Tales from the road - Amazon: Lessons from the US for Australian retail

29 November 2017

Amazon* is finally here!

The e-commerce giant’s entry into the Australian market has been a constant source of discussion for several months, and the likelihood of a large disruption for our local retailers appears to have already been priced in. 

In late September, I travelled to the US to attend a large Global Retail Conference and see first-hand the experience of retailers, particularly those operating in the supermarket and consumer electronics spaces, meeting various companies all along the supply chain. Companies I met included supermarket and general merchandise players Walmart, Walmex, Sprouts, Macy’s, Dollar Tree, Carrefour, and Sainsbury’s, and sporting goods retailers Hibbert Sports and Lowes*. I also spoke to ex-employees of both consumer electronics retailer Best Buy and Amazon itself*

While Amazon will impact the Australian retail landscape, based on these discussions I remain positive for Australian retailers. My trip has helped me to see a different trend for each segment - the supermarket sector is less likely to suffer; however, parts of the consumer electronics industry is going to face increased competition. 

I believe that is it not too late for Australian retailers in all segments to learn from the global counterparts who have survived or even thrived in the face of Amazon, and I outline some of these lessons in this paper.

Download full version of this article (PDF)

CONSUMER ELECTRONICS CAN COMPETE, BUT IT WILL BE HARDER

Consumer electronics are at the heart of Amazon’s commercial offering. Despite concern regarding Amazon’s impact on the Australian market, my trip to the US has made me confident that large Australian electronic retailers can compete with Amazon. Although, it may be at the expense of the second-tier operators that can’t keep up. 

On my trip I met with several ex-employees of Best Buy*, a company that has survived, and even thrived in this space, despite initially struggling to compete with Amazon in the US in the early years. In fact, its earnings per share, and share price are now at a record high.

Click below to see the six tools incumbent retailers can make use of to battle Amazon: 

Amazon* is finally here!

The e-commerce giant’s entry into the Australian market has been a constant source of discussion for several months, and the likelihood of a large disruption for our local retailers appears to have already been priced in. 

In late September, I travelled to the US to attend a large Global Retail Conference and see first-hand the experience of retailers, particularly those operating in the supermarket and consumer electronics spaces, meeting various companies all along the supply chain. Companies I met included supermarket and general merchandise players Walmart, Walmex, Sprouts, Macy’s, Dollar Tree, Carrefour, and Sainsbury’s, and sporting goods retailers Hibbert Sports and Lowes*. I also spoke to ex-employees of both consumer electronics retailer Best Buy and Amazon itself*

While Amazon will impact the Australian retail landscape, based on these discussions I remain positive for Australian retailers. My trip has helped me to see a different trend for each segment - the supermarket sector is less likely to suffer; however, parts of the consumer electronics industry is going to face increased competition. 

I believe that is it not too late for Australian retailers in all segments to learn from the global counterparts who have survived or even thrived in the face of Amazon, and I outline some of these lessons in this paper.

Download full version of this article (PDF)

CONSUMER ELECTRONICS CAN COMPETE, BUT IT WILL BE HARDER

Consumer electronics are at the heart of Amazon’s commercial offering. Despite concern regarding Amazon’s impact on the Australian market, my trip to the US has made me confident that large Australian electronic retailers can compete with Amazon. Although, it may be at the expense of the second-tier operators that can’t keep up. 

On my trip I met with several ex-employees of Best Buy*, a company that has survived, and even thrived in this space, despite initially struggling to compete with Amazon in the US in the early years. In fact, its earnings per share, and share price are now at a record high.

Click below to see the six tools incumbent retailers can make use of to battle Amazon: 

Amazon* is finally here!

The e-commerce giant’s entry into the Australian market has been a constant source of discussion for several months, and the likelihood of a large disruption for our local retailers appears to have already been priced in. 

In late September, I travelled to the US to attend a large Global Retail Conference and see first-hand the experience of retailers, particularly those operating in the supermarket and consumer electronics spaces, meeting various companies all along the supply chain. Companies I met included supermarket and general merchandise players Walmart, Walmex, Sprouts, Macy’s, Dollar Tree, Carrefour, and Sainsbury’s, and sporting goods retailers Hibbert Sports and Lowes*. I also spoke to ex-employees of both consumer electronics retailer Best Buy and Amazon itself*

While Amazon will impact the Australian retail landscape, based on these discussions I remain positive for Australian retailers. My trip has helped me to see a different trend for each segment - the supermarket sector is less likely to suffer; however, parts of the consumer electronics industry is going to face increased competition. 

I believe that is it not too late for Australian retailers in all segments to learn from the global counterparts who have survived or even thrived in the face of Amazon, and I outline some of these lessons in this paper.

Download full version of this article (PDF)

CONSUMER ELECTRONICS CAN COMPETE, BUT IT WILL BE HARDER

Consumer electronics are at the heart of Amazon’s commercial offering. Despite concern regarding Amazon’s impact on the Australian market, my trip to the US has made me confident that large Australian electronic retailers can compete with Amazon. Although, it may be at the expense of the second-tier operators that can’t keep up. 

On my trip I met with several ex-employees of Best Buy*, a company that has survived, and even thrived in this space, despite initially struggling to compete with Amazon in the US in the early years. In fact, its earnings per share, and share price are now at a record high.

Click below to see the six tools incumbent retailers can make use of to battle Amazon: 

Amazon* is finally here!

The e-commerce giant’s entry into the Australian market has been a constant source of discussion for several months, and the likelihood of a large disruption for our local retailers appears to have already been priced in. 

In late September, I travelled to the US to attend a large Global Retail Conference and see first-hand the experience of retailers, particularly those operating in the supermarket and consumer electronics spaces, meeting various companies all along the supply chain. Companies I met included supermarket and general merchandise players Walmart, Walmex, Sprouts, Macy’s, Dollar Tree, Carrefour, and Sainsbury’s, and sporting goods retailers Hibbert Sports and Lowes*. I also spoke to ex-employees of both consumer electronics retailer Best Buy and Amazon itself*

While Amazon will impact the Australian retail landscape, based on these discussions I remain positive for Australian retailers. My trip has helped me to see a different trend for each segment - the supermarket sector is less likely to suffer; however, parts of the consumer electronics industry is going to face increased competition. 

I believe that is it not too late for Australian retailers in all segments to learn from the global counterparts who have survived or even thrived in the face of Amazon, and I outline some of these lessons in this paper.

Download full version of this article (PDF)

CONSUMER ELECTRONICS CAN COMPETE, BUT IT WILL BE HARDER

Consumer electronics are at the heart of Amazon’s commercial offering. Despite concern regarding Amazon’s impact on the Australian market, my trip to the US has made me confident that large Australian electronic retailers can compete with Amazon. Although, it may be at the expense of the second-tier operators that can’t keep up. 

On my trip I met with several ex-employees of Best Buy*, a company that has survived, and even thrived in this space, despite initially struggling to compete with Amazon in the US in the early years. In fact, its earnings per share, and share price are now at a record high.

Click below to see the six tools incumbent retailers can make use of to battle Amazon: