Here’s Why Amazon Is Increasing Focus On Its Apparel Business

(Chris Ratcliffe/Bloomberg)

(Chris Ratcliffe/Bloomberg)

Amazon appears to be firing on all cylinders to establish itself as a strong player in the online apparel market. In December last year, the company unveiled “Buttoned Down,” a private label premium shirt brand which is available exclusively to its Prime members. Reports suggest that the company is now planning to develop its own line of workout apparel and is rumored to be looking to acquire bankrupt apparel company American Apparel. Private labels provide higher margins to the e-commerce retailer, and Amazon is looking to leverage this in the apparel market. The company is already the largest seller of clothes online in the U.S. and Amazon is likely to achieve a market share of nearly 20% in the U.S. apparel market by 2020. With increased consumer comfort levels in purchasing apparel from its platform, we believe the focus on private labels can ensure that the company generates higher margins from this business in the long term

[“source-forbes”]