Amazon Will Build Its Own Retail Market. Why Does Amazon Want To Do This?

According to the world clothing shoes and hats net,

Two home brands, retailers and labels, have been launched, that is, Stone&Beam and Rivet.

Obviously, Amazon hopes to build its own retail market in the various areas that the company has not yet controlled.

Amazon should be able to use it.

Loud power and its strong reputation make it easy to get rewards.

At present, Amazon seems to have not ceased its ambitions. The company has launched a large number of private clothing brands with retailers' labels, and Amazon has also taken measures to advance into the medical industry.

In addition, Amazon now starts to focus on a new market. The online retail giant has launched two private home brands, Stone&Beam and Rivet, to enter the home industry.

At present, the two brands have 30 days free return and three years warranty service, and two brands are mainly aimed at different consumer groups.

Rivet brand is mainly aimed at "medieval style" home products, which can provide solutions for smaller space. It seems to be more suitable for millennial users in residential cities.

The Stone&Beam brand household product integrates the classical aesthetic feeling, very suitable for family users, but the price is slightly more expensive.

Of course, the two brands of home products are different from those of AmazonBasics's own consumer electronics brand, and neither do they implement a low price or IKEA like style of sales.

On the contrary, Amazon hopes to adopt the "high value to help generate revenue" mode, which can be seen from the sofa chair of Rivet for $800 and the Stone&Beam sofa of $1150.

Why does Amazon want to do this?

It is clear that Amazon wants to enter every retailing that it has not yet controlled.

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Amazon can sell others' brand products, but there is no doubt that having its own brand can provide greater flexibility for Amazon Co.

Of course, creating your own brand can also help Amazon reduce the costs associated with paying middlemen.

Under these two new home brands, Amazon can build hundreds of lamps, chairs, sofas, tables and other products, and then sell them directly to consumers.

In fact, Amazon is not the only company pursuing its own brand strategy.

Target has also been strengthening the supply of clothing and household products, including a large number of independent brand products.

Can the independent brand strategy work?

The biggest challenge of any brand is how to expand market demand.

Target can expand its market awareness through physical store display and promotion with celebrities or well-known enterprises.

In contrast, Amazon will face greater challenges in expanding its market demand, but this retailer may use existing data to formulate product strategies.

Amazon can search a large number of "mini sofa" or "family chair" on its platform, thereby providing support for its entry into the home market.

Of course, not every independent brand will succeed.

Amazon should be able to make use of its brand influence and strong brand reputation to easily get rewards.

Although Amazon's two home brands have some competitive relationship with each other, they are not hostile relations.

The two brands are targeted at millennial generation and young family generation respectively.

These users are the core customers of Amazon, and they may not have enough experience in buying homes, and their loyalty to these two brands may also be very limited.

Therefore, Amazon also needs careful planning to strengthen these user groups' support for Amazon's home brand.

Today, Amazon feels that users can buy almost all products on the website, so there is no reason to say that Amazon can not get a good development in the home field. Perhaps this is the beginning of Amazon's home industry and will grow in the future.

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