Amazon will make retail a "horrible business" in Australia
Marketing researcher Scott Galloway says Amazon's impact on Australian business won't be pretty over the next decade.
“Retail is going to be a horrible business," he tells Which-50.
Scott Galloway, is Professor of Marketing at NYU and founder of research agency L2.
“The media will publicise a small handful of winners who can combat Amazon and do well, but your retail ecosystem will be a shadow of what it is today in 10 years,” Galloway added.
“You have an American company showing up with infinite capital that consumers will love. They will operate at a zero to negative 20% margin and they will start taking share from everyone and taking oxygen out of the room."
Galloway argues in his book The Four that Amazon, Google, Apple and Facebook need to be broken up to "oxygenate the marketplace".
“I think there is restraint of competition, abuse of monopoly power, and that the markets are failing,” he said.
Galloway believes parents and European regulators will be key to combatting the power of The Four.
“Consumers talk a big game about supply chain ethics and then want a little black dress for $9.99. They claim to care about their privacy and then less than 1 per cent clear their cookies. So this revolution will not be consumer led,” Galloway said.
“I think it will be led by two groups. I think it will be led by regulators out of Europe and parents globally who are starting to observe their kids having more what I’ll call emotional stress and strain at the hands of social media platforms.”
Network breakfast to discuss Amazon threat to drinks industry
Yngve Andresen, from Bain & Co, will be the guest speaker at the Drinks Association Network Breakfast on March 21.
He will discuss "Amazon is here – what’s next and what should Australian consumer goods companies do?"
Andresen notes that while the initial launch might have been rushed and under delivered on expectations, it is poised to present the biggest retail disruption in a generation during 2018 and beyond.
The presentation will explore the impact of Amazon on the Australian retail and consumer goods landscape long term and how Australian consumer good companies can adapt.
Andresen is a Partner in the Melbourne office of Bain & Company, where he is a member of Bain’s Australian Retail & Consumer Products leadership team, and the Asia-Pacific leadership team. He has more than 15 years consulting experience predominately in the retail and consumer goods sector working across a range of food, beverage and discretionary categories.
Andresen has also worked extensively with major grocery, wholesale, apparel and department store retailers in Australia, Asia and Europe. He specialises in customer strategy, large-scale growth and cost transformation, and mergers and acquisitions.
When: March 21, 2018
Where: Crystal Ballroom, Luna Park, Sydney
Click here to book