One of the greatest fears of the Aussie retail section is the launch of Amazon down under. But thanks to our partners at SpotLite, there is a way to stay ahead, and in business.
Amazon has announced plans to flood the Australian retailing industry with a new depth of competitive intensity that will make it difficult for many retailers to keep their heads above water.
This huge online shopping mall has worldwide sales in excess of $100 billion. As a force in business disruption it makes Airbnb and Uber look like lunch breaks.
The Amazon business philosophy is powerful yet simple. They give absolute priority to the consumer at the expense of shareholders. So they put more money into lowering prices and optimising customer service and less into profits and shareholder dividends.
Amazon has built a reputation for the world’s lowest prices and best fulfilment system. Its Prime Now service in the US promises delivery in some cases in as little as one hour. It is the catalyst for a dramatic increase in competitive intensity wherever it goes.
It has been highly successful in North America and Europe, so what are the prospects for Australia?
Not so high, according to Roger Corbett, one of Australia’s leading authorities in the field, but still pretty formidable. He believes that the existing competition Amazon faces here is stronger with attractive customer-orientated stores and in addition the local geography will provide a greater challenge for their fulfilment capabilities.
There is no question however that Australian retailers from corner store to superstore face a trading revolution that could find them out of their depth if they haven’t already taken steps to reach competitive high ground.
Not only will the Amazon juggernaut comprise their own core businesses like books and groceries but other retailers will be offered access to their platform gaining the benefit of their services and pulling power.
Credit Suisse estimates that Myer for example could lose 55% of their profit within five years of the Amazon launch. Their underlying message however is that retailer proaction is infinitely preferable to reaction.
Experts believe that proaction doesn’t necessarily mean absolute price and service competitiveness with Amazon but rather developing an effective total marketing package and a flexibility geared to fast decision-making.
That’s where SpotLite comes in.
SpotLite is a real-time price-tracking platform that provides pricing intelligence across competitors and channels for all retail outlets or brands in required market sectors at intervals from one hour to twelve.
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Fast decision making will be crucial to competitiveness and profitability in the Amazon era and SpotLite is the standout source of information necessary to base it on. It facilitates decisions not just on pricing but promotional initiatives, advertising campaigns and new product launches as well.
Most significantly Amazon will have the effect of promoting price to an unprecedented level of influence both in customer purchasing decisions and also marketing decisions.
SpotLite is a state-of-the-art development from the Invigor Group, long established leaders in market intelligence and data analytics. It fits any market size, any industry and any geography and comprises pricing data from any online source.
It delivers complete, accurate and real-time price monitoring more cost effectively than anyone else.
Go to www.spotlite.com.au, select the SpotLite package that best suits your needs and commence a free 30 day trial without even having to furnish a credit card.
The sooner you start making SpotLite-enabled decisions the sooner you will be equipped to go with Amazon flow both in the current and the future.