Amazon plans to create its own brands for the fashion and lifestyle segment in India, making it the first country where it would be selling its fashion private labels.
As reported by The Economic Times, Amazon India is working on building a team to execute its plan into action. It has interviewed people from online fashion retailers Jabong and Myntra. Although the US firm has already hired people for its private brands team, it is still looking out for a person to head the business.
Nitin Chhabra, CEO at e-commerce consultancy firm Ace Turtle said, “private labels give higher margins to retailers in the range of 55 per cent – 65 per cent as compared to 35 per cent – 40 per cent margins they get by selling other brands products. Private labels tend to be great differentiators for retailers and they can plug the gaps on what companies otherwise provides and what consumers are looking for.”
In the US, Amazon sells products under its private brand labels. Pinzon is an Amazon private brand of towels and bed-sheets; and batteries USB cords, laptop bags among others come under Amazon Basics.
A few months ago, Amazon’s US headquarters had published a job advertisement on Linkedin for the position of head for private brands to be based in Bengaluru. The job description read, “This position is responsible for leading and managing the private label brands to maximise customer experience, sales, margin and turns.” The advertisement mentioned,”The person who joins our team in this critical leadership position must share our passion and commitment to giving Indian customers high quality fashion products.”
Thus indicating clearly that the company is getting into the private label game against the Indian players.