Potentially bad news for retailers.
From an analyst perspective, Amazon offers a winning formula to Aussie shoppers, according to Euromonitor International senior research analyst, Hianyang Chan (pictured).
“Amazon’s philosophy is to understand what consumers want and work backwards from there. Shoppers in Australia and globally are often indecisive, demanding and display little loyalty. If Amazon or any other retailers are able to offer a balance between a great selection, convenience and low prices, they might potentially have a winning formula to capture the consumers and effectively pit oneself against other retailers in the extremely competitive Australian retail landscape,” he said.
Fat Prophets head of research, Greg Smith told Appliance Retailer that Amazon will certainly shake up the retail landscape and expects the online retail giant to make substantial in roads across the retail spend spectrum over time.
“Convenience and price will be a key positive for shoppers and an annual subscription fee will encourage loyalty. Therefore, it may be bad news for bricks and mortar retailers already struggling to adapt digitally, facing intense competition and pricing pressures. Retailers will have to adapt their business models or perish.”