Tuesday, February 02, 2016

Retail Strategy: How To Be Amazon Proof?

I wanted to comment on this article I found the headline interesting of Business Insider: Why Costco is Amazon Proof.

I actually found this interesting video showing how Costco was cheaper than Amazon, offering then more added value to Amazon. 

For those who read this blog often you know that I love Costco. But I don't want to write about how Costco could or could not be "Amazon Proof". To be "Amazon Proof", you don't need to copy Amazon, or to try to beat them at their own game, by expanding more your product range, or to be cheaper. You need to find a strong concept to rely on.

Costco for instance, has a membership short bulky product range concept, and hence is able to provide a clear service with a clear added value to customer. But you have other concepts that in my opinions are "Amazon Proof", like Ikea and its furnitures in kit concept, or some clothing stores like Zara or Primark.

This is also the reason why is developping right now some new services to bring extra added value thanks to its Amazon Prime service, not to compete solely on price, but to create added value despite not owning brick & mortar stores.

If you are a retailer, you need to get a clear and unique offer in order to stand out of the competition, and therefore compete with online actors.