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    Amazon Forces, Sports Giant Brands Are Close.

    2017/10/31 13:09:00 86

    AmazonSports GiantBrand

    If Nike wants to hold Amazon's thighs, will Amazon be willing to be a service provider? The answer must be negative.

    Amazon has already launched its own clothing brand, and now it is also expanding into the sporting goods sector.

    Sports Major

    Nerves are tight.

    Previously, Amazon's own brand has already covered many categories, such as men's wear, children's wear, underwear and even dress, and the overall price is much cheaper than that of the exclusive store.

      

    In addition, Amazon also launched a personal customized service. In April of this year, Amazon also obtained the patent system in this area.

    The system can arrange large-scale clothing assembly process and improve the efficiency of garment customization.

    In addition to customizing products according to the needs of consumers, Amazon can also give its own suggestions and guide people's clothing matching. Therefore, the special Echo Look smart camera can acquire user's stature and appearance information, and give corresponding customization suggestions.

      

    Amazon

    The early layout mainly focuses on fashion products, but it can only be confined to the low-end areas. Most luxury brands still have some criticism on the online marketing mode.

    However, the rise of sports and leisure has made Amazon see the opportunity to develop fashionable clothing, and it also wants to build its own Lulelemon.

    Recently, Amazon's series of actions have shown that this electronic business platform has become a product.

    Costume magnate

    Ambition.

    At the beginning of this month, Amazon spent more than 50 million US dollars to acquire 3D Body Labs, a human modeling technology company. The idea of the company is to use the high-precision 3D body scanning technology to enable the body itself to become a data platform, and around this data platform, goods and services can be designed, manufactured, traded and recommended.

    Amazon can integrate this technology into its own clothing customization business.

      

    According to insiders, Amazon is recruiting sportswear suppliers, ready to create a free sports brand, formally enter the field of sports apparel.

    Two Taiwan suppliers have started producing clothing for Amazon. They are Makalot Industrial, a supplier of fast fashion brands such as Gap, UNIQLO, and Eclat Textile, another clothing manufacturer.

    They have begun to produce a small number of test products for Amazon.

    This great scholar enterprise is not small at all. It is making high performance.

    Sportswear

    With rich experience, it is also a big clothing supplier of Nike, Under Armour and Lululemon.

    This is absolutely bad news for the traditional sports brand, because Amazon is likely to develop into an opponent that makes them all very much headache.

    Once the news came out, the share price of the three major brands had dropped to varying degrees, especially in Lululemon.

    Some analysts have said that both fashion and sports brands should be vigilant against Amazon's killing, because it not only has channel advantages, but also can feel the subtle changes in the retail industry in a timely manner, so that it can respond more quickly to the trend changes and customer feedback than competitors.

    Moreover, Amazon has made some technical preparations in the early stage, which is not a war of no preparation.

      

    Analysts at Cowen, a financial services firm, once said that Amazon's huge trading data database and consumer browsing habits can give it a place in competition, and it knows what customers want.

    Analysts also believe that consumers do not attach much importance to brand names. The convenience brought by Amazon Prime membership service is more important.

    Amazon has a lot of traffic and huge volume of clothing trade. It's logical to increase profits through self built brands.

    From the fact that the major sports brands in North America are not very ideal, the strategy of sticking to sports and leisure does not seem to solve all the problems. Some people also say that the trend of sports and leisure has come to an end.

    Wells Fargo Bank analyst Tom Nikic (Tom Nikic) said that in the past two or three years, consumers rush to buy sports and leisure products like swarming, causing too much inventory in their hands, thereby losing the need and motivation to continue buying.

    Coupled with the lack of innovation in the product itself, offline sales are sluggish, thus affecting the development of the industry as a whole.

    Qiu Cuixin, an analyst with Yongfeng securities, said

    Garment supplier

    Cooperation with the e-commerce platform reflects the changing demand of consumers. In the future, the proportion of clothing online sales will continue to increase.

    For professional sports brands, even if they use Nike as Amazon to open up online channels and have to face the strong squeeze from Amazon's own brand, the future situation is still confusing.

      

    In fact, Nike or

    Adidas

    This famous world famous brand is good. After all, their product systems are mostly unable to count themselves, plus rich professional sports marketing resources, and the coincidence degree with Amazon is not too high.

    But for Under Armour or Lululemon products with relatively simple form, the impact may be more direct, which is also the reason why the two share price volatility is even greater.

    Canada's Financial Services Company Canaccord Genuity has slashed Lululemon's stock rating recently because of the cooperation between Amazon and Hong Ru enterprises.

    Camilo Leon, an analyst at the Camilo Lyon, believes that sharing a supplier with Amazon is not good news for sports apparel brands, because Amazon's online channel is too obvious, and it is also likely to have potential price advantage, because it does not need to spend much effort on brand promotion. The high flow rate is enough to make enough people notice the existence of Amazon sportswear.

      

    And Amazon is really not just online. It seems to have been inspired by the idea of "new retailing" and began to "reverse the line".

    At present, mainly with Kohl's department store, sales of products category is only focused on electronic products, but there are already many other department stores plan to create space for Amazon, we all feel that this is a win-win opportunity.

    The cooperation between department stores and Amazon is a double blow to the sports brand, because we do not rule out that Amazon will arrange clothing categories to the next line at a certain time in the future, and then the real fight will start.

    Of course, it is too early to consider this issue. Amazon's main battleground must be online.

    Business consulting firm FTI Consulting predicts that as more and more consumers stay away from physical stores, by 2027, the U.S.

    Online retailing

    Sales will exceed US $1 trillion, far more than US $445 billion this year.

    By 2027, Amazon's share of total online sales will rise to 53% from 34% in 2016.

    A new sports tycoon will be born? Let's wait and see.


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