Move could mean higher profit margins.
By Raif Karerat
WASHINGTON, DC: U.S. web-retailing giant Amazon intends to create its own fashion and lifestyle brands and may choose India as the launching ground for its new endeavors, according to a report by The Economic Times.
Amazon is currently building a team to facilitate the creation of its private fashion label and has interviewed job candidates from leading online fashion retailers Myntra and Jabong, according to sources claiming to be close to the company’s inner workings.
The online retailer has allegedly already hired several individuals for its private label team, but has yet to choose someone to head up the eclectic operation. According to a posting listed by Amazon’s corporate U.S. office for a position in Bengaluru, the role involves” leading and managing the private label brands to maximize customer experience, sales, margin and turns. The person … must share our passion and commitment to giving Indian customers high quality fashion products.”
Private brands created by retailers themselves provide significantly higher profit margins due to the lack of “brand equity outgo” and the fact that products can be priced more competitively since less money is spent promoting the in-house offerings.
In the United States, Amazon has already entered the fray with its “Amazon Basics” line of electronics accessories and Pinzon brand of linens, both of which have been commercial successes.
During an interview last September, Amazon CEO Jeff Bezos told the Times that he’s enthusiastic about entering the fashion business.
“I think that some of the things we’re doing with small and medium businesses actually probably applies everywhere,” he had said. “And so, I’m very excited about that. Amazon Web Services, Kindle, Fashion, there are a bunch. We’ve got a lot of exciting frontiers.”