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UK Insights

What next for Amazon?

Steve Mader

Vice-President, Digital Insights

Business Retail 03.03.2014 / 12:29


Kantar Retail looks at how Amazon’s dominance in the US translates to Europe

Amazon dominates US ecommerce and Kantar Retail is predicting Amazon will grow to be a €100 billion retailer by 2016. By 2020, we predict 10% of all retail sales will be transacted online and by the end of 2014 50% of all purchases (both online and in-store) will be influenced by digital touchpoints. Amazon will be the driver of this change, and the catalyst for organisational change within many branded manufacturers. Any business trying to compete for today's digitally connected shopper will require a fundamental understanding of "Earth's most customer-centric company" and its business model.

At the centre of Amazon's customer-centric strategy is its membership programme Amazon Prime. Amazon uses Prime as the intersection between its retail offering and all the other services it has been investing in, such as: video, music and books. At the end of February Amazon announced that it will be bringing Amazon Instant Video to the UK and Germany, signalling that the retailer feels comfortable enough in its content portfolio to begin to bring its US video offering to Europe. This is critical as it is one of the most crucial offerings for Amazon to begin grabbing additional share of life from its most loyal shoppers. 

Amazon is also diving head first into grocery with Amazon Fresh in the US and they will eventually bring that model to Europe, by 2020 Amazon could be one of the top 10 grocery customers. With London, Paris, and Germany in its sights, Amazon will be looking to bring the best of van-based grocery delivery with the ability to conveniently deliver its existing assortment of millions of general merchandise products. This will be a complete game changer to the European grocery landscape, and suppliers must be ready to lead the charge rather than follow.

Source : Kantar Retail

Editor's Notes

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