Why Did Amazon Squeeze Into This "Track"?

Thinking about

The clothing industry has been around for a long time.

Last year, the retail giant quietly launched 7 clothing product lines, including casual men's wear, contemporary women's wear and

And accessories.

Now, Amazon looks at the sportswear worn by Lululemon in the past two years.

This new trend is exposed from Amazon's recruitment advertisements.

The ads say that their own brand teams are recruiting brand managers to create a casual wear brand with a unique DNA. One of their main responsibilities is to "promote financial growth, productivity and profitability, product development, merchandise sales, supplier relationship management and customer experience."

In the past two years, brands like Lululemon and Fabletics have given the United States a sportswear and leisure market, pushing the market of us casual wear to $44 billion.

Whether they are young white-collar workers or mothers who walk their dogs, they dress like yoga everywhere, and those who really practice yoga are fighting the domestic square dance.

Related new brands emerge in an endless stream. Stars such as Beyonce also jointly launch their own sports and leisure product line with Topshop, and traditional sports brands are not affected.

According to the world clothing and shoe net, the bubble of casual wear began to burst, and the market saturation led to a fall in prices. In December last year, the Yogasmoga application, which once threatened Lululemon status, went bankrupt. The Wall Street Journal said that the assets of the company were worth millions of dollars to tens of millions of dollars, but liabilities were almost the same level.

Industry analysts are also starting to wear down the casual wear market. The main problem is the market saturation. There are already more than 2000 casual wear brands in the market. Every new brand says that it is the next Lululemon.

So why did Amazon squeeze into this circuit?

First of all, this is still a profitable market. Although the market growth rate dropped from 15% in 2015 to 12% in 2016, it is still expanding.

Secondly, the congestion of the track may not be a big problem for Amazon.

After all, Amazon is not just a retail website, but also a "clothing search engine". According to Bloomberg, over 55% of people want to search with Amazon (instead of Google) when they want to buy clothes.

Maybe you won't remember the website address of Yogasmoga, but when you buy a bunch of other things on Amazon, add Leggings is easy.

Analysts at Cowen, a financial analyst firm, believe that Amazon's huge trading data base 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 nowadays. Amazon Prime service brings more convenience. Amazon may exceed Messi's department store in 2017 to become the largest clothing retailer in the United States.

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

As mentioned earlier, in addition to this casual wear brand, Amazon has also launched various lines of clothing brands, including women's clothing brand Society New York, children's wear Scout&Ro. and men's tooling shirts brand Down Buttoned, but Amazon has not disclosed relevant sales data.

Amazon's layout of the fashion industry is also reflected in another aspect. According to the world clothing and shoe net, Amazon is bidding for the acquisition of the American fashion brand American Apprarel, and the bidder also includes Forever21, NextLevel Apparel and Authentic Brands Group.

Harvesting this famous brand can bring a lot of resources to Amazon's fashion line, and also enhance the link between Amazon and fashion in the minds of consumers.

More interesting reports, please pay attention to the world clothing shoes and hats net.