Arrival Of Amazon Will Create “Biggest Disruption In A Generation”, Says Bain and Co
Global consulting giant Bain & Company have weighed in on the potential impact of Amazon on the Australian retail giant, claiming it could create “the biggest disruption in a generation.”
Speaking to the Australian Financial Review, Bain & Co partner Yngve Andresen says that the online shopping giant is “fundamentally changing how people are shopping … in the US 90 per cent of consumers use Amazon to price check and even Australian consumers are already using Amazon to price check.”
Andresen claims that “ninety per cent of customers say they’re very happy to have Amazon coming and are willing to try them. I believe it’s a once in a generation retail disruption.”
The key to this disruption isn’t just Amazon’s size and market share but rather its “customer obsession” and its ability to engage with consumers almost 24 hours a day through an ecosystem.
“Dollars and shares don’t matter – it’s more about the ecosystem and how that will disrupt the Australian market,” Andresen argues.
Andresen says that the key to surviving in a post-Amazon retail space won’t involve copying them but rather by doing what Amazon simply cannot. He says that retailers will need to leverage all of their existing assets – from in-store experiences, loyalty programs and customer data – in order to engage directly with shoppers and offer them a unique experience that they can’t get online.
“You see winners and losers from any disruption in history – so it will be with Amazon,” he says.