We said it before and we’ll said it again. Amazon Inc. wants to have a strong presence at any market. So the fact that the online retail company is almost ready to launch new lines of private-label products, wasn’t such a big surprise. According to a Wall Street Journal report Amazon will introduce a line of food products that will include nuts, spices, tea, coffee, baby food and vitamins, and popular household items such as diapers and laundry detergents. The brands will have names such as Happy Belly, Wickedly Prime and Mama Bear.
The report adds that Amazon’s household brands will appear as soon as the end of the month or early June. Amazon’s new brands will include the brand Happy Belly with food products like nuts, trail mix, tea and cooking oil, the people said. The Wickedly Prime will include snack foods. In addition, the company plans to include the Presto! line of household products, like laundry detergent, and the Mama Bear brand for baby products like diapers, baby-food jars and gentle detergent.
And maybe this is exciting news for Amazon consumers but the private-label brands will only be available to members of its $99-per-year Prime membership. Also, it is unknown how much these products will cost relative to brand names.Amazon’s new project is not something groundbreaking. Consumers are very familiar with private-label products from other famous retailers. And through the years those products have evolved their quality and packaging. Companies like Sephora or Walmart offers a huge variety of household stuff, and many of them are high-end products.
Bill Bishop, chief architect of brand consultancy Brick Meets Click said in a statement:
“Amazon is ‘carpet-bombing’ the market with new products. Private label allows them to test out new prices and distinctive flavors with less risk.”
Of course this not the first time that Amazon introduces us with house-brand goods. The AmazonBasics line has hundreds of items such as phone cases, batteries, dumbbells and dog crates. Of course through the years there have been some withdrawals.
But food production is not the same as manufacturing smartphone cases. It has many risks. Amazon has to be very careful while searching for food manufacturers. Some of them may have varying quality controls. It is another thing to have a recall for a bad battery and another to have a health-related recall. If something like occurs, it could damage Amazon’s reputation.
Amazon has approximately 50 million or more Prime members. So, the online company will use the time they spend on the website to advertise and promote the new lines of brands. It is unknown if the products will be available for everyone in the future.
Image soure: HBR