Amazon is cutting large numbers of its clothing brands. This is one of the rare times that Amazon has abandoned a venture.
Amazon is refocusing on using its name as a brand, getting rid of those that are not directly tied to the Amazon name. Wall Street Journal reports:
The Seattle-based company in the past year has decided to eliminate 27 of its 30 clothing brands, such as Lark & Ro, Daily Ritual and Goodthreads, according to people familiar with the matter. Some of the brands remain on Amazon’s site for now as the company sells off remaining inventory, but when completed its house-label clothing division will have just three brands: Amazon Essentials, Amazon Collection and Amazon Aware.
Exact numbers for brands being cut in other parts of the business couldn’t be learned, but Amazon Basics, which sells a range of home goods and tech accessories, will remain a focus for the company.
Amazon has gradually shifted from acting solely as a platform to now having private labels. Ironically, Amazon has also expanded to brick and mortar locations to facilitate delivery, shipping, and web services. Entrepreneur reports:
“We always make decisions based on what our customers want, and we’ve learned that customers seek out our biggest brands — like Amazon Basics and Amazon Essentials — for great value with high-quality products at great price points,” Matt Taddy, vice president of Amazon Private Brands, told Entrepreneur.
Taddy added that the company is getting rid of products that “aren’t resonating with customers,” and looking “for other opportunities to better meet their needs.”
Amazon’s tangling with the FTC could be the reason for its refocusing on its traditional strengths.
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