What is the effort to build the Amazon empire seen in the acquisition of Amazon's 1 trillion yen Whole Foods?

Amazon is a huge sum of 13.7 billion dollars (about 1.5 trillion yen) and a luxury super "Whole Foods"Was put under umbrella. The incorporation of a luxury super has raised the synergistic effect as expected. However, Amazon's aim is not only the direct things that market participants expected, but also that there is an aspect of means for achieving a more spectacular goalAtlanticPointed out.

The Amazon - ification of Whole Foods - The Atlantic
https://www.theatlantic.com/business/archive/2018/02/whole-foods-two-hour-delivery-amazon/552821/

In 2017, Amazon acquired the high-end super Whole Foods with the largest ever 13.7 billion dollars (about 1.5 trillion yen), but despite huge acquisitions, market players are confronted with Amazon and Whole Foods It was very predictable that it would be an investment that matched the amount. There were three major reasons for this, says Derek Thompson of Atlantic.

First, the advantage of being able to lower the price of high-quality, high-priced Whole Foods foods by taking advantage of Amazon's overwhelming sales force's profit. Secondly, it is possible to use 400 real shops Whole Foods has in the United States and Canada as a "distribution node" that stores products sold at Amazon.com, and as a third merit, high quality and high It was said that business opportunities can be expanded by the new business style of Whole Foods which obtains evaluation by way of home delivery.


Looking at the efforts of Amazon + Whole Foods so far, analysts' expectations were roughly correct, Mr. Thompson said. Amazon, one after anotherReduced the price of popular products of Whole FoodsIt is said that they are building an on-demand food delivery service network by using Whole Foods stores. According to a survey by Euromonitor, a survey by a research firm, the food delivery service is estimated to be a promising market with a growth rate of 15 times over the next 10 years, compared to restaurants and other food service industry, growth of food delivery service started As a result, Amazon's efforts are thought to be timely.

And Amazon will target Whole Foods products on February 8, 2018, Prime Now in some areasAnnouncementDid. In the four cities of Austin, Cincinnati, Dallas and Virginia Beach, Amazon Prime members can purchase Whole Foods' food for more than $ 35 (about 3900 yen) and they will be shipping free within 2 hours. Also, if you pay a delivery fee of 7.99 dollars (about 900 yen), express delivery within 1 hour is also possible.


Mr. Thompson points out that this Whole Foods entry into Prime Now is premature to grasp as just news. According to Mr. Thompson, Mr. Thompson thinks that it is a clear sign that Amazon 's aim "Retail Empire" is steadily being built up.

Amazon starts selling books online and sells and delivers everything such as household goods, medicines, food and so on, with movie content in Prime video, music content in Amazon Music, and even limitedFollow Health CareWe are expanding our hands of business until we do. In addition, the smart speaker "Echo" using the AI ​​Assistant Alexa continues to improve so that users can purchase many of these items, and vertical integration of software and hardware is steadily being executed. Amazon is certainly looking at 'value' that Amazon's priced members of Amazon Prime, which is a fulfilling service offering all kinds of services, use Amazon for lifetime and continue to drop money, making the privilege of Prime members warm Thompson says that is the most important thing for Amazon.

For Amazon, the acquisition of Whole Foods is not just the merit that analysts expected to raise the value of Whole Foods and generate revenue, but rather a way of thinking that it is a way to increase the value of Amazon Prime. What Amazon aims for, which is aimed at all retailers as a whole, is to buy behaviors of people in the ultimate world, rather than searching for products on Google and searching for desired items first at Amazon and purchasing them as they are . When the Prime member speaks to "Alexa, you need pork and brown rice", the situation that the Whole Foods brand of rice and pork can be delivered in Amazon's box within 2 hours has already been realized.

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Continuing to raise the value of Amazon Prime is the way to build a retail empire, so if that is the case, you will pay over 1 trillion yen of extra money, which will be paid by importing high-end supermarkets. According to Mr. Thompson, customers at Whole Foods have a "cult" devotion that is willing to pay a lot for high quality food. And Amazon Prime members who aim to become "the company that counts customers the most on the planet" can also be said to represent a cultural dedication as well. Amazon may continue to expand Amazon Prime's "privilege" to continue satisfying the cult member dedicated Prime members.