business news in context, analysis with attitude

Following up on a piece last week about how Amazon's private label strategy has been successful, Mashable goes one step farther, reporting that "Amazon is meanwhile busy pushing into more uncharted—and shakier—ground. Its ambitious new efforts include a host of higher-end fashion lines and premium food labels.

"Those endeavors bring some fresh challenges. Marketing boring household commodities is one thing; people don't tend to particularly care who makes something like a surge protector or a cutting board as long as it's cheap.
Clothes and food are a different story."
KC's View:
I think one of the most important passages in this story is the observation that while Amazon's rationale for expanding private label is the same as most other retailers - the ability to generate higher margins at lower prices - it has a weapon that most other retailers either do not have or don't exploit to full advantage. That would be data - the ability to know specifically who buys what, and where the pain points and opportunities are.

That's a huge advantage. Amazon isn't afraid to use it.