations, Amazon has signed a $400 million agreement to buy Kornit Digital printing machines and eco-friendly inks.

Well known throughout the world for their on demand digital printers, Kornit Digital also lead the way in using water & energy saving ink systems. With their Neo-Pigment inks meeting top world wide standards, such as Oeko Tex 100, Global Organic Textiles (GOTS 3V) and the AATCC (American Association of Textile Chemists and Colourists), Kornit Digital have been pathfinders as the Textile Industry moves inexorably towards dealing with its environmental footprint.

Expanding on the machines already installed, Merch by Amazon have proved the success of their profit-sharing on demand production model.

Disney, for example, reports that it has expanded all of its product line sales on the platform, including huge names like Star Wars, Pixel, and Marvel. Reporting a surge in demand, Disney also reports that Amazon's on-demand print service has also allowed them to offer items online that would not be viable, due to low-stock turn in physical retail outlets.

Equally, Dr Seuss Enterprises, the owners of Cat the Hat and The Grinch, have reportedly increased sales of T-Shirts and Hoodies by 40% since hooking up with Merch by Amazon.

All in all, the success of the alliance between Merch by Amazon and Kornit Digital has been exemplary, and it is upon this success that the two companies now want to move forward together.

Amazon has agreed to buy $250 million of Kornit Digital Printers and Inks over the next five years, with $150 million being reserved for ‘future products’ yet to be announced.

The deal totals $400 million.

Amazon intends to use this new digital textile printing equipment to expand into sportswear, textiles, and housewares with products such as throws and tableware - signposting the future growth of print on demand.

So, with the Global  Digital Textile Print market predicted to expand from $2.6 billion to $8.8 billion by 2027 (Allied Market Research) and with the Digital Ink Market set to grow to $2.66 billion in the same period (Allied Market Research), Amazons investment further exemplifies a seismic shift for the future of textile production. Choosing Kornit Digital as their technology partner, understandable, as Kornit’s technical innovations continue to disrupt the textile industry. Kornit seek to increase their annual sales to $500 million by 2023.

No wonder, that as the company signed an expanded agreement with Amazon that will triple its sales to the online retail giant. Ronen Samuel, the CEO of Kornit, observed “Kornit is a business on fire – fashion companies are moving online and to textile printing on demand.”