Can Amazon's Booming Private Label Sales Numbers Help Us Predict Promo Trends?
There's no dancing around the issue anymore: Amazon is the biggest e-commerce powerhouse in the game these days, and its capabilities are increasing almost by the day. It's been on the cutting edge of automation, delivery services, grocery shopping and countless other categories. Recently, it's dipped its toes in the apparel market by creating its own private-label brands.
So, since following Amazon's actions is a good indicator of what's next in the e-commerce world, is following its movements in the apparel sector a viable way to predict trends? The answer might just be yes.
Amazon's AmazonBasics label has made more than $250 million annually. For its individual apparel labels, its Lark & Ro label has grown 90 percent from last year, too, with sales doubling from $5 million to $10 million in 2017. Amazon's total apparel sales hit $21 million this year, with Amazon Essentials clothing sales reaching $3 million in that same time period.
These statistics, provided by Retail Dive, show that Amazon is doing pretty well for itself in the apparel world, and it's on a steady upward trajectory.
Additionally, Amazon is trying out a new delivery service modeled after other popular services: Subscription boxes.
The Prime Wardrobe service is currently in beta, but with other services like BirchBox and LootCrate on the market, Amazon could very well join the ranks, if not top them.
What's more, Amazon's private labels Mae, Goodthreads, Lark & Ro, and Buttoned Down all ranked on Amazon's best seller rankings in their respective categories. That was the first time that happened.
With the rate that the average consumer shops on Amazon, these numbers should be good enough for the average observer of fashion trends to see what people are looking for. The same way apparel distributors can look at retail shops, Amazon could be one of the most reliable sources of developing trends in the apparel world.
Are you paying attention?