There is only one thing that is clear today, that is Amazon has changed consumers mind-set on how we shop and where we shop. Very few gave Amazon a shot at success when they started selling books on-line. However, I ask you when was the last time you were in a book store? Do you still go into a bank or do you use a bank machine? The world has changed and Amazon is capable of driving change in any retail sector they choose today according to our own Grocerant Guru™.
Now that Amazon is expanding AmazonFresh around the globe expect consumer trial, adoption and migration to be greater than any legacy food retailer predicts. Thus retail food industry disruption, price competitiveness, and market share leadership will begin to shift according to our team at Foodservice Solutions®. Let’s take a look at why this just might happen.
In a poll conducted by IGD of United Kingdom residents found 35% of online shoppers claimed they “would consider buying fresh food” from the e-tailer (AmazonFresh). Well that is a great start since AmazonFresh has a goal of garnering only 2% of the marketplace. In the UK that market is 8.9 Billion British Pounds.
Then again Amazon was recently voted the UK’s most meaningful retailer, ahead of Marks & Spencer, John Lewis, Aldi and Sainsbury’s in the top-five leaderboard, according to a poll carried out by media and advertising group Havas which indicates that Amazon had a great start and high probability of success.
That same surveyed rated the retailer on making their lives easier as well as marketplace factors such as quality and price. Some 64% of the 300,000 people polled said they would care if Amazon disappeared. Ok, that’s not bad either. Do they say that about your company?
Steve Madler, a retail analyst at Kantar, agrees AmazonFresh wouldn’t be an immediate, dominant force or leader on entering the UK, he still believes there is an opportunity for Amazon to offer an end-to-end dedicated online grocery supply chain.
Still Madler believes “AmazonFresh is faced with strong competition from those legacy retailers who already have a firmly entrenched offer both online and in store,” he says. “Tesco has been doing it for years, Ocado too, while Sainsbury’s and Asda are being very aggressive. Here is what our team says AmazonFresh is fresh and Amazon Prime is the incentive to save time, and money.
Technology may be the way Amazon will be able to differentiate itself further from its rivals, reports also suggest that those Amazon Prime subscribers signed up to use AmazonFresh would receive a wireless device called Amazon Dash that is already in use in the US. It allows customers to scan grocery items to be auto-replenished in their next order, and thereby makes the shopping experience even faster and simpler.
Not only is AmazonDash simple to use it is also cool. Never discount customer relevance. Success does leave clues and Amazon does not rush in than out of an area of service. They are well funded and here to stay. AmazonFresh in three years will exceed all current predictions. Food retailing is dynamic not static.Amazon is one step ahead of everyone else. In a recent Amazon patent application, made public describes a plan for delivering packages via public transit turning buses, trains, subways and other vehicles into roaming pickup locations. Do you need Outside Eyes to drive top line sales?
Since 1991 we have assisted companies grow, expand, and excel within the grocerant niche. Are you ready for Outside Eye’s for inside profits? Have you completed a Grocerant ScoreCard for your company? Are you ready for a Grocerant program assessment? Call: 253-759-7869 today.