Amazon may make its own sportswear, jolting industry
new york — Amazon.com is tapping some of the biggest athletic-apparel suppliers to make a foray into privatelabel sportswear, according to people familiar with the matter, setting the stage for further upheaval in an already-tumultuous industry.
Makalot Industrial Co, a Taiwanese vendor that produces clothing for Gap, Uniqlo and Kohl’s Corp, is making apparel for the Amazon line, a person with knowledge of the arrangement said. Eclat Textile Co, another Taiwanese supplier, is contributing to the effort as well — a relationship first noted by SinoPac Securities Corp analyst Silvia Chiu.
The project is new and long-term contracts haven’t been signed yet, according to people involved. The manufacturers are producing small amounts of products for Amazon as part of a trial, said the people, who asked not to be identified because the effort isn’t being promoted yet.
Amazon has previously ventured into private-label fashion, offering office clothing, jackets and dresses under names like 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 especially noteworthy because it makes clothing for Nike, Lululemon Athletica and Under Armour and has key expertise in making high-performance sportswear.
Shares of Lululemon fell as much as 4.9 per cent to $57.55 after Bloomberg reported on Amazon’s sportswear efforts Friday. Under Armour declined as much as 2.8 per cent. Nike also slipped, through its shares recovered, closing up 0.3 per cent at $50.98.
Amazon, based in Seattle, didn’t immediately respond to a request for 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 expects 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. That cutthroat environment in North America has pushed it to look overseas for growth. — Bloomberg