Even if this product isn't a massive success, the units they do move will have a huge potential impact to their retail clothing lines.
Now, instead of suggesting clothing items in the store based on other items you've looked at, they can now suggest clothing items in their sales material based on what you already own and look good wearing.
If I had this product and Amazon started sending me curated outfits that they knew would look great on me and matched my style, I'd probably start using Amazon exclusively to fill out my wardrobe.
As it stands now, I buy almost everything EXCEPT clothes through Amazon and prefer to let my wife buy me things she wants me to wear.
This product, on it's own, is a game changer in the fashion industry. Now Amazon has a compelling and unique product that is going to make it increasingly difficult for other retail outlets to compete in the same space.
And once we start seeing "apps" for this camera that auto-instagram/snapchat your pictures, I think we're going to see a huge demand in the teen/millennial female market for what is kind of a geeky niche product.