Amazon planning sportswear foray?
NEW YORK: Amazon.com Inc is enlisting some of the biggest athletic-apparel suppliers as part of a foray into private-label sportswear, setting the stage for further upheaval in an alreadytumultuous industry.
Makalot Industrial Co, a Taiwanese vendor producing clothing for Gap Inc, Uniqlo and Kohl’s Corp, was making apparel for the Amazon line, said a person with knowledge of the arrangement.
Eclat Textile Co, another Taiwanese supplier, is contributing to the effort as well.
The project was new and longterm contracts hadn’t been signed yet, according to people involved. The manufacturers were producing small amounts of products for Amazon as part of a trial, said the people.
Eclat’s involvement is especially noteworthy because it makes clothing for Nike Inc, Lululemon Athletica Inc and Under Armour Inc and has key expertise in making sportswear.
Shares of Lululemon fell as much as 4.9 per cent after Bloomberg reported on Amazon’s sportswear efforts. Under Armour declined as much as 2.8 per cent. Nike also slipped, through its shares recovered, trading up 0.1 per cent.
The move comes as unwelcome news for activewear companies already struggling to stand out in a sea of competition and discounts.
Last month, Nike said it expected sales to decline again this quarter in North America.
Under Armour, , meanwhile, cut its annual sales forecast in August.
Lululemon has fared better this year but it, too, is facing steeper competition in the market for yoga pants and other sporty apparel, forcing it to look overseas for growth. Bloomberg