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.
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