OK I will say it; I love and hate Amazon simultaneously. Consumers are, by all recent study’s, shopping online, on Amazon, with greater frequency. Retail apparel for example, is predicted to a have a 4.4% growth YoY. Guess where the overwhelming majority of Gen Z (63%) and of Millennial (57%) shoppers are currently shopping for their apparel, Amazon.
It’s easy, quick and shipping can be “free”.
Now here’s the down side,
You control very little of the data. Amazon, Facebook, Twitter, Instagram and all others can literally cut you out of the loop at any time. Ok you say, but I control the customer once they purchase. In a perfect world yes, but you have zero control over the prospective customer that doesn’t buy. No data, no analytics, nada!
Short term profit, long term maybe not.
So you don’t control all the data, but you’re still selling a ton of apparel. You’re killing it.
Guess who knows you’re killing it too? Amazon and they know enough to start knocking of you brand. Retailers like Costco and Trader Joes have been following this play book for years.
Your team does all the heavy brand lifting, risks capital and time, establishes market penetration, by using one of these easy to market platforms you may be helping drive sales.
But just like eating cheap pizza, it may satisfy in the short run, but eventually it will make you fat, give you more chins than the Chinese phone book and require at least one heart transplant. It’s fricking unhealthy for sustainable growth.
There is an answer,
Develop your own brand and database. Use Amazon, to off load last year’s fashion, test new styles, control bloated inventory but don’t let them use you.
Multichannel marketing, strong database management and analytics can keep brand identity, stabilize and help increase margin.
Through coordinated multi-channel marketing with rich content, good brands can grow and expand. Or you can just keep eating pizza.
Peter Pohl,
President Value Source Group
Recent Comments