Amazon Plans To Launch Its Own Sports Brand

Online e-commerce, physical stores, and logistics are driving the market value of more than $480 billion Amazon The growth of the three carriages is now more and more terrified by traditional fashion retailers.

According to the world clothing and shoe net, Amazon is cooperating with some of the biggest sportswear suppliers, and plans to launch its own business. brand The sportswear will move in this clamour. Clothes & Accessories The retail industry is making waves.

Silvia Chiu, an analyst with Yongfeng gold securities, said that Taiwan businessmen, Mr. Ru hung, will cooperate with Amazon. It is worth noting that Confucianism is a garment manufacturer of Nike, Lululemon and Under Armour, which has a key advantage in producing high-performance sports apparel.

Amazon continues to enter the apparel industry, triggering shocks in capital markets

Amazon did not immediately comment on the news.

However, after Peng Bo reported the news of Amazon's involvement in the sports apparel industry, Lululemon's share price plummeted 4.9% to 57.55 dollars, while Under Armour dropped 2.8%. Nike also fell, but then the stock price rose 0.1% to 50.86 dollars.

The project is a new long term contract that has not yet been signed, and these manufacturers have begun to produce a small number of products for Amazon, but the news did not disclose Amazon's sports brand name, according to anonymous sources who participated in the cooperation. In addition, Ju Yang, a Taiwan manufacturer that manufactures commodities for UNIQLO and Gap, is producing garments for Amazon's product line.

The picture is Amazon CEO Geoff Bezos.

Amazon has already stepped into its own brand fashion industry and has launched a series of jackets, jackets and dresses. Its brand names include Goodthreads and Paris Sunday. But the Amazon's sportswear will bring new competition to the world's biggest sports brands.

In June, Nike announced that it would sell products directly to Amazon in search of growth momentum. Goldman Sachs analysts said that if Nike could sell directly on Amazon, annual sales would increase by 300 million to 500 million dollars, making competition in the sporting goods market more competitive. Through cooperation with Amazon, Nike can eliminate excess discounted stock in the market through third party retailers and sell more full price products through online channels.

Some analysts say that behind the cooperation between Nike and Amazon is a dramatic change in the American Apparel retail environment. There are about 26 million teenagers in the United States, who are familiar with the Internet and are known as "Internet aborigines". The survey found that they were familiar with brands but were not loyal to their brands. American teenagers estimated to contribute 830 billion dollars to the retail industry, accounting for about 7% of the total. Among them, women spend the most on buying clothes. They are totally immersed in the Internet world. Online shopping has become a habit, and Amazon has taken the lead, occupying 43% of the total online retail sales in the United States.

Fashion apparel is the main development target of Amazon since 2012, and has made remarkable achievements since its development. But in fact, Amazon is one of the five most valued companies in the world, and is planning a bigger three-dimensional layout. In June of this year, Amazon launched the "trial and buy" service Prime Wardrobe, the ambition behind it is the solid penetration of e-commerce.

According to the introduction, Amazon Prime members will be able to pick out three or more favorite items from the website and try them on for seven days at home, then send them back free of charge. Consumers do not need to pay for goods during trial wear. If they decide to buy after trying on them, you can enjoy the highest twenty percent off discount. Some analysts point out that this is another important step of Amazon's impact on the traditional fashion entity retail industry.

Morgan Stanley's latest research report, AlphaWise, shows that Amazon has become the second largest clothing retailer in the United States. According to the survey, 46% of respondents bought clothing in Amazon in the past year, which is only 60% less than that of WAL-MART. Analysts said Amazon's increased market share in 2016 came from department stores and Target. In addition, Amazon clothing sales are mainly driven by Prime members, and the order probability is 1.5 times that of non Prime members.

Amazon CEO Bezos believes that in the next few decades, the retail industry will not change three points. First, customers like low prices; second, customers prefer faster delivery; third, customers want more and faster choices.

Investor Buffett said on Amazon that he did not expect Amazon to develop so well that it did not feel like it would achieve massive success like this. When the industry was building a retail Empire, it was discovered that Amazon would bring about disruptive changes.

Some analysts say that both the secret of underwear brand Vitoria and sports brand Nike should be vigilant for Amazon because Amazon can react faster to its trend change and customer feedback than its competitors.

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