Join

Enter Details

Comment on stories, receive email newsletters & alerts.

@
This is your permanent identity for Business Insider Australia
Your email must be valid for account activation
Minimum of 8 standard keyboard characters

Subscribe

Email newsletters but will contain a brief summary of our top stories and news alerts.

Forgotten Password

Enter Details


Back to log in

Amazon and Calvin Klein are teaming up for a store of the future -- and it could be a 'watershed moment' for clothing brands

Calvin KleinFacebook/Calvin KleinCalvin Klein is in the midst of a multi-year turnaround — with the help of celebrity endorsements.
  • Amazon is partnering with fashion brand Calvin Klein on holiday pop-ups.
  • It includes exclusive product not sold elsewhere, as well as Amazon Echo devices in dressing rooms.
  • In a note to investors, Goldman Sachs called the partnership a “watershed moment.”

Amazon’s vision for the future is coming into focus — and it involves underwear.

The company is partnering with Calvin Klein on pop-up stores for the holiday, the Wall Street Journal reported on Thursday. The new stores are set to be unlike anything else they have launched, with exclusive, Amazon-only underwear and Amazon Echos that can answer questions about the products, change the lighting, and play music in dressing rooms.

Customers can also make purchases through the Amazon mobile app and request embroidery customisation on the spot. There will be one store in New York City and one store in Los Angeles, and both will be open from Thursday until December 31.

The move deepens the relationship between Amazon and Calvin Klein parent company PVH. Clothing is one of the fastest-growing categories on Amazon.com, where the exclusive underwear sold at the pop-up will also be offered.

Department stores, traditionally the most important outlet for Calvin Klein underwear, will not get access to the product until January, after the holiday.

In a note to investors, Goldman Sachs said that the partnership pop-ups might be a “watershed moment” for brands. Goldman Sachs analysts wrote that the “store of the future style features,” like the Echo functionality and app payment system, could be a “fresh catalyst” for more brands to enter into agreements with Amazon and trust the company with their reputations.

Amazon Australia’s first fulfilment centre in Dandenong South, Melbourne. Photo: Quinn Rooney/ Getty Images.

The move comes as Amazon prepares for its entry into Australia, expected to be before Christmas.

Some industry analysts have predicted it will start trading as early as November 24 — a big sales day known in the US as Black Friday.

This week hundreds of merchants gathered in Sydney to hear from the company’s Australia manager, Rocco Braeuniger, and head of seller services for Australia, Fabio Bertola, on how the whole platform will work.

Under the local model, Australian retailers will pay $49.95 plus GST each month to sell on Amazon, plus 6% to 15% of each item sold.

NOW MORE: Amazon Australia now has computers, monitors, and more listed on its website

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.