Amazon has finally entered the clothing line through its own private labels launching its brands.
Amazon Inc. is looking to enter the clothing line domain in the coming times. The firm already dominates the e-commerce sector and is the biggest online retailer of the world. Now it wants to make an impact in the clothing industry as well which will not only create a new revenue stream but will also contribute in improving its clothing category on its online marketplace. Amazon has launched its own clothing brands; this way, customers get more options and the company generates more profits.
Ever since its inception, Amazon is competing with the conventional brick and mortar model. It also has completely changed the books landscape and contemporary programming. The paradigm is expected to change now since the e-commerce giant has finally paved its way to fashion. The online retailer is geared up to explore new horizons in the fashion fraternity.
According to sources, the company has launched nearly 1,800 products, ranging from children’s clothing to women’s clothing, and men’s bags and clothing. The products belong to seven private labels that are working under the watch of Amazon. It owns and runs seven labels.
Amazon officials claim that they will be filling in the ‘gaps’ which are currently left by other fashion brands in the industry. So far, the online retail company has not confirmed the launch of its own clothing brands but Amazon Fashion’s Vice President of clothing, Jeff Yurcisin, suggested this move at the WWD CEO summit last year. He stated, “When we see gaps — when certain brands have actually decided for their own reasons not to sell with us — our customer still wants a product like that.”
The firm believes that it has what it gets to become the top clothing seller in the United States. Amazon would be working with its fashion arm in the similar way it is running Amazon Basics – a program where company sells home brand electronics to consumers through privately owned labels.
At this moment, the US’s accessories and clothing industry is a $250 billion industry, which surely is one of the places where the company wants to do business. Experts expect that the online retailer will overtake Macy’s to become the top clothing seller in the domestic market. Cowen & Company also agreed with this expectation. As it will be working through seven privately owned labels, it will enjoy higher profits and higher margins. The big name brands in the sector such as Calvin Klein and Levi’s also enjoy such success with similar private labels.
Amazon’s focus is to ramp up the hiring process of its private label team in the coming weeks.
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