We expect the challenges the company has faced in courting the fashion community to remain, but we think Amazon will continue to evolve its strategy.
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Yruma anticipates Amazon’s focus on clothing will add at least $0.25 in EPS by as early as next year.
“Launched with little fanfare, the brands are: Franklin & Freeman, Franklin Tailored, James & Erin, Lark & Ro, North Eleven, Scout + Ro and Society New York”.
Nearly anything can be bought on Amazon: groceries, games, perfumes, music and more. WWD reports that, not only are the rumors of Amazon’s own private fashion labels true, they’ve actually been selling apparel and accessories under those in-house umbrellas for quite some time now.
“Amazon will use private label selectively, which should both enhance the offering and induce traditional apparel vendors to sell to Amazon”, Yruma wrote in his research about the new offerings.
The seven new labels include apparel and accessories for men, women and children.
A cashmere pullover option from North Eleven goes for $38.97.
It is the company’s first venture on its own in the apparel line, while it had been trying since a decade to make its mark in the fashion industry without success, courtesy of tough competition.
While “Amazon” is a familiar name, the clothing labels under the Amazon umbrella are much less recognizable.
Amazon has been increasingly spending more on fashion lately, scooping up online fashion stores, like ShopBop, MyHabit, and EastDane.
“They’re being very strategic about this”, said KeyBanc’s leading retail analyst Edward Yruma in an interview with CNNMoney.
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Franklin Tailored sells men’s suits, ties and gloves and Lark & Ro sells evening wear for women. “If Amazon is successful in this initiative, it could be “disruptive to the whole industry”. Jeff Yurcisin, vice president of Amazon Fashion, had indicated that the company was looking to make such a move at the WWD Apparel and Retail CEO summit in NY in October 2015. A pair of oxfords from Franklin & Freeman go for $53.97.
