Amazon.com Inc. is moving onto Victoria’s Secret’s turf.
The online retailer plans to start selling its own line of competitively priced women’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.
Amazon’s AMZN, +0.74% entrance into the lingerie space presents a challenge for industry stalwarts such as PVH Corp.’s PVH, +3.36% Calvin Klein and L Brands Inc.’s LB, +0.00% Victoria’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 sizing—such as sports bras and bralettes—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 Victoria’s Secret $10 just to produce and ship an underwire bra from a factory in Asia, said people familiar with the matter.
