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  Home > Internet & Media


Amazon Reportedly Ready To Launch New Private-Label Brands


 


 May 16th, 2016  |  09:19 AM  |   1799 views

CNET

 

New lines represent the Internet retailer's first broad push into perishable items, according to The Wall Street Journal.

 

Amazon will introduce new lines of its private-label brands in the coming weeks, the Wall Street Journal reported Sunday, citing unidentified sources.

 

Representing Amazon's first broad foray into perishable foods, the new brands will have names like Happy Belly, Wickedly Prime and Mama Bear and include nuts, spices, tea, coffee, baby food and vitamins, as well as household items such as diapers and laundry detergents, the newspaper reported.

 

The reported move mirrors the strategy of several major retailers, including Costco, Walmart and Target, which have recognized the lucrative nature of selling groceries. Private-label portfolios tend to have higher profit margins than brand-name goods because the companies save on marketing and brand development.

 

Store brands sales reached $118.4 billion in the US in 2015, an all-time record and an increase of about $2.2 billion from the prior year, according to the Private Label Manufacturers Association.

 

The first of the brands, which will be available only to Amazon Prime subscribers, begin appearing at the end of May or early June, the Journal reported.

 

This isn't the first time Amazon has dabbled in private brands. The Journal reported last year that the online retail giant was preparing to add milk, cereal and baby food to its Elements brand.

 

An Amazon spokeswoman declined to comment on the report.

 


 

Source:
courtesy of CNET

by Steven Musil

 

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