CMU Blog: Week of 10/16/2017

In recent news, Amazon Inc. is partnering with suppliers to launch a private-label sportswear line.  According to people familiar with the matter, Amazon has been building partnerships with similar suppliers as Gap and other large apparel companies.  This is bad news for large players in the sportswear industry who are already experiencing a downward trend in sales such as Nike, and Lululemon.  This is a new project, and there are no contracts signed, however Amazon is looking at samples from the suppliers to test the feasibility of this launch.  Amazon plans on using their new active wear line to fill inventory gaps from large brand names, meaning that if they cannot find a specific article of clothing from a big brand, Amazon wants that business.  This may also force the hand of other sportswear companies who do not currently sell on amazon.  Currently, 16% of clothes are bought online, meaning that if the consumer cannot find a companies product on the website, they may turn to purchasing the alternative offered by Amazon, bringing more companies to Amazon’s e-commerce site.  This is not the first time that Amazon has ventured into private label clothing, however this new sportswear line is sure to make its impact in the industry.