The Spanish came to the New World in search of gold. Now it
appears as though Amazon.com, like many other retailers, is looking to strike
gold with the introduction of a new private label line. One, not coincidentally,
that is named after Vincente Yáñez Pinzón, the Spanish
explorer who first captained the Nina on the expedition led by Christopher
Columbus in 1492 and later discovered the Amazon River.
Amazon.com has a page dedicated to a line of products for the home including furniture, bedding, sheets, kitchen gadgets and more, proclaiming, "Pinzon Style is Your Lifestyle."
The Amazon Strategies blog by Channel Advisor CEO Scot Wingo noted that a Pinzon search on Amazon turned up 551 items. Interestingly 100 Pinzon products were also for sale on eBay. Responses to the post brought to light other Amazon-owned brands including Strathwood (outdoor furniture) and Denali (bench and power tools).
A piece on the Fast Company website concluded, "The fact that a pioneer of online retailing and maker of such forward-looking products as the Kindle is dabbling in private label linens and patio furniture speaks well of the dexterity of Amazon's leadership. The company can make money selling e-readers, but it can also make money selling miter saws. The move into private labels means Amazon is competing with its obvious online rivals like eBay, but it's also staying competitive with storefront rivals like Target or Kohl's."
Discussion Question: What is your reaction to Amazon.com moving into private label goods? Why do you think the normally publicity-seeking Amazon has been so low-key about its move into private labels?