Amazon launches own brand fashion labels

No primary category set

Amazon is entering the rag trade, according to industry reports. And apparently they’re already selling fashion items under the brands Franklin & Freeman, Franklin Tailored, James & Erin, Lark & Ro, North Eleven, Scout + Ro and Society New York. It’s reported that Amazon is already selling nearly 2000 lines.

The move was revealed by analyst Ed Yruma at Keybanc and he said: “Amazon will use private label selectively, which should both enhance the offering and induce traditional apparel vendors to sell to Amazon. Apparel is a large category that remains highly fragmented. We think the low barriers to entry, size and significant competitive set make this an attractive category for Amazon. While apparel is one of Amazon’s fastest-growing categories, more work must be done for the business to scale. We expect the challenges the company has faced in courting the fashion community to remain, but we think Amazon will continue to evolve its strategy. We believe greater brand cooperation with third-party seller restrictions and an owned brand approach (development of niche brands and private label) will be necessary to penetrate the apparel market in a more meaningful way.”

It raises the question as to whether there is any sector or activity that Amazon won’t have a go at if it thinks it can prosper. From kindles to drones to fulfilment and TV, the scope of the business is dramatic and broad. But of course, it has huge expectations from Wall Street to live up to so it will be interesting to see if this endeavour is successful.

And it also goes to show that Amazon isn’t afraid of competing with its on 3P sellers. Are you a fashion seller now competing with Amazon? How do you feel about this?

2 Responses

  1. This is the Amazon end game, to have in house brands in every category that makes profit and leave the scraps to 3rd parties frightening It out whilst handing over tidy sum.

    Will work great for Amazon, but sadly not any other sellers on the platform.

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