Report: Amazon brands primed to take on CPG leaders
Amazon’s private-label lines are giving large, well-established brands a run for their money.
The online giant’s private label portfolio is nearing 80 unique labels, up from 40 in 2017, according to a study from One Click Retail. While the offering is at an all-time high, five brands — Mama Bear, Basic Care, Presto, Solimo and Wag — are primed to make a significant impact on the market and compete with consumer product goods (CPG) brands.
According to the “Amz Q2 Update: Private Brands” report, AmazonBasics and other early brands were aimed at dominating niche categories, such as batteries, lightning cables and pet carriers. The online giant’s latest push however, is entering categories with large, well- established brands. One of Amazon’s newest endeavors, for example, is Basic Care, which features an assortment of over-the-counter (OTC) products.
Another contender is Presto. When it launched in November 2016, it featured laundry and dish detergents. Amazon expanded the offering a year later with hand soap, all-purpose cleaner, paper towels, and toilet paper.
Another new Amazon brand is Wag Dry Dog Food, which launched in May. The brand comes in five flavors, each of which was originally available in two bag sizes. The top sellers are all the 30 lb. bags, which is consistent with other leading dog food brands on Amazon.
While Wag has not yet launched a kick-start promotion to drive growth, Amazon may start putting more effort into this brand during Q3. “Only then will we know if Wag poses a significant threat in the dog food space,” the study said.
“Amazon already has the loyalty of over 100 million Prime members, and its growing range of private-label products is both benefiting from the loyalty of these consumers and, in turn, driving more loyalty with the success of leading brands, such as AmazonBasics,” said Ojastro Todd, marketing analyst, One Click Retail.