Shopper Marketing - August 2017 - 31
Luminess populates its detail pages on Amazon.
com with relevant product information, highresolution color photography and professionallooking video demonstrations.
Amazon can leverage its massive reach
and database of online browsing behaviors in an appeal to potential display advertisers - and beyond. Voice analytics
firm VoiceLabs recently began testing
15-second sponsored ads on Amazon's
voice assistant Alexa that allow consumers to ask questions and receive information about the products.
Retail Is Reeling
Amazon continues to upend brick-andmortar retailing as its latest move to
purchase Whole Foods has thrown the
entire industry into disarray. (For more,
see "Who's Next?" sidebar on page 29.)
Over the past year, Amazon's impact has
been apparent in the financial woes of
major department stores and bankruptcies of some apparel and sporting goods
retailers. It has also spurred multibilliondollar investments in e-commerce from
Walmart and Target, who must now be-
come more flexible on procurement and
pricing in everything from household staples to fresh grocery in order to combat
Amazon's sizable deflationary forces. As
part of its ongoing battle with Walmart,
Amazon recently lowered the minimum
threshold for free shipping to non-Prime
members to $25 and began offering significantly discounted Prime memberships to low-income shoppers.
"In disrupting the marketplace, Amazon has raised everyone's game," says
Heidi Froseth, EVP, national shopper
commerce practice leader, Catapult.
"They have a leadership mentality that
everyone is paying attention to and
learning from - or it's creating tension
within organizations to drive innovation.
CPG and retail brands alike across established, nascent, traditional and specialty
categories are taking significant action
to close the gap with Amazon."
Amazon also now poses a clear threat
to traditional supermarkets. Legacy retailers with underdeveloped e-commerce
programs (e.g., Supervalu, Albertstons/
Safeway) are facing the greatest immediate danger, but even more established
e-commerce players like Kroger will be
forced to accelerate digital investments
and expand click-and-collect services
much faster than previously predicted,
says Steve Abdo, SVP, grocery and value
channel leader, at Catapult.
"Kroger remains very strong in natural and organics, which is ironic because
much of that strength originated four
AUGUST 2017 SHOPPER MARKETING y