Founded by Jeff Bezos in 1994, Amazon.com, Inc. started off as an online bookstore. Since then, it has diversified into a whole range of new markets. In 2015, Amazon superseded American retail giant Wal-Mart Stores, Inc. as the most valuable retailer in the USA (by market capitalization.)
Amazon.com, Inc. has now entered the clothing market after launching its own clothing range. Their recently announced clothing range comprises of 7 fashion brands (James & Erin, Franklin Tailored, , Lark & Ro, Scout and Ro. Society New York, Franklin & Freeman, and North Eleven.)
Each brand is distinct in the type of clothing that it offers (the clothes on offer range from baby clothes to stylish suits for men.) The launch of Amazon’s clothing range was first reported on by The Verge, at around 4pm EST yesterday. On the 17th of February, Amazon was reportedly in talks with former Marks & Spencer womenswear boss France Russell.
The vice president of clothing at Amazon Fashion, Jeff Yurcisin, said (at the the WWD Apparel and Retail CEO Summit) “For Amazon, we know our customers love brands, many of the brands in this room…and that’s where the lion’s share of our business comes from. When we see gaps, when certain brands have actually decided for their own reasons not to sell with us, our customer still wants a product like that.”
A leading analyst at KeyBanc Capital predicted (shortly after the launch of Amazon’s fashion brand) that it could substantially boost Amazon’s profit, and could potentially contribute to in excess of 25% of their profit for 2017. Amazon had a stellar year last year (in terms of financial performance.)
As of 11:57 EST, Amazon’s stock is down by 2.42% at $539.57 a share. In 2015, the firm generated a revenue of $107 billion, and a net profit of nearly $600 million.