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July 6, 2009

Amazon Tests Waters of Internet Private Label Brand Naming

Amazon has been quietly, but vigorously and successfully, offering its own private label brands on its web site.

fish-turner-pinzon.gifExhibit A is the "Tom Douglas by Pinzon Dexter-Russell Stainless-Steel Slotted Fish Turner." "Pinzon" is the Amazon house brand and Tom Douglas is the celebrity chef who has endorsed it.

If you want one, you have to buy it from Amazon. You've probably also noticed that the fish turner also carries the name Dexter-Russell, which has made tools since 1818.

Here we see the celebrity endorsement doing the heavy lifting for the brand name, giving it an instant cachet. But Amazon isn't just a one trick pony, it has four house brands manufactured in ten countries:

pinzon-amazon-logo.gifAmazon Private Labels:
  • Pinzon - Launched 2005. The broadest and biggest of Amazon's house brands. Named for the European captain who first encountered the Amazon River. Bed and bath products, table-top kitchen tools and accessories. Indoor furnishings.
  • Denali - Launched 2006. Tools and accessories.
  • Pike Street - Launched 2005. Value-oriented products, particularly bed and bath.
  • Strathwood - Launched 2004. Outdoor furnishing and lighting.
As you can see, Amazon has been at this since 2004, but seems to have expanded its private label efforts thanks to the recession. This groups Amazon with Walmart and Target, who have also shored up their own private label branding for cost conscious consumers who still want interesting brand names in their homes.

In fact, Amazon has been referred to as "The next generation Wal-Mart" and seems set to keep on expanding its own lines, although these will ultimately represent only a fraction of the retailer's offerings.

At the same time, dead bricks and mortar brands are finding new life online. Stalwarts like Linen N' Things, Circuit City, Sharper Image and Bombay Co. are still out there as cyber brands.

It will be interesting to see how well these private label and resuscitated brands can compete online with brand names in the "real" world. For today's consumer, it doesn't get much more convenient or cost efficient than shopping online and buying for a lower price.

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Posted by William Lozito at July 6, 2009 9:50 AM
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