Shopper Marketing - January 2017 - 42
and packaged groceries; mail-order delivery of
household essentials; and two-hour delivery of
items spanning 25 categories including household goods and groceries.
While these are all potential positives for
CPGs, Amazon's expansion of private-label
brands is cause for concern. Amazon is already
in the business of making product recommendations based on consumers' browsing and
purchase behavior, and the development of
private labels leverages that capability. "With
all its data, Amazon does not have to guess
what works. It understands what customers
want and can convert them," says Rich Tarrant,
CEO of MyWebGrocer, a Winooski, Vermontbased digital experience platform provider for
CPGs and retailers.
Clearly not just a channel but a competitor
to CPGs, Amazon has already taken market
share from established brands in key catego42
SHOPPER MARKETING JANUARY 2017
ries including baby wipes and batteries, according to the New York-based data analytics
Way Beyond Retail
Coexisting with Amazon entails understanding what it is and what it will become. With
some notable exceptions including Procter &
Gamble and Unilever, established CPG manufacturers "generally lack knowledge of Amazon and e-commerce on their teams," says Melissa Burdick, a 10-year Amazon veteran who
managed more than 300 brands there before
joining The Mars Agency, a global shopper
marketing firm based in Southfield, Michigan.
With Amazon poised to become a major
player in the grocery sector, "CPGs need dedicated resources for this key account and someone who understands how Amazon works,"