Amazon’s share price keeps on rising and some analysts now speculate that Bezos’ aim is to create the first trillion dollar company in the world.
For this to happen the US$800bn food sector finally needs to be cracked by Amazon and our latest report lays out how this will happen.
The shake up will be radical and leave many failed b&m retailers in its wake.
The strategy is to meet every distinct shopper need and mission with a dedicated Amazon business unit (from pantry to .com to dash, echo to subscribe & save to prime Now to Fresh).
Fresh is the jewel in the crown, with self selecting prime membership skewing to the premium end, the most valuable shopper to have.
FMCG and other retailers should remember that Amazon will leverage its platform and marketplace model and that the threat will not only come from 1P, but from the multitude of artisanal players (butchers, bakers etc) Amazon will recruit to its ecosystem.
Amazon knows their shoppers already - from their past purchases and their digital footprint and they know shoppers much, much better than the competition. For Amazon it is now simply a matter of upselling.
What can the rest of the industry do now?