Amazon.com Inc. is moving onto VictoriaÃ¢Â€Â™s SecretÃ¢Â€Â™s turf.
The online retailer plans to start selling its own line of competitively priced womenÃ¢Â€Â™s intimate apparel on its U.S. website, according to people familiar with the matter, something that could begin in the next several weeks. It recently started selling bras for under $10 in Europe, where it uses the label Iris & Lilly.
Ã‚Â entrance into the lingerie space presents a challenge for industry stalwarts such as PVH Corp.Ã¢Â€Â™s
Ã‚Â Calvin Klein and L Brands Inc.Ã¢Â€Â™s
Ã‚Â VictoriaÃ¢Â€Â™s Secret, which have built their businesses on bras that retail at around $40. Amazon, which already sells intimate apparel from several department-store brands, has a history of leveraging consumer data from its online listings and offering cut-rate prices to grab market share.
Lingerie has been among the last e-commerce holdouts because fit and comfort are often hard to assess online. But a shift in consumer preferences toward garments with more simple sizingÃ¢Â€Â”such as sports bras and bralettesÃ¢Â€Â”makes it easier for online sellers to attract buyers. Several e-commerce-driven startups use fit surveys and free returns to help lingerie shoppers make the leap.
At prices under $10 a bra, Amazon is likely sacrificing profit margin to push into the space. Depending on the size of the order, it can cost a large brand like VictoriaÃ¢Â€Â™s Secret $10 just to produce and ship an underwire bra from a factory in Asia, said people familiar with the matter.
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