|
Article Directory :: Business - General Articles
Often, we remember special Christmas's for the gifts we give and receive. I think this past Christmas will be remembered for the 'gift' Amazon gave the world.
Amazon's new price check app was the most discussed development this Christmas season. It makes the days of that must-have toy or killer electronic game seem absolutely quaint.
Amazon's app, which allows consumers to scan prices in retail stores and then order the item on the spot directly from Amazon, feels like the kind of technological innovation that's a true game-changer. From the moment it was released it put pressure on retailers large and small. Amazon has a completely different cost structure than brick 'n' mortar retailers that gives them an immediate pricing advantage. Add to that that customers don't have to pay sales tax when they buy from Amazon.
Amazon rightly sparked a lot of controversy when it coupled the release of its new app with a $5 off promotion whenever a customer made a purchase using the app. The publicity wasn't all positive, but it was a small price to pay for the competitive advantage that it yielded, particularly at Christmas time.
Amazon's target was clearly the major national retailers, but the long-term implications for independent retailers are just as significant. This new technology has the capacity to reduce all model numbered merchandise, across just about every category, to commodities where fierce price competition, across all channels, between large players and small, is the rule. Those independent retailers who rely on model numbered merchandise for a significant portion of their revenue are just as much in the cross-hairs as the largest national retailer. (As an aside, I'm eager to see how the large national retailers respond over the coming year.)
The good news for many independent retailers is that they rely on assortments that are unique and distinctive. Their assortments are not weighted heavily toward model numbered merchandise. Further, the world of independent retailing is the world of discretionary products, marketed to customers who share a particular passion, customers who are not strictly price-driven when it comes to their passion.
Still, every independent retailer should take the introduction of Amazon's new app this Christmas very seriously. Every independent retailer needs to soberly assess their reliance on model numbered merchandise and the potential risks that the new technology poses. The business models of the major national retailers, who are commodity driven, and independent retailers, who trade in the passions of their customers, are diverging more and more with every passing day. It's imperative that every independent retailer recognize this, and be sure they're on the right side of the divide.
Ted Hurlbut is a retail consultant, coach and speaker who helps independent retailers increase sales, profitability and cash flow by leveraging his deep expertise in the core retail disciplines. To learn more about how you can benefit from Ted's proven retail know-how, visit his website at http://www.hurlbutassociates.com
 EasyPublish™ this article - publishers click here
More articles by Ted Hurlbut
|
Free Report!
Ten Essential Secrets Of Article Marketing ... Grab Your Free
Copy Now:
Need Content?
Regular Top Quality Content for your Blog, Ezine or Website ...
Delivered Direct,
For Free!
Click For Details
Arts & Entertainment
Automotive
Business - General
Computers & Technology
Finance & Investment
Food & Drink
Health & Fitness
Home & Family
Internet Marketing/Online Business
Legal
Pets & Animals
Politics & Government
Reference & Education
Religion & Faith
Self-Improvement/Motivation
Social
Sports & Recreation
Travel & Leisure
Writing & Speaking
|
