Steve Madden working on private label brand for Amazon. Intro in time for BTS ‘18. —Camilo Lyon, consumer analyst, Canaccord Genuity
— Footwear Plus (@FootwearPlusMag) August 15, 2017
This morning I was doing my usual reading on Twitter and the notification above popped onto my phone. I immediately wanted to write an article, but I didn’t want to fail to give credit for the discovery to Footwear Plus, so follow them by clicking the button in the tweet above.
Now, on to the matter at hand. When I wrote the article below and explained that the ultimate disruption to Nike, Under Armour and adidas would be Amazon, I was stating this because I had a very clear understanding of how private labels empower retail outlets.
I also wrote another article on Nike’s brand registry which made the point that Amazon moves quietly and efficiently into different businesses and effectively decreases the reach of other brands.
Steve Madden is one of the stronger brands in footwear. A private label for Amazon will further utilize the bevy of data that the company has from marketplace users and brands carrying their footwear on the e-commerce giant. This data tells them which styles sell the best literally creating a failsafe for the private label. The Steve Madden/Amazon private label will design and release based on data that provides the top selling shoes on the platform. This is my hypothesis, but it’s logical.
I stated that the apparel Amazon is creating under their private labels was a disruption. I made this statement to an influential analyst and he blew my comment off as faulty because those clothing labels aren’t disrupting anything… right now. I’m sure those CPG brands who are no longer selling as much on Amazon because of Amazon Essentials thought the same thing when Amazon made its first battery. Read the article above on Nike selling directly on Amazon and see how that turned out.