Retail Wrap: Amazon Explores Private Label Opportunity
Jun 19 2009
Retail Wrap >>

Following in the footsteps of its brick-and-mortar brethren, Amazon has quietly moved into the private label business. While storefront retailers often herald the advent of their in-house brands, giving them favorable visibility within stores, Amazon has launched its handful of brands without much fanfare. 

Amazon.com has a page dedicated to a line of products for the home including furniture, bedding, sheets, kitchen gadgets and more, proclaiming, "Pinzon Style is Your Lifestyle." The Pinzon range is named after Vincente Yáñez Pinzón, the Spanish explorer who first captained the Nina on the expedition led by Christopher Columbus in 1492 and later discovered the Amazon River. Other Amazon-owned brands including Strathwood (outdoor furniture) and Denali (bench and power tools).

The fact that a pioneer of online retailing and maker of such forward-looking products as the Kindle is dabbling in private label linens and patio furniture speaks well of the dexterity of Amazon's leadership. The company can make money selling e-readers, but it can also make money selling miter saws. The move into private labels means Amazon is competing with its obvious online rivals like eBay, but it's also staying competitive with storefront rivals like Target or Kohl's.

Adapted from sources: www.retailwire.com, 18 June and www.fastcompany.com, 16 June 2009