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Is Amazon betting big on sportswear with in-house label launch?

London - Online giant Amazon is reportedly keen to tap into another growing area within the apparel sector and set on making its first foray into sportswear. Amazon is said to working with the leading athletic-wear manufacturers who work with the likes of Nike, Under Armour and Lululemon Athletica to develop its own in-house sportswear label, according to Bloomberg.

Amazon reportedly preparing to launch in-house sportswear brand

Sources close to the matter claim that Amazon is already working together with Makalot Industrial Co., a Taiwanese supplier which manufacturers apparel for Gap, Uniqlo and Kohl’s to produce its first private label line of sportswear. In addition, Amazon is also said to be working with Eclat Textile Co, another Taiwanese apparel manufacturer which produces clothing for the likes of Nike, Under Armour and Lululemon Athletica.

Amazon is believed to be in the early stages of creating its first sportswear range, as the online company has just begun to order small batches of different protects to test as part of its trial. The online company has yet to sign long-term contracts, but the move signals Amazon intent to expand its current in-house fashion offering to fill all the gaps in its inventory.

The US-based online retailer previously launched its own in-house fashion labels earlier this year, launching several labels offering casual apparel, workwear and more under labels such as Find., Goodthreads and Paris Sunday. Some of Amazon’s in-house brands, such as Find., currently offer a number of sportswear items, such as yoga pants, sports bras and leggings.

But the launch of a dedicated in-house sportswear brand would see Amazon going head-to-head with leading athletic brands, including Nike, which Amazon recently partnered with to offer a limited assortment. News of the potential Amazon sportswear launch has already hit shares from Lululemon, Under Armour and Nike, as activewear brands continue to struggle against increasing competition from fast-fashion retailers and multi-brand retailers alike.

Branching out into sportswear seems like a logical move for Amazon, who is set to become the world’s largest seller of apparel by the end of the year. Although Amazon struggles to sell high fashion, such as designer wear, luxury brands and premium apparel, the online retailer is one of the leading sellers in basic, affordable items according to L2.

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