Retail brands seeking to bypass Amazon (NASDAQ: AMZN) are finding it increasingly difficult to maintain market share, as those embracing the platform tend to outperform competitors.
Amazon Partnerships vs. Direct-to-Consumer Struggles
- Estée Lauder, after resisting Amazon for years, finally launched a first-party business in October 2024 following market share losses.
- Nike (NYSE: NKE), which pursued a DTC-first strategy since 2018, saw its U.S. footwear market share remain flat through 2022, a disappointing outcome for an industry leader.
- In contrast, brands actively working with Amazon, such as L’Oréal, e.l.f. Beauty (NYSE: ELF), Skechers, and Crocs (NASDAQ: CROX), have continued to expand market share.
Retail Growth Outside Amazon Remains Weak
- U.S. retail sectors excluding Amazon are growing at a slower pace, making it harder for brands to outpace industry trends without a presence on the platform.
- MoffettNathanson analysts emphasize that “all roads lead to Amazon for retail”, stating that fighting against Amazon’s dominance is an “insurmountable lift” for most brands.
- The firm maintains a “Buy” rating on Amazon with a price target of $258.
Financial Insights on Retail Performance
For a deeper financial analysis of retail brands, including market share trends, revenue breakdowns, and financial statements, explore the Full Financials API from Financial Modeling Prep.
