Will Amazon'S Own Brand Sweep All Competitors? The Latest Research Shows That There Is No Need To Worry About Fashion Brands.

The explosive growth of its own brand of Amazon, an e-commerce giant, has raised concerns about whether Amazon will use its influence to publicize its own brand so as to squeeze the development space of similar businesses on its platform.

Amazon's own brand sells products ranging from batteries, diapers to sofa, jeans and Mexico corn flakes. But Marketplace Pulse, a New York electricity research company, concluded that Amazon's own brand will not threaten other businesses after studying the 23 thousand commodities on Amazon, because even though Amazon has raised the frequency of its own brand in search results, consumers have no more intention to purchase.

Although the data of EMarketer Inc point out that Amazon accounted for 52.4% of the US online shopping expenditure in 2018, Marketplace Pulse's research pointed out that the media coverage and biased remarks exaggerated the market power of Amazon.

Marketplace Pulse founder Juozas Kaziukenas said: "Amazon can launch a product, and then magically make use of data dominance to occupy a subdivision category. This idea is" conspiracy theory ". Everyone likes to mention successful cases, but in fact, most of Amazon's own brands are not successful, and the sales of most products still lag far behind other businesses of the same category.

The study of Marketplace Pulse used sales ranking and user reviews as indicators of different products, including Amazon's own brand and other brands sold only on Amazon. Amazon's success is limited to batteries and other basic products, because consumers tend to look for alternatives without brands to save money. But in clothing and other categories, mature brands have become household names. Amazon's "A for Awesome" and other children's wear brands have not caused much response.

Amazon has yet to respond to requests for comment.

TJI Research's data show that Amazon's own brand and Amazon's exclusive distribution brand, Amazon sells more than 550 exclusive brands. Most brands have been in the platform in the past two years, and there has been considerable criticism from the outside world that Amazon has gained unfair competitive advantage as a platform for making rules.

Recently, US Senator Elizabeth Warren even proposed a resolution to split large technology companies. Elizabeth Warren cited a case in 2016 in Bloomberg, when a laptop stall manufacturer began selling its products in the name of AmazonBasics when Amazon started selling its products.

Amazon's fast-growing battery business has had a negative impact on battery brands such as Energizer (energizer) and Duracell. Kantar Media research conducted in September 2018 showed that AmazonBasics battery is the top three product of Amazon search, more than half of which are related to consumer search and battery, higher than Energizer and Duracell.

1010data 2016, a report predicts that Amazon occupies 94% of online battery sales, which is why its AmazonBasics battery can become a leading brand of the same category.

Juozas Kaziukenas said these findings suggest that Amazon has a greater alternative advantage in brands that lack control. In terms of clothing and other products that require more brand loyalty, Amazon's own brand has not won the hearts of consumers.

"Gorgeous" has reported that plug-in and development tools provider JungleScout in 2018 for Amazon's own brand sales report released "Amazon Private Label Brands Analysis" pointed out that the Amazon group's own clothing brand sales accounted for only 1% of the group's total sales, of which 82% of the average monthly sales of women's clothing brands no more than 100. (see: Amazon's own brand analysis report: 82% of the women's wear brands have an average monthly sales of less than 100 pieces, and the best seller is the base money).

The Internet direct selling brand Casper, Harry 's and so on use social media marketing to promote their products. Target Corp (Taghit) uses the attractive entity stores to promote their fashion brands. Amazon only had its own brand on the website and did not give consumers the reason why they could not buy it.

Juozas Kaziukenas points out: "selling cheap batteries and building brands are two different concepts. Even if Amazon recommends" checking our own brand ", consumers do not understand what this means, nor do they understand why they have never heard of anything.