The U.S.-based e-commerce giant Amazon Inc. is looking to get into a new market soon. The online retailer is all set to get into the private-label sportswear business. Already, the online retailing site has begun talking about signing contracts with some of the most popular athletic-apparel suppliers to produce its private-label sportswear.

Amazon looking to launch private-label sportswear

According to reports of news site Livemint, the e-commerce company could foray into the private-label sportswear soon, for which it has begun talks with athletic-apparel suppliers like Makalot Industrial to produce its apparel. The Taiwan-based sportswear producer Makalot Industrial is making the apparel for the Amazon line, if we believe recent reports. Makalot Industrial is already producing clothing for Kohl’s Corp., Gap Inc. and Uniqlo.

But, sources told the news publisher Live Mint that no long-term contracts have been signed by the online retailing site yet. Eclat Textile Co., a Taiwan-based supplier that makes clothing for Under Armour Inc., Nike Inc., and Lululemon Athletica Inc. is contributing to the production of Amazon private sportswear as well, according to Silvia Chiu, analyst at SinoPac Securities Corp.

The Taiwanese supplier is popular for producing high-performance sportswear. These producers are manufacturing only small number of products for the online retailer under the trial project. This is not the first time that the online retailing company is foraying into private-label fashion. The e-commerce company has offered dresses, jackets and office clothing under names such as Paris Sunday and Goodthreads.

Competition to rise in the sportswear market

The U.S.-based company did not immediately respond to request for comment. But, we can predict from the news that this decision of the online retailer to step into the private-label sportswear business is bound to increase the competition and rivalry in the sportswear market. Sportswear companies and athletic brands like Lululemon and Nike Inc. are facing tough competition in the market already and that competition will increase with the debut of private label of the Seattle-based company in the market.

Lululemon is expecting some growth in the overseas market after competition in the market of sporty apparel like yoga pants whereas Nike said in September that it is anticipating a drop in North America this quarter. The analyst – Chiu – said that the venture of the online retailer in sports apparels is to fill the gap in its stock inventory so that it can provide more options to consumers who find a limited collection from popular brands. Chiu said, “Online apparel sales accounted for 19 percent of all apparel sales in 2016, up from 11 percent in 2011. Online sales are primed for strong growth.”

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