(Nazra Z)
Amazon really, really wants to be your everything store. They do tech, they do digital goods, they do groceries, they even do same-day delivery. So perhaps it seems inevitable that they’re no longer just interested in selling other people’s stuff, but coming up with their own house brand for everyday items too.
The Wall Street Journal reports that, like basically every grocery and big box store out there, Amazon is planning to launch its own in-house store-brand line of items under the Amazon Elements label.
Amazon’s first foray into the Amazon Elements brand was not without its challenges. They started late last year with diapers and baby wipes, but had to yank the diapers off the virtual shelves less than two months in to the experiment because customers basically hated them and said they didn’t work properly. (And if there is one baby care product you really, really want to work properly, it is a diaper.)
At this point, the only Elements-branded product Amazon sells are the baby wipes. But, the WSJ reports, they could soon be joined by not only other personal care and home care items like razors and cleaning products, but also by your standard grocery-store staples like coffee, soup, water, pasta, and pet food.
Sales of generic (store-brand) items are on the rise, the WSJ points out, and it makes sense for Amazon’s bottom line that they would want to enter that market. The WSJ points out that Amazon’s Elements brand is likely to compete with Costco’s Kirkland line and Target’s Archer Farms and Up & Up lines. Private-label items have a higher profit margin for retailers, despite the fact that they generally cost consumers less.
But customers like generics mainly because they cost less. Not only did the Elements diapers not work particularly well, but also Elements baby products were framed as an upscale, higher-end option for parents to consider — on par with the biggest brand names, and more expensive than existing generic options. If Amazon wants Prime members to sip a cup of Amazon Brew with their Amazon-Os in the morning, they’ll probably have to make sure that their products cost less than some Starbucks and a box of Cheerios.
Amazon Plans to Add Its Own Line of Food [Wall Street Journal]
by Kate Cox via Consumerist
No comments:
Post a Comment