Since the turn of the millennium, Amazon (AMZN) and eBay (EBAY) have been joined by several players in the e-commerce industry. EBay was the first to launch in 1995 while Amazon followed shortly in 1996. Both companies had different ideologies about the market, but now, there is little to separate the two in terms of the target market.

While the two may carry the tag-name pioneers of the ecommerce marketplace, serious questions are now being asked with regard to their ability to continue dominating the industry. Companies like Wal-Mart (WMT), Target (TGT), and BestBuy (BBY) are now trying to stake their claims despite entering the space late while in China; Alibaba (BABA) has launched a realistic challenge towards becoming the world's market leader in e-commerce.

Clothing and Apparel is one of the most dominant business segments in the e-commerce industry. It is a market that has attracted several players especially due to the high level of fragmentation.

startups are now able to target specific business segments of the e-commerce industry and this is proving to be a key ingredient for success. Some good examples include StyleWe, Swap.com, and Jabong, which have identified specific market segments to target including women clothing and sportswear, used clothing and apparel, and kids clothing, among others.

Specialization has enabled them to gain traction in the highly competitive industry of clothing and apparel. For instance, women are known to be shopaholics and this is probably why new market entrants such as StyleWe are viewing the segment as a strategic target if they can provide something unique to customers.

Another interesting revelation has been the way the clothing and apparel market has been shaping up. Traditionally, markets are known to expand globally, such that if a company sets up in New York, its next target market would be national expansion and then regional expansion in the Americas before finally stretching its wings to overseas markets.