This follows Amazon’s similar actions in US where it launched own brands in groceries, household products and diapers among others. Gautam Kotamraju, Myntra’s former chief creative officer, will be working with Amazon India fashion head Arun Sirdeshmukh to build a private-label portfolio, according to ETtech.
For ecommerce players, private brands can provide better margins than third party brands, therefore this step might prove to be crucial for Amazon as it ramps up operations in India. In June 2016, Amazon CEO had committed an additional USD 3 billion investment to its Indian unit, bringing the total commitment to USD 5 billion.
However, Amazon is also working on its private electronic accessories brand AmazonBasics which debuted in India in September 2015. Currently, the brand offers products like Headphones, HDMI cables, laptop backpacks, laptop sleeves, micro USB cables and tripods among others. These products are sold by Cloudtail, a joint venture between Amazon Asia and Infosys founder NR Narayana Murthys Catamaran.
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