Regardless of what you might think of Amazon, in 2017, the internet giant has pioneered more innovations than any other entity. Amazon Flex, Prime Now, and Amazon Fresh are just some of the projects the U.S. company created to explore new ways to provide service and delivery. Added to this mix are Alexa, Echo Spot, and Echo Look, which all help customers with their shopping lists. And now, the Amazon Go Store has finally celebrated its official opening in Seattle.
Time and again, Amazon is being accused of causing the death of retail stores in town centers. But things are not quite so simple, argues Adrian Hotz, an entrepreneur, and visionary.
Mr. Hotz, what challenges do retailers and retail brands face at the Age of Amazonization?
The market is drastically changing because customers are changing the market. Customers order more items than ever before via Amazon. The Christmas season has shown this once again. Customers no longer want to be without this option. This is also why retailers and retail brands draw the following conclusion: the retail infrastructure has been shifting from pedestrian zones to the internet for quite some time now. The reason for this is the consumer and his/her needs.
Conversely, market shares are being redistributed. That is to say, Amazon grows disproportionately in the online retail sector and everyone that doesn’t grow at the same rate loses market shares. The decision of sportswear giant Nike illustrates this point. To catch up in its battle with adidas in the future, Nike now sells a selection of its products directly on Amazon to provide its customers with a better shopping experience. The stock market rewarded this choice. Nike’s stock price has increased after this decision.
Amazon also offers great advantages for startups. One of the best examples of this is the Berlin einhorn Company, a maker of sustainable and vegan condoms. The business initially sold its products via Amazon as part of a program that promotes startups. This company might have taken a lot longer to get onto retail shelves via the traditional market. Meanwhile, the company’s products are now also available at dm drug stores.