Weekend Thought Starter
A few thought starters as we enter the weekend…
Looking to capitalize on big Echo sales this past holiday season, CNBC has reported Amazon is looking to incorporate advertising into the Alexa platform. If successful, this has a range of implications:
- Many companies, particularly in the CPG space, will eventually shift advertising dollars from other channels to voice
- A customer experience which encourages and features frictionless search / ordering may result in even higher market share for Amazon
- Google Home and Apple HomePod may take similar routes
How much opportunity could this provide to Amazon and its advertisers? It turns out Echo owners spend more on average than Prime members.
A few interesting takeaways:
- The need to develop a more compelling in-store experience. Creating a more inviting environment through a range of non-grocery shopping activities results in the grocery store becoming more of a destination.
- Tackling disruption head-on. Offering meal kits, either through innovation or acquisition, is a growing trend in the category, and aims to regain share taken from brands such as Blue Apron.
There’s too much to cover in a few sentences, however this annual report by J. Walter Thompson Intelligence always crystallizes the emerging trends in areas ranging from culture, marketing, retail, to health, tech, and beauty.
A few which caught our eye:
- Streaming Wars. The original disruptors (Netflix, Hulu) are now being challenged by a new set of competitors.
- Global Nomads. An emerging community of digital nomads presents the need for travel brands to accommodate and opens the door for new category players to create value
- Inclusive e-commerce. Long underserved, new category entrants in retail are focused on the low-income consumer.