The entry of fashion houses into online retail means a reduction in brick-and-mortar stores in local markets. With fewer stores in a given local market, it means there is reduced market rivalry amongst those remaining stores providing ready wear services.
Entry into online retail by fashion houses may make such houses lose their market shares, especially if such houses have poorly furnished web sites with a less range of products as compared to the well-established ones with many varieties of products since people tend to shop where there is a higher range of products. This may smother such houses out of the market and thus reduce market competition among the remaining established houses.