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But its dominance is being challenged, with retailers expanding their e-commerce offerings and big names such as Amazon and SoftBank Group Corp eyeing a piece of the growing business. At stake is a $120 billion fashion market that was almost entirely dominated by brick-and-mortar stores until a few years ago, but is transforming amid the proliferation of smartphones and home delivery. Online fashion sales have grown to over 10 percent of the total Japanese market in the past few years - with Zozotown at the head of the pack - and are likely to surpass 20 percent in three years, according to Nomura Securities. “There needs to be a second player, and we are putting up our hand,” said Yusuke Tanaka, founder and chief executive of fashion website Locondo Inc. To differentiate itself, Locondo specializes in shoes and, unlike Zozotown, offers free returns - still a rarity in Japan. It also shares inventory with fashion site Magaseek. For now, Zozotown is “totally sweeping the board,” said Yuki Ando, general manager of web business at Sanyo Shokai Ltd, the fashion company behind lines such as Mackintosh Philosophy. Zozotown is operated by Zozo, officially called Start Today Co Ltd. The website set itself apart in its early days with a clean, uncluttered design and a slice of “Ura-Hara” style - the modish fashion of the backstreets that line the trend-setting Harajuku district of Tokyo. Business took off as fashion-conscious professionals in their late twenties and early thirties started using Zozotown to buy trendy but work-appropriate threads online from labels such as United Arrows and Nano Universe. Its target is now broader, selling over 6,800 brands including, starting next week, clothes by Shimamura Co Ltd, one of Japan’s largest mass market chains.
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