As Amazon still has a target to be robbed "91% of retail market" has pointed out that "Amazon has just begun"

Byec_times

Amazon, which has controlled the online shopping market, has expanded its business scope and has advanced into various fields. Among them, it is inevitable that Amazon's full-scale entry into the "huge store real retail" than the online market is inevitable, therefore, Amazon's success story is still a prologue.

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https://www.theguardian.com/technology/2018/apr/24/amazon-jeff-bezos-customer-data-industries

Based in San Francisco, USARain DesignHas sold laptop stand "mStand" on Amazon.com and succeeded so long as to be given the title of best-selling product for a long time. Rain Design, which has been selling well on Amazon.com for almost 10 years, was Rain Design, but the situation has changed significantly as Amazon itself began selling products similar to mStand on Amazon brands. It is almost the same function and design with just the same function and design as "only changing the rain grain logo to the Amazon logo", but since mStand is $ 39.99 (about 4400 yen) and Amazon stand is 19.99 dollars (about 2200 yen) and half price, Rain Design It is clear that we are forced to struggle with sales competition in the future from seeing fire.


It is not uncommon especially for Amazon to release the exact same Amazon original product as the bestseller product. As Amazon can accurately grasp what it sells from Amazon.com's customer data, in just a few weeks it is possible to sell copies of bestseller products on Amazon brands.

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Amazon keeps track of what people are looking for and what they are clicking on. Even if you do not click anything, Amazon understands that there is a gap (gap) there. Rachel Greer, formerly Product Manager at Amazon, says "What Amazon had to do was to find and copy the best things." If you compare Glar said Mr. Amazon, it is a greedy hopper shark.

As a weapon of data, Amazon has entered various fields such as music streaming service, game live streaming service, food delivery service, housekeeping substitution service, as well as on-line mail ordering. And by providing AWS with an online platform for many sites, it can be said that it is involved in every industry. Therefore, not only to mimic the best seller on Amazon.com, but also to hand-made EC siteEtsyAnd exactly the same service as "Amazon HomemadeWe started copying "service", such as starting with ". Regarding Amazon, which is capable of entering all industries using data analysis, lawyer Lina Kahn said, "It is a" railroad "in the 21st century, not only practical for many businesses, It is a conflict. "


Amazon is also obsessed with understanding customers as "knowing customers" is necessary to satisfy the needs of customers, "said Vijay Goranda Rahan, a professor at a business school. I will. In general, collection of customer data is not a favorable act, but it raises concerns about how to use and manage information, but Amazon makes it easy to use the data analysis to make the service cheap and convenient, It has acquired the feature that it is loved, not to be hated by customers.

Mr. Jean Munster, who once served as an analyst at Amazon, says "Amazon's goal is to please our customers." Amazon thoroughly avoided the use of data that users do not like, and have won overwhelming trust from users despite huge information. However, Mr. Manstar notes that Amazon's winning "trust" does not reflect "damage" Amazon has given to its competitors, partners, and workers. "It's foolish to see business only from the customer side, it's an act of carving people into half and ignoring the other half," workers "or" product suppliers, "Mr. Munster Says. I am not looking at the fact that satisfying with the high quality service received from Amazon and delusing Amazon is supported by warehouse workers working in harsh environments and sellers forced price cut competition with rival products That's why.

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The business style of Amazon that enters various fields and places price competition and restrains the market is trembling the stakeholders of competing business. For example,An announcement that Amazon will acquire a luxury super Whole FoodsThe stock price of the foodstuff chain collapsed in the market. after that,Amazon begins to lower prices of Whole Foods products as declared, The stock price of the food chain plummeted again. When it is reported that Amazon applied for trademark for food delivery, Blue Apron's share price of food delivery service fell by 11%, Amazon with JP Morgan, Berkshire HathawayUncertain information to invest in health care ventureEven the invasion of health care related stocks declined.

Investment company Bespoke has analyzed using the index "Death by Amazon index" tracking the stock price of 54 competitors targeted Amazon since 2012. According to George Parkes of Bespoke, Amazon's stock price between February 2012 and January 2018 is 560% up while S & P index is up 102%, Death by Amazon index is only 42.8 It is said that it will stay at% up. The stock market tells the strength of Amazon virtually.


Amazon dominates online retail services, but in the US it is only 9% of the retail market. In other words, the remaining 91% has a promising market that Amazon should cut into.

Amazon, including Whole Foods, has begun to expand into real stores. Among them, "Regress supermarket"Amazon Go"Is equipped with a mechanism that can be applied to any real store, there are indications that Amazon will hold a major key to steal 91% in the future. In other words, Amazon provides infrastructure services like "real world AWS" by providing a system that does not require a cash register to other retailers as a service. Of course, Amazon's ambition is to aim for complete control of real stores by grasping sales data of retail stores. From the fact that it leaves the grand frontier of 91% remaining, the evaluation that "Amazon has just begun" has been issued.

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Although Amazon may possibly advance into all sectors and it may build a position as an infrastructure even in the retail market, it is impossible to ban its monopoly under the current legal system. Mr. Kahn explains the necessity of legislation such as "rules to prohibit competing with companies using the platform". With this rule, if Amazon sells its own brand products on Amazon.com or if you offer Amazon Go system, you will not be able to run real stores. "If regulation is not done, Amazon will continue to suck up the wealth that other companies create," Kahn said.