The Amazon Effect – How The Online Giant Is Seeking To Reshape Private Label
Amazon is an emerging powerhouse in private label, but how does the online retail giant’s strategy differ from bricks-and-mortar businesses, and what can traditional operators do to compete? ESM chats to Natalie Berg of NBK Retail. This article first appeared in ESM Issue 4, 2019.
It’s difficult to talk about retail in any broad context without somebody mentioning Amazon. Such is the online giant’s evolution from bookseller to ‘everything store’ that any manoeuvres by the Seattle-based business into grocery inevitably lead to fears that traditional retail’s sky may be about to fall.
Private label is no different, with Amazon now ten years into a journey that has taken it from everyday essentials (Amazon Basics, comprising accessories such as cables and batteries, launched in 2009) to tailored consumer products, such as Happy Belly (ambient grocery products), Presto (paper products and home hygiene) and Wag (pet food).
As the integration of Whole Foods into its online offering has gathered pace, Amazon has also become more adventurous. Last month, it announced plans to take on drinks giant Red Bull with its Solimo Red and Solimo Silver energy drink products.
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