Seems like Amazon is out to take over the retail world for good.
There are few categories that Amazon hasn’t set foot in yet. And even fewer, or next to none, that it hasn’t already been considering. After their recent move into private-label clothing and active wear, Amazon has launched two new private furniture labels as well - Stone & Beam and Rivet.
Calling Stone & Beam "modern farmhouse" and Rivet "Mid-century," the two lines target different consumers. Rivet offers "small-space solutions" and seems aimed at city-dwelling millennials. Stone & Beam incorporates country and modern touches for families with a little more money to spend.
While the first implication is that IKEA should be worried, in reality, Amazon isn’t necessarily going for the same market segment. Instead of offering low prices or Ikea-style values, Amazon is aiming for the "good value for the money" space. So, customers could be expecting $800 couches in the Rivet line and $1,150 sofas under the Stone & Beam brand.
While it thrives on selling third party brands, Amazon has evidently realized that it stands to progress and profit more from private labels. Going private label also allows Amazon to cut out the costs associated with a middleman. And moreover, the strategy seems to be an ongoing trend in the retail sector, with Target having recently revamped its clothing and furniture offerings to include a number of company-owned brands.
A major problem with entering the furniture market for an online retailer like Amazon is that it’s generally considered a category where people like to physically buy products after examining the look and feel. However, if they are venturing into the category, it’s obvious that the strategy is backed up by enough consumer searches for ‘tiny sofa’ and ‘triangular corner table’ on their website.
Beyond furniture and fashion, Amazon’s own brands also include electronics and accessories, batteries, vitamins and supplements, baby wipes, linens, tools, snack foods, and, with the addition of Whole Foods, the 365 Everyday Value brand.