Amazon India is now gearing up to launch its own brand in the lifestyle and fashion segment. And if this turns out to be true, then India will be the first country to witness Amazon’s private fashion labels.
If the rumours are to be believed, the company has already hired a few experts for its upcoming fashion labels. They are said to have interviewed the experts already working with other online fashion retailers like Myntra and Jabong.
Is it a wise step?
If we have a look at the sales figures of the companies already in the business, then we will realize how much the industry is booming and why Amazon cannot afford to ignore the ‘Lifestyle and Fashion’ segment. As mentioned in one of our previous stories, Flipkart and Myntra’s combined fashion sales have already crossed $1 billiion. Another e-tailer that’s making a billion dollars from its Fashion segment is Snapdeal.
Fashion being a promising category, etailers especially like Amazon and Myntra focusing more on launching private fashion labels to achieve profitability is definitely a wise step.
In-House Brands – Thumbs Up or Thumbs Down?
In-House Brands have always been a better option for Online Retailers, as in-house brands means ‘direct selling to the customer’ and direct selling to the customer means ‘higher profit margins’. Private labels, hence can never fail. With the money these labels bring in for the companies, we shall just sit and watch the number of private labels grow.
Is it a smart move by Amazon?
We think, yes it is! We would have honestly been surprised if Amazon would not have joined the current trend of launching private labels especially in the Fashion segment where the money is just flowing in.