After Google’s online apparel site viz Boutiques.com, eBay Inc. now buying Brands4friends, a Germany-based e-commerce operator that focuses on fashion and lifestyle items. eBay has signed an agreement to pay about $200 million for the site.
Now it seems like apparel is one category that is generating interest of retailers. eBay in its own research says that online shopping clubs account for approximately 20% of online fashion sales in Europe.
The acquisition also will give eBay the stakes now held by brands4friends in British online shopping club SecretSales.com and the Japanese version of the German site, brands4friends.jp. The online marketplace expects to close the deal in the first quarter of 2011.
The purchase will strengthen eBay’s apparel business in Europe, says Colin Sebastian, an analyst for Lazard Capital Markets. eBay already generates more than $5.4 billion annually in volume from clothing, shoes and accessories, and views the category as an important growth driver.
If apparel is becoming a success story in Europe & US, soon it will conquer hurdles in nation like India where e commerce is growing rapidly. Convenience will soon be bigger than ‘touch & feel’ factor in India.
Nikhil Kunwar
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