14 Jun 2024 23:40

Advertising & Marketing

New trend report: Amazon everything

From our homes to our healthcare, Amazon is seeping into every aspect of consumer lives. What’s next?

Amazon Everything, a new report by J. Walter Thompson’s Innovation Group charts Amazon’s impact on consumer behavior and expectations, looking at what the giant retailer is up to now and next. Download the complimentary report here.

“Amazon is in the middle of an ambitious multiyear shift from a store selling one product at a time to a full-fledged ecosystem. Amazon wants to be so deeply embedded in a customer’s life that buying happens as naturally as breathing, and nearly as often.” says David Streitfeld, The New York Times.

It’s hard to overestimate the size and influence of Amazon. The company has gone way beyond its role as a global e-commerce giant and has evolved into an entertainment, data, logistics and lifestyle powerhouse, and its offering is more diverse and ambidextrous than ever. In less than 25 years, Amazon has gone from being an online bookseller to a behemoth worth over $350 billion—more than Walmart, Target, Best Buy, Nordstrom, Kohl’s, JC Penney, Sears and Macy’s put together.

By fully integrating with our lives, Amazon has transformed our shopping expectations. Free delivery is now a basic standard. And the ability to deliver within two hours has become a necessity, not a luxury, because of Amazon Prime Now—free to customers who subscribe to the Prime service. While other companies struggle to catch up, it takes little time for Amazon’s new initiatives and gambles to become an indispensable part of our lives; according to founder and CEO Jeff Bezos, “tens of millions” of Amazon Echo voice-controlled devices have been sold since their introduction just over three years ago. The friendly voice of its Alexa personal assistant has normalized spoken commerce and hyper-personalized recommendations, with the Echo Look “style assistant” the latest development.

Amazon is also transforming our relationship with brands by launching its own versions of consumer favorites. Some are explicitly labeled as such, including AmazonBasics, a value range of everyday items including batteries, computer accessories and pet food, and Amazon Elements, a premium range of vitamins and supplements with an emphasis on transparency. Other Amazon products are less obvious. Mama Bear is Amazon’s line of diapers, launched in 2017, Presto! offers cleaning products, while Wickedly Prime is a range of gourmet snacks and beverages. More recently, the company has been introducing a raft of premium private labels that look and feel like aspirational brands, competing on price and desirability in the athleisure, beauty and personal care sectors. Examples include Dear Drew, Drew Barrymore’s fashion and jewelry line, fitness labels Peak Velocity and Goodsport, and homeware line Stone & Beam.

By spreading its focus across all price points, Amazon is positioning itself as a competitor to some of the best-loved brands on our shelves. Download the full report here.

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