Amazon’s Intimates to Compete with Big Box Stores — Yahoo!

Amazon has entered the intimates market at a low price point, causing analysts to suspect that the online retailer wants to compete with Walmart and Target, not industry leader Victoria’s Secret:

The note points out Walmart and Target already sell low-price intimate apparel, and yet, Victoria’s Secret continues to own roughly 27% of the market. That means the people who shop at Victoria’s Secret are unlikely to be swayed by low prices, and find value in other things, like service and product quality. Instead, Amazon’s strategy looks almost the same as what Walmart or Target are doing.

Supplier Takeaway

Amazon has been easing into clothing retail for awhile, but the decision to offer fun, low-price intimate apparel indicates that it perceives the need to compete with lower-priced retailers, not specialty stores.

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