Amazon India debuts private fashion label, expects sales to soar

By

Maverick Martins

Published
Sep 21, 2016

As the commerce companies in India start with their festive season sales, Amazon India has launched its first private fashion label to compete with its closest rival Flipkart, which so far has an upper hand in the e-commerce fashion market.

The launch is expected to boost sales and margins of Amazon India, with at least six labels expected to launch in India, says a report in Livemint.

The release of the brand - Symbol - was launched earlier this month right before the e-commerce companies started their festive season sales. Amazon India already offers electronics - like headphones, cables, backpacks and tripods - under its AmazonBasics brand and is hoping to launch the rest of fashion private labels by end of this year, said the news source.

E-tailers are now exploring options of high-margin private label business as they eliminate the need for third-party sellers. Fashion is expected to become the largest product category by 2020, says a Google and AT Kearney report. At present, it is the second largest product category in e-commerce business.

Amazon India’s move to launch a private label will also intensify its competition with the rival Flipkart, which had launched its first private label in 2014. Flipkart has a strong foothold in fashion, appliances and personal health and is already planning to launch its own label in jewellery, fashion accessories and mobile. Its acquisition of Myntra and Jabong has further added private fashion labels for the company.

To strengthen its position, Amazon India has hired Gautam Kotamraju, a former Myntra executive, who had played a crucial role in adding to sales while working for labels such as Roadster and Mast & Harbour.

Amazon launched its fashion category only late 2014 but it has quickly caught up with Flipkart, spending hundreds of crore on marketing, forging alliances with fashion labels, offering deep discounts throughout the year and delivering products fast.