How Amazon Competes and How to Compete With Amazon

This will be a short article that may lead to a deeper investigation and white paper.

What is Amazon doing besides just selling stuff online that competes with other players?

How are other players competing with Amazon in ways that may or may not include selling online?

Let's take a look at a few examples.

First Amazon.

They are masters at taking something they already do and monetize it in a new way.  They had massive data centers providing web service to Amazon.com that was mostly not in use.  They needed the massive power for their busy times.  Why not sell it as a service?

Amazon Web Services was born and now you too can host anything you can dream of in "the cloud".

This was quickly followed by others.  Microsoft Azure has found its place and there are countless players in the space now.

Here is one way Amazon is vertically integrating, taking some upstream or downstream product or service and creating a way to do it themselves.  Package delivery.

Amazon Orders Vans for Prime Delivery

Next are a couple of players that took Amazon eCommerce ideas and started providing the same solution for others.

This company is called Mirakl, a Paris based company, that has created a platform for other eCommerce sites to add resellers, just like Amazon.com does. They're the only player in the space and are big already, especially in B2B, and will be growing dramatically in the years ahead.  I promise you.

https://www.mirakl.com/

Next is a similar concept.  The product reviews that worked so well on Amazon.com became something you can add to your own eCommerce site.  Now there are multiple other players in this space but the original may still be the best.

https://www.bazaarvoice.com/

I think these responses are the correct path for all but the largest retailers.  I used to refer to retailers in a Tier level segmentation, Tiers 1 to 5.  Tier 1 was Walmart while Tier 5 was the local YMCA Christmas Tree sellers. I think there is now a super-tier reserved for those who do brick & mortar well, digital well, and eCommerce well.  How can smaller and regional players compete?  Third party providers.

Here is a great example:

https://www.retaildive.com/news/perfect-corp-rolls-out-makeup-ar-tool-for-small-businesses/559242/

Hope this gave you some food for thought.

Happy Reading,

J.W. Gant

Probes of Big Tech Coming

This headline says quite a bit, especially given the toxic political environment in the United States today.

AG Barr Promise to Probe Big Tech Unites Democrats and Republicans

Well then.  I guess this is happening.

The question of technology's place in our world, in our society, our laws, our forms of government, and much more, has been growing as the impact becomes more understood.

What is government but a place where the voice of the people can be heard?

Happy Reading,

J.W. Gant

Personalization in Marketing

I have seen first hand how merchandisers are so busy they can barely begin to move forward on future-leaning initiatives.

Missing out on personalization is a big miss however and should not be allowed to happen.

Salesforce estimates that adding Einstein personalization to your marketing sorting rules for grid pages, PLPs, will have a positive impact on revenue in the range of 6-9%.  Why leave that money sitting on the table?  Companies such as Certona are thriving on doing the work for you.  Just set up a data feed of your order history and the company will personalize recommendations, resulting in a revenue lift.

Oh, did I mention Amazon is in that game too?  Yeah.  Another threat from Amazon.  Just what you needed right?

Do it.

Here is a story on the subject of how marketers are failing to make this a priority:

https://www.clickz.com/personalization-powerful-priority/243913/

Here is a snippet from the piece:

It’s been a big news week for Amazon. The ecommerce giant’s shares have surpassed those of Walmart. Amazon announced the end of its restaurant delivery service, while launching a credit card an AI-powered recommendation service to improve personalization. Oh, and thanks to a 52% year-over-year increase in brand value, Amazon displaced Apple at the top of WPP and Kantar’s annual ranking of the most valuable brands in the world.

The latter two are certainly related. Available in a handful of regions for now, the recommendation service enables marketers to incorporate product recommendations and tailored search results on websites, in apps, and within content management and email marketing systems. It’s called Amazon Personalize, a nod to the company’s signature move.

Happy Reading,

J.W. Gant

PS I found this great little complementary article that is also worth your time, especially if you are in the supermarket industry.
https://retailleader.com/personalization-digital-food-retailing

BRotD - Entry 0259 The TV Bundle

Best Reading of the Day

One of the more interesting ongoing stories in the Age of the Customer is the ongoing revolution in "Television".

Can we call it TV if we watch a streaming video on our phone?

Anyway ...

This great read tell the history, the current situation, and where we are headed.  Well worth your time.

https://www.vox.com/recode/2019/5/2/18518666/bundle-tv-hbo-disney-netflix-apple-amazon-war

Here is a snippet from the piece:

Now you have more TV than you could possibly watch, for less than $50 a month, and we haven’t even gotten to the free stuff yet. The only people who will feel truly left out here — besides people who work in the Television Industrial Complex — are the ones who want to watch live major league sports or live news from traditional TV networks.

Happy Reading,

J.W. Gant

New Streaming Video Services

With the news from Apple's big event today you would think I would write about the new AppleTV streaming service.

Nah.

Amazon is the really interesting kid on the block to look at.

Why?

Data.

I've heard Amazon employees talk about swimming in oceans of data.  Outside looking in we have little idea what they have on us.  Let's take a small look at that and how it gives them a competitive advantage in streaming video services.

Read a part of the story here:

Facebook knows who you want to be, but Amazon knows who you really are,” says Alan Wolk, Co-Founder and Lead Analyst at TVREV, a TV- and advertising-focused analyst group. “People may like Starbucks on Facebook even if they only go three times a year, but Amazon knows they have a standing order for Maxwell House. The advantage for a lot of these franchises is, Amazon can sell a lot of merchandise and a lot of ads.”

That point extends far beyond The Lord of the Rings. Sports content is another big entertainment focus; Prime members can stream Thursday Night Football. Last week, the company also reportedly reached a deal with the New York Yankees and Sinclair Broadcasting to purchase the YES Network.

“Amazon knows who’s tuned into the Giants game,” says Wolk. “When Eli Manning goes for a touchdown, they can put jerseys on sale and see if people buy them if they’re $38 or $40. Do they buy two minutes after the touchdown or five? It’s scary how much they know about everyone.”

Here is the full story:

https://www.clickz.com/amazon-entertainment-advantages/228248/

Here is a piece on how Apple's new streaming service might lead to an Apple Prime membership:

https://www.zdnet.com/article/why-apples-streaming-video-service-should-lead-to-apple-prime-subscription-bundle/

Oh, and, here is a piece on AppleTV's new streaming service:

https://thenextweb.com/plugged/2019/03/25/apple-tv-gets-an-overhaul-is-now-available-on-more-devices/

Happy Reading,

J.W. Gant

Best Retail Mobile Apps

I happen to think the world of retail is as competitive as it gets with some of the best minds and the best business plays happening.

A look at retail mobile apps is worth your time and this article by the folks at ClickZ uses the Forrester research to help you gain a view:

https://www.clickz.com/retail-mobile-apps-forrester/227758/

Here is a snippet from the piece:

What makes a retailers’ mobile app great? That question has been asked by countless marketers (and by, um, us) over the years. Forrester Research tackled it in a new report that retailers’ mobile apps, and where they excel and miss the mark.

Mobile commerce is perpetually on the rise. During Cyber Monday, smartphone sales accounted for $2.1 billion, a 48.1% growth year-over-year. And according to eMarketer, more than 90% of our time on smartphones is spent in-app.

Here’s the catch: We’re also highly selective about the mobile apps we use. App downloads keep increasing, but users’ interest disappears as quickly as a Snap. In 2017, App Annie found that the average smartphone owner only uses 30 per month and nine per day.

When Apple revealed the most popular apps of 2018, Amazon was the only retailer on the list, which was dominated by social media and entertainment. In order to command consumers’ attention, retailers have to make sure their apps are top notch.

Happy Reading,

J.W. Gant

Amazon Pay In Store

Move over Apple Pay?

Move over Android Pay?

Move over Samsung Pay?

Move over Walmart Pay?

Amazon is on the move.

Not so fast, I say, but this move makes sense.  This is very much like what PayPal was trying to do when it created Samsung Pay.  They have countless payment methods on file for online payment.  Why can't they get those payments used in the store?

Because they are very different worlds that's why.

Read this snippet here:

Amazon has found a new target to tackle in its continued pursuits to dominate retail: in-store mobile payments.

Amazon has been talking with brick-and-mortar retailers to convince them to adopt Amazon Pay, the e-commerce giant's online-payment option The Wall Street Journal reported. The service has so far been touted as a payment option similar to PayPal for shopping online, but the Journal reported that Amazon is looking to expand Amazon Pay capabilities.

Here is the full story:

https://www.businessinsider.com/amazon-to-challenge-apple-with-in-store-mobile-payments-report-2018-11

Happy Reading,

J.W. Gant

Alexa in Hotels

"Alexa, get me room service please."

"Dialing room service."

Is this what you want in your hotel?  Have I some news for you!

Me, I find the idea of a device constantly listening for you to talk to it to be a bit creepy.  Pass.

Read on:

https://gizmodo.com/alexa-for-hospitality-lets-amazon-follow-you-on-vacatio-1826947384

Here is a snippet from the piece:

For those averse to talking on the phone, hotel stays can resemble a war of attrition, testing your mettle to see how long you’ll go without calling the front desk and admitting you forgot to pack your toothbrush. But Amazon’s new Alexa for Hospitality service, which puts an Echo device in your hotel room, might let you avoid the conversation altogether, and let you bring a bit of your always-on, always-listening, always-spying smart home with you. So don’t do anything stupid.

Happy Reading,

J.W. Gant

BRotD - Entry 0259 Regulating Technology

Best Reading of the Day

"Robber Barons"

That's what they were called.

In the late 1800s they industrialists who used questionable methods to get rich came to be known as robbers. 

Here is a bit more on that subject:

https://en.wikipedia.org/wiki/Robber_baron_(industrialist)

That is the language now in use to describe Google, Facebook, Amazon and more who have convinced the masses of the population to hand over their valuable personal data for free.  Time for regulations of these giants in technology?  There is an argument to be made.

Read more here:

https://www.technologyreview.com/s/611425/its-time-to-rein-in-the-data-barons/

Here is a snippet from the piece:

When Mark Zuckerberg appeared before Congress earlier this year to discuss how the now-defunct political-data company Cambridge Analytica acquired data of up to 87 million Facebook users without their knowledge or consent, one of the few pointed questions came from Lindsey Graham, a Republican senator from South Carolina. “Who’s your biggest competitor?” Graham demanded. After Zuckerberg replied that Google, Apple, Amazon, and Microsoft all had some overlap with various Facebook products, Graham chafed at the answer.

“If I buy a Ford and it doesn’t work well and I don’t like it,” pressed the senator, “I can buy a Chevy. If I’m upset with Facebook, what’s the equivalent product I can go sign up for?”

Happy Reading,

J.W. Gant

BRotD - Entry 0258 Retail and the Startup Competitors

Best Reading of the Day

The ultimate goal for the creators of goods, manufacturers and brand owners, is the direct to consumer relationship disinter-mediating the retailer that has gained so much power and leverage the last 40 odd years.  I've been very interested in this for a few years now and new stories on the subject catch my eye.

Similarly you see pure digital retail companies starting up as well. Think Amazon.com as it started out, not the behemoth it has become.

Here is a great little write-up that intends to help retailers understand the "digital native" company and what can be learned from the approach.

https://www.mytotalretail.com/post/digital-native-brands-the-almost-new-face-of-modern-marketers/

Here is a snippet from the piece:

There's lots of buzz surrounding digital-native brands and what's making them so disruptive and relevant today. While the definition of digital native is evolving, they are companies that launch as web-only retailers with the belief that superior technology can be a differentiator. They often engender loyalty by projecting authenticity and effectively leveraging social media. More importantly, they believe in a few core operational traits that can serve as a template for larger companies to try to emulate.

The modern retailer has a whole new series of competitors and threats to it. The savvy management group will be looking at all of these and determining the firewalls to place, the areas to compete directly, and the technology investments to make (once the best people are in place) to remain competitive and give customers what they want.

Call it 'Bricks & Mobile' or all it 'Omnicommerce' or anything else you want just be where the customer wants and needs you to be.

Happy Reading,

J.W. Gant

Whole Foods After Amazon

Where do you shop for your food and "super" market needs?

Whole Foods?

Before Amazon bought it or after or both?

What has changed?

Take a look:

https://www.boston.com/news/food/2018/03/01/amazon-whole-foods-changes

I think it is safe to say this is only the beginning.  One becomes the other and the other becomes the one.

Happy Reading,

J.W. Gant

Target's Profits Down

Target is in a bit of a hard spot.

Amazon on one side.

Walmart on the other.

A changing industry heavy on digital technology, ecommerce, and changes in the store experience.

Not everyone is going to get it right and the legacy merchants are going to have to craft a new path forward.  Target's efforts resulted in a problem in its profit as it missed efforts.

Great analysis and an interesting look in to what is happening in retail in the United States today:

https://www.bloomberg.com/news/articles/2018-03-06/target-s-turnaround-plan-weighs-on-profit-as-it-chases-amazon

Happy Reading,

J.W. Gant

Improving Retail Mobile Apps

Continuing the discussion on retail mobile apps.  I've been in and around this game for many years.  What I see is a new kind of "Tier 1" retailer. 

There's the classic Tier 1, but then there is a superpower level.  That retailer has it all: great retail stores, great mobile app, great online shopping.  Which ones qualify?  Walmart, Amazon, Target, Starbucks .... anyone else?

Here is the story:

https://www.clickz.com/retailers-improve-app-experience/207018/

Here is a snippet from the piece:

Most retail apps leave something to be desired, according to Jim Cusson, President at retail marketing agency Theory House.

“I think of that quote from Field of Dreams: ‘If you build it, they will come,’” he says. “A few years ago, there was this rush to build apps and everyone wanted one, whether it had a true purpose or not. You see a lot of injured soldiers on the battlefield now because companies have invested money in an app that’s obsolete.”

Happy Reading,

J.W. Gant

Retailers and their Mobile Apps

Recently found a great little website for all things related to digital marketing.  Worth checking out:

https://www.clickz.com/

Here's one of the stories that grabbed my attention.  6 retailers who have outstanding mobile apps:

https://www.clickz.com/6-retail-brands-nailing-app-game/207024/

Here's a snippet from that piece:

Earlier this year, the app market data and insights company found that the typical consumer uses 10 apps per day. For most people, it’s unlikely that many of those 10 are retail apps. Amazon is the category’s sole representative on Apple’s Top Chart.

Happy Reading,

J.W. Gant

Search for Shopping Tilting Back to Search Engines from Amazon

What happens when you open a search engine such as Google and type in a product you want to buy?

For many years now you've largely been provided links to related products on Amazon.com.

As the world has shifted to mobile consumption of the internet certain challenges and opportunities have presented themselves to digital companies.  Google has altered its approach to search to be far more mobile friendly.  The result?  Click-throughs are now much more likely to go to Google than straight to Amazon.

Read the full story here:

https://www.retaildive.com/news/amazon-slipping-in-search/513775/

Here is a snippet from the piece:

Amazon is slipping when it comes to search. The e-commerce giant took 49% of consumers’ initial product searches, down from last year’s 55%, with search engines taking 36% (up from 28% last year) and other retail sites taking 15% (16% last year), according to a study by consumer research firm Survata first reported by Bloomberg.

It is important to note that Amazon is still getting about half of all such clicks.  Very strong, but declining and that is significant.

Happy Reading,

J.W. Gant

PS  This may be my final post from 2017.  Hope 2018 is a great year for everyone.

TargetPay is Here - Wallet

Following years of investment in mobile wallet through the now sold off MCX and the CurrentC mobile payments solution, and well after Walmart enacted its Walmart Pay solution Target has theirs in place. They call it simple "Wallet".

This is the beginning of furthering a huge divide between the top of the Tier 1 retailers and everyone else.  We may need to create a new designation like "Super Power" when mere "Major Power" was no longer enough.

The biggest merchants will have a strong physical presence, eCommerce presence, vertically integrated merchandising, strong mobile, and strong mobile wallet capability. Think Amazon and Walmart.  Now Target.

Everyone else?  Well, this speaks to the huge need for a white label solution for all of those merchants not big enough to handle all of this on their own.

Anyone?

Here is the story:

http://www.businessinsider.com/targets-mobile-wallet-is-finally-here-2017-12

Here is a snippet from the piece:

Target launched its long-anticipated mobile wallet for in-store payments on Monday, according to TechCrunch. The product, which will be barcode-based and housed in the existing Target mobile app, is known as Wallet. Two key features distinguish Wallet and could help optimize it for use:

The wallet is only available to store cardholders.

...

That’s especially true because it expands upon existing app functionality.

...

Happy Reading,

J.W. Gant

Amazon - Black Friday and Cyber Monday

Two stories from Business Insider tell this story.

First up is how Amazon did on Black Friday and if you had any doubt, they rocked:

http://www.businessinsider.com/amazon-dominates-thanksgiving-and-black-friday-online-sales-2017-11

Here is a snippet from the piece:

Amazon pulled in 45% of all online transactions — or purchases — on Thanksgiving Day, and 54.9% on Black Friday, according to Hitwise data cited in Dealerscope.

Next is Amazon on Cyber Monday ... and ... they rocked:

http://www.businessinsider.com/amazon-says-cyber-monday-is-biggest-shopping-day-in-history-2017-11

Here is a snippet from the piece:

Amazon says Cyber Monday was its biggest shopping day in company history.

"Amazon customers shopped at record levels... ordering hundreds of millions of products from toys to fashion to electronics and Amazon devices," Jeff Wilke, Amazon's head of worldwide consumer, said in a statement. "Customers ordered nearly 140 million items from small businesses alone and this is just the beginning of the holiday season."

Happy Reading,

J.W. Gant

67% eCommerce Growth at Walmart

Now that's news for the day!

Huge growth at Walmart online.  Think the Jet.com acquisition is paying off?

Maybe?

Yeap.

Here is a snippet from the piece:

Walmart continues to invest heavily both in-store and out to redefine the shopping experience and blur the distinction between digital and physical retailing.

As the world’s largest retailer continues its fight with Amazon for consumers’ hearts, minds and wallets, the customer ultimately wins ― new solutions provide a seamless path to purchase and bring a new level of excitement to the shopping experience.

Here is the whole story:

https://risnews.com/walmart-posts-enormous-67-e-commerce-growth

Happy Reading,

J.W. Gant

Sears - A History

I thought I had nothing else to say, or read, about this story except the (surely soon to happen) looming bankruptcy.  Then I found this little piece by the New York Times that tells their whole story in brief.

Great little read.

Here is a portion of the piece:

Imagine a retailer that began by specializing in just one product, then grew into a mammoth that redefined the American shopping experience.

Among its innovations: No matter where you lived, it shipped your order directly to you, whether you were looking for cast-iron cookware, a mandolin, the newest technological marvel, or the latest in petticoats.

Amazon, right? Actually, it was Sears — a century ago.

Here is the full story:

https://www.nytimes.com/2017/08/11/business/the-incredible-shrinking-sears.html?mcubz=1

Happy Reading,

J.W. Gant

BRotD - Entry 0254 Consumer Brands and Their Customers

Best Reading of the Day

This excellent article on HBR.com is well worth your time.

As I wrote about some time ago the new digital era creates risks and opportunities for a shifting landscape.  This is the first solid analysis I've seen on Amazon's recent moves to help Consumer Packaged Goods (CPG) companies interact more directly with customers.

Here is a snippet from the piece:

When news broke earlier this year about Amazon’s courtship of some of the world’s biggest consumer packaged goods ... brands, it touched off a wave of speculation. Was the e-commerce giant engaged in a long game to alter the relationships between consumer goods makers and their brick-and-mortar retail partners?

However it plays out, Amazon’s outreach exposed a digital divide in the consumer products world. On one side is the growing interest of brands in direct-to-consumer (D2C) models. On the other side are persistent worries about conflict — not just with traditional distribution channels but also with retailers carrying the brand.

Here is the full article (you may have to create a login to view it):

https://hbr.org/2017/08/how-consumer-brands-can-connect-with-customers-in-a-changing-retail-landscape

Happy Reading,

J.W. Gant