Forgiato – #10 Most Amazon-able brand @ ComplexCon

Forgiato

Brand mission: Custom wheel manufacturer based in Los Angeles, CA. All of the wheels are built and finished in house with American parts. Founded in 2006.

Market insight as to why the product is hot: Forgiato Wheels have been featured in multiple popular music videos including “Who Do You Love” by YG and Drake, “Sittin Low” by Young Jeezy, and “Okay With Me” by Gucci Mane and 2 Chainz. Several celebrities have publicly shown their vehicles with Forgiato Wheels including Michael Jordan, Nicki Minaj, 2 Chainz and the #2 Amazon influencer for teens Kylie Jenner.

Why will it do well on amazon: More and more people are using part finder/ are using Amazon for automotive needs instead of dealerships. Maintaining an automotive catalog with the numerous variations and high sku counts is a daunting task and not many firms are in a good position to compete. Having said that, the consumer is definitely switching online, with a CAGR online for the category of >16% in 2019. 

With over 1.1 million Instagram followers and an established foothold in celebrity culture they would have an easier time overcoming “the cold start problem” and capitalizing on their existing branded search index to capture an outsized share of the market on Amazon.

#IYKYK >70% of US Softlines (apparel, shoes, accessories) GMV growth was done by Amazon.com

The wheels on what Goldman Sachs is forecasting here have been in motion for 5 years.

The wheels on what Goldman Sachs is forecasting here have been in motion for 5 years. The very same manufacturers that produce for the brands that are declining inline with retail Brick & Mortar closures are now providing assortment through the Amazon channel.

This has produced a number of intended and unintended consequence.

Pros for Prime Members:
– More offers for clothing, as brands in this segment are seemingly the most averse to Amazon’s shopping experience.
– More offers means more competition for their wallet, as offers increase the product quality will increase & more price points will emerge as niche opportunities on Amazon.

– Apparel retailers are amongst the least likely to have preferable shipping options for consumers. With Amazon’s convenience of shipping and other Prime Benefits, with any amount of effort paid to how Prime Members discover the right items, Amazon is in a terrific position to offer not just Fast Fashion, but “Fashion at the Speed of Amazon.”
– Direct to manufacturer supply chains offer the upside of more supply chain visibility & less ecological impact (clothing is pretty shitty for the environment it turns out).

Cons for Prime Members:
– While the selection has increased, I am not sure the “Quality” of offer or shop-ability of Amazon’s catalog have increased at the same rate. A simple category search term for “womens sunglasses” will show you what I mean.

Aviator Style Sunglasses & Aviator Sunglasses are Brand Names? Who are these brands? Who are the merchants? Where are the factories? Are they good actors or bad actors?

– There are millions of sellers on Amazon, while the vast majority are “good actors”, there are numerous “Grey” or even “Black” markets that exist. One such risk in buying from unknown merchants/brands on marketplaces is that you run the risk of supporting factories that do not adhere to industry standards in regards to labor rights and the like.
– Trying a new brand (especially in apparel/fashion) has so much subjectivity towards it (fit, material type, etc) that Amazon’s return policy might be the only reason Prime Members trust offers today enough to buy for their first date, however; I imagine Amazon will invest in growing this market. Contact us if you want to maximize your opportunity here!

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Amazon Shipping – the thing that drives stock price from $1,650 to $2,300 over next 18 months

Credit: CNBC

Amazon is getting clobbered after delivering losses for Q3. I bet Jeff is cackling with laughter, as his wealth manager buys back stock right this very second.

Amazon delivered losses on investing into 1 day delivery – convenience. That’s what took the stock from $300 – $1,800 in less than 3 years. I think its a pretty rational, safe bet to double down.

Such a sticky consumer experience they are building with Prime, that I would really look into how to earn more of the screen share / attention Amazon is commanding these days. (I am not a licensed securities advisor – just a humble man’s opinion).

Order Management Solutions – How to pick the best for your multi-channel business

explained by bazaar company x BigCommerce x smartOSC