|Wed Oct 28 2015 20:47:08|
Amazon May Go Head to Head with Fashion Brands
By: Ina Steiner
What do you do if you can't get fashion brands to sell on your marketplace? If you're Amazon, you fill in the gaps with your own private label brands.
That's the news that came out of a summit of apparel retail executives this week. The VP of Clothing at Amazon Fashion told attendees that their brands make up the "lion's share" of its business. But, according to BuzzFeed
: ""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"" - so, he said, Amazon may get into private-label for those kinds of goods.
Few retailers could get away with such a statement. BuzzFeed said Amazon's willingness to manufacture its own version of products "might be a new negotiating chip for the company, not to mention more profitable."
Amazon has already introduced private label brands, including its Pinzon bedding and bath line. But would an Amazon brand pass muster with fashionistas?
More importantly, will the revelation do more to scare fashion brands than attract them? While private labels might "fill in gaps" in the short term, if they proved successful, would they begin cutting in to third-party brands on its marketplace - the brands that would most likely have contributed to Amazon Fashion's success in the first place?
Competing with the platform is a question online merchants have faced for many years now.
Also making news this week is Amazon's plans to launch a TV shopping channel through its Amazon Fire TV stick. Geekwire
describes its own recent purchases and has more on what's to come.
Will tempting people while they're relaxing at home lead to more sales? We'll have more on these developments in Thursday's Newsflash (available now
). Let us know what you think.