In the midst of massive growth, Amazon, the giant internet-based company, will further shock the retail industry after it launches its own in-house clothing brands.
For months, there have been rumors that Amazon was planning on further expanding in the retail industry. So far, it seems that Amazon has already started its quest. Days ago, the job postings on behalf Amazon hinted concrete clues. Amazon is now developing its own clothing brands. According to Ed Yruma, the managing director of Keybanc Capital Markets, Amazon has already introduced more than 1,700 fashion products, and it has trademarked more than six brands already.
Based on a report by WWD, Amazon is offering a lot diverse products for men, women and children. One could obtain women’s clothing and tailored attire for men under brands such as Society New York and Franklin and Freeman. Research indicates that Amazon owns such brands. Also, Amazon is leaning towards low prices. For example, one can get a pair of men’s shoes for around $50 under the brand of Franklin and Freeman. Amazon is sticking to low prices, which could bring a good competitive advantage.
Amazon has been selling clothes for more than a decade, but the company has not really been able to establish a prominent role in the clothing industry. Amazon has conventionally sold attire from other brands, which is why it has partnered with famous retailers. But Amazon has sold through its own outlets, which in reality were clues that the giant was planning in expanding. According to Jeff Yurcisin, the chief executive officer of Shopbob and the vice president of Amazon’s Fashion, sometimes companies would stop doing business with Amazon. This would consequently hurt the company since it could not offer the products that people demanded.
According to experts, Amazon has potential in regards to offering in-house brands. For instance, the private brands of Revolve are its top sellers. This company is among one of the most prominent ones in the e-commerce industry. Less than 20 percent of Amazon’s costumers purchase clothing products. However, Amazon’s greatest profits are in apparel. It beats other categories. Still, Amazon can become the biggest clothing retailer in the United States, dominating big businesses like Macy’s and Gap. This is highly possible because Amazon can respond to consumer demands very effectively.