Are private labels the key to beating Amazon?
While Amazon.com has had mixed results with its own label products (Kindle and Echo, good; Fire phones and disposable diapers, not so much), it’s clear Jeff Bezos and company see these products as a means to differentiate the company’s offerings from competitors, both online and off. As it turns out, Amazon’s rivals also see private labels as one way they can level the competitive playing field with the e-tailing giant.
An article on The Globe and Mail website points to retailers, including Canadian Tire, Hudson’s Bay, Loblaws and Walmart, as using their own labels to gain an edge. By emphasizing its private labels, Canadian Tire is looking to negate any price advantage Amazon may have with its dynamic pricing model.
The retail store operator, which operates more than 1,700 locations across three core banners — Canadian Tire, FGL Sports, Mark’s and Sport Chek — has been promoting its FRANK, Outbound and Woods brands to hold onto existing customers while attracting new ones. The company, according to The Globe and Mail report, is even considering selling its private labels internationally, perhaps even on Amazon.
Canadian Tire achieved a comparable sales gain of three percent year-over-year during the second quarter.
- Private labels a tool in battle with Amazon – The Globe and Mail
- Will Amazon become the king of private label – RetailWire
- Can Amazon dominate apparel with its own private labels – RetailWire
- Welcome to Canadian Tire – Canadian Tire Corporation
- Canadian Tire Corporation Delivers Strong Q2 Results – Canadian Tire Corporation
DISCUSSION QUESTIONS: What role do you see private labels playing for retailers looking to outcompete Amazon? In which product categories do you see Amazon as most vulnerable?