Amazon! What now for Australian Retailers?

WHY THE FEAR?

https://www.statista.com/chart/4298/amazons-long-term-growth/

2015 $596m profitsREINVESTMENT

2015 $107b RevenueGROWTH

2016 Revenue$136b

2016 $2.4b profits

AMAZON VERY INFLUENTIAL GLOBALLY

How much do these companies influence lifestyle – Global Shoppers

39%

HOW DOES AMAZON RANK FOR AUSTRALIANS?

How much do these companies influence lifestyle – All Australian Shoppers

12%

Amazon Pantry

Heavy lifting replenishment of bulky

basics & essentials…

All decisions and products driven by sophisticated data analytics

Amazon Fresh

Full same day grocery delivery service

Amazon Echo

Personal AI (Alexa) assistant is the hub for your smart home

Own the customer shopping list

Seamless ordering & replenishment

Ultimate convenience without a price premium

Automatic & real-time delivery

Amazon Prime Now

One hour delivery on 25,000 daily essentials

FRICTIONLESS CUSTOMER EXPERIENCE

Personal AI (Alexa) assistant is the hub for

your smart home

Amazon Dash

Consumer goods home ordering &

replenishment

MORE TO FEAR…

Herringbone

Rhodes & Beckett

Marcs

David Lawrence

Pumpkin Patch

Payless Shoes

Howards Storage World

“Stitched up: How the global giants are squeezing out

Australian fashion”…

“Small online retailers ‘in aggregate are quite a

force’…”…small to medium online retailers now make up 36 per cent of the $21.7 billion in online sales being generated

annually in Australia….

WHAT CAN WE LEARN?Amazon reinvestment, pricing, customer

obsession, exploration, ignore competitorsZARA agile supply chain, customer data drivenUNIQLO R&D capabilities, quality, experienceNiche local, personalised, experience

•Listen•Test and Learn with new propositions

CUSTOMER CUSTOMER CUSTOMER

INNOVATION or EXPECTATION?

•Humans adapt fast•Stop rejecting digital

GET LEAN to REINVEST

•Attack the WASTE in your business•Focus on Working money – is your spend directly changing the customer experience?

DATA to drive ACTION

•Gut feel doesn’t cut it•Stop using data to justify past actions, use data to provide actionable insights

1. CUSTOMER CUSTOMER CUSTOMER

2. Understand when INNOVATION becomes EXPECTATION

3. Get LEAN to REINVEST

4. Use DATA to drive ACTION