Amazon muscle

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Jonblue Senior Contributor Senior Contributor
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Amazon muscle

Post by Jonblue » Tue Feb 06, 2018 9:41 am

The demise of local shops looks likely to intensify as Amazon beefs up its assault on UK supermarkets - where will it all end? The outcome according to below article is that consumers will have less choice. High Streets as we know them could change dramatically and become one large coffee shop, eating place - although no business appears safe but the biggest casualty could be choice. The Amazon 'tax problem' affecting us all, could also escalate

Scott Galloway is a marketing professor at the NYU Stern School of Business and the founder of business intelligence firm L2.
Galloway appears on this week's episode of The Bottom Line with Henry Blodget and explains how Amazon could eliminate the existence of brands with voice technology. The following is a transcript of the video:

'So I think the biggest thing in technology in 2017 is voice. I think Amazon has effectively conspired with voice and technology and half a billion consumers to kill brands.
When you go into a store, you see the packaging, you see the endcaps, you might see pricing go up and down. All of these things that big brands ranging from Unilever and Procter & Gamble to Kraft and Heinz have spent billions of dollars and generations building.
When you begin ordering groceries and things and CPG products via voice on Alexa, all of those things go away. And if you look at search terms on Google and voice commands on Amazon’s Alexa, the percentage of time that brand prefixes are used in a request is declining. So effectively, I think Amazon has declared war — with the backing of 500 million consumers and a lot of cheap capital — on brands. And we will, using our algorithm, find you as good a product for a lesser price. Amazon will figure out in a nanosecond the best deal and most likely trade you into the highest-margin product for them which will be Amazon toothpaste.'
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Tim Senior Contributor Senior Contributor
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Re: Amazon muscle

Post by Tim » Wed Feb 07, 2018 9:00 am

Yes, eventually the free market leads us to the same place as communism - except the profit goes to the corporation rather than the state.
Whilst a believer in the concept of competition driving innovation and economies, I have long considered that choice is, contrary to popular opinion, one of the biggest problems with the market economy. Yes - it is good where there is a clear differentiation between products (eg do I need a Smart TV or just a screen as my cable box does all the smart stuff? Do I want chicken or lamb?) but choice where it makes no difference is simply a waste.

The example I recall is needing a new toothbrush. The choice in Sainsburys was simply overwhelming. Not only did I spend a lot of time deliberating between different brushes which were all fundamentally the same (the marketing people would have you believe differently, and it may make a difference but it is surely very slight), but no doubt the vast part of the cost in each was marketing/packaging. What a waste!
There are two paths you can go by, but in the long run there's still time to change the road you're on
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Re: Amazon muscle

Post by webmaster » Wed May 09, 2018 4:52 pm

Local shops - use them or lose them!
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Re: Amazon muscle

Post by Benbow » Wed May 09, 2018 6:00 pm

It's just evolution, the way people want to shop changes, when I was a kid the High Street was made up of many different types of shops you had the butchers the bakers, the fishmonger, grocer's and greengrocers the electrical shops the clothing shops etc,etc.
Then along came the supermarkets, people wanted the convenience so used them causing many of these shops to close. The high street has just become a place for chain stores hardly any small family outlets making the high street not a place I want to visit.
Now in this hectic world where people don't have time to relax going to the shops is a painful chore, they want online shopping and home deliveries when it suits them, not when the retailer says, in forty years time things will probably be different again and the likes of Amazon will be a thing of the past like many of the retailers that I new and loved.
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