Morgan Stanley analysts have described JB Hi-Fi “in fighting shape” against Amazon Australia, citing robust price competition versus the e-commerce giant.
As per The Australian, in a report published by Morgan Stanley analyst, Thomas Kierath, the firm updated its analysis of Amazon Australia’s pricing and product range.
“JB Hi-Fi looks competitive but supermarkets and Rebel less so”
“Amazon looks to be highly reliant on shipping from the US or the ‘Global Store’, which limits the current impact on Australian retailers, in our view.”
“Amazon’s local SKU growth looks muted with the ‘Amazon Global Store’ compensating.”
The news follows the launch of Amazon Australia in late 2017, with the e-commerce giant steadily expanding its local operation.
Nearly a year on, Morgan Stanley analysts assert Amazon Australia is more expensive than local retailers such as JB Hi-Fi for most branded tech goods.
Analyst research reveals Amazon beat JB Hi-Fi on price in only three of twelve products checked – overall 4% more expensive.
The news follows a consumer electronic ramp up from several overseas owned conglomerates – e.g. German supermarket ALDI, and the forthcoming Kaufland mega-stores.
Mr Kiernath claims Amazon Prime eligible SKUs have climbed 56% since August 2018, however, the majority are being delivered from its American Global store, affecting delivery time.
He attributes Australian supplier reluctance and insufficient local warehouse capacity as potential fcators.
Kiernath also highlighted Amazon’s requirement to gather sales data from brands selling on its platform, increasing the likelihood of it developing a cheaper private label rival.
