Amazon made a not-so surprising move this past Spring and attempted, once again, utilizing their endless customer data to create a new in-house brand. This time, it was Belei, a curated line of skincare products. While this seems like a no fail approach to creating a successful brand, skincare can't yield the same results as paper towels and protein powders.
The lesson from Belei is not whether Amazon can use data to develop brands with the products and price points their shoppers want, but rather that launching products is only the first of many steps. Amazon does rely on data to spot niches - why wouldn’t they - but in all categories except for generics that’s not enough to guarantee success. What works for launching AmazonBasics products doesn’t work elsewhere. In the beauty category brands are being built on customer loyalty, social media following, and innovative products. None of which applies to Belei.
Original article posted: 21 Aug 2019, written by Juozas Kaziukėnas
Cover photo: Belei Amazon Storefront Page
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