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How Amazon took over the apparel market with no-name clothes

Amazon CEO Jeff Bezos
Amazon CEO Jeff Bezos. Photo: Ted S. Warren / AP

Amazon has quietly become the second-largest seller of apparel in the United States, investing heavily in its own private-label offerings, which customers have flocked to for their value. As designer Jackie Wilson tells Bloomberg:

They are not concerned at all about how many units they sell, and they’re not focused on margins. They’re concerned about customer satisfaction. They want five-star reviews.

Why it matters: Younger shoppers have become much less loyal to name brands, and retailers like Amazon, Walmart, and Kohls have capitalized by recruting designers and Asian manufacturers to create their own lines of apparel. Amazon's clothes are so popular that 40% of all e-commerce clothing sales go through the platform.

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