Amazon tries leap into sportswear
Amazon.com is tapping some of the biggest athletic-apparel suppliers to make a foray into private-label sportswear, according to people familiar with the matter, setting the stage for further upheaval in an already-tumultuous industry.
Makalot Industrial, a Taiwanese vendor that produces clothing for Gap and Uniqlo, is making apparel for the Amazon line, a person with knowledge of the arrangement says. Eclat Textile, another Taiwanese supplier, is contributing to the effort as well.
The project is new and long-term contracts haven’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, who asked not to be identified because the effort wasn’t being promoted yet.
Amazon has previously ventured into private-label fashion, offering office clothing, jackets and dresses under names such as Goodthreads and Paris Sunday. But pushing into activewear would bring fresh competition to some of the world’s biggest athletic brands.
Eclat’s involvement is noteworthy because it makes clothing for Nike, Lululemon Athletica and Under Armour and has key expertise in making high-performance sportswear.
Amazon didn’t immediately provide comment.
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 cut its annual sales forecast in August.