Recent reports that Amazon has teamed up with major athletic wear suppliers is causing worry in the sector. Sources from Bloomsberg indicate that the retail giant is teaming up with athletic producers in Asia to design, source and produce its own private label collection for activewear.
Although unconfirmed, the effect on leading names such as Lululemon (pictured) and Under Armour was fairly immediate with an instant dip in the value of their shares. Considering that Amazon has launched some 14 private brands in the space of around 18 months, this would not be a leap in the dark. However the effect on an already over supplied market could be detrimental, leading to further deflation in the activewear market and increasing pressure on pricing levels.
There is an underlining message here that if brands won’t agree to sell on the Amazon site then the natural next step is launch Amazon own lines.