Digital
companies are subjected to the duty of innovation. Indeed, our society has proven
that biggest companies always try to add activities to their business, and they
find solutions for this by creating recombinant innovation
in order to entertain the consumer and create needs. In this article digital
marketing notions are subtle but in fact Amazon, this giant of digital, has
combine its digital tools Amazon Go with the supermarket mass distribution, at
least at the scale of grocery store, and create a new form of mass distribution
marketing.
Introduced
by an unexpected tweet on 5th December 2016, Amazon has announced a
new kind of making your groceries. They have created the first shop in which
you can enter, take what you need, and go out without passing by the checkout
and avoiding the endless queue. The system would provide to people an
application, the digital marketing tool, with a QR code you flash at the entry.
The entire behavior of the consumer is then tracked by a technology that amazon
keeps vague. In other words, you can read that this system works by “Computer
vision, deep learning algorithms, sensor fusion”. For most of the people this
would mean nothing apart the use of Big data maybe, but the fact is it doesn’t
matter that you take a product, regret to took it and put it back, the system
will entirely follow to make no mistake and make your life easier. Amazon only explained
that this “just walked out” technology is similar as what you can find the same
technology in autonomous vehicles (captors, image analysis, AI). You can
therefore drop your wallet at your home, this wallet is being, step by step, abandoned
for the mobile technology and the dematerialization of everything.
Of course, everything in this shop is related to your
amazon account. This is a way for Amazon to combine everything because with
this tool Amazon Go, combining physical shopping and digital (virtual)
technology, they could benefit of the influence over consumer behavior, which will
tend to buy everything they need on Amazon, this including products and now, more and more services (like Amazon
air prime). This could be a way to Amazon to gain the entire loyalty of its
customers and increase significantly their margins by selling several types of
products together, and even bundling its products.
The Amazon Go store is located in Seattle, home town of the company, and is
opening to the public at the beginning of 2017. For the moment it is in “beta-testing”
with Amazon employees, a way for the company and employees to commit themselves
and represents a great sample of how mistakes it could still exist.
But shall we consider that Amazon purpose is to conquer
the entire mass distribution? Let’s calm down a little, and examine what is accomplished
today. First of all, Amazon have understood that, because of each generations’
habits, virtual technology will never absorb entirely physical shopping. Even
the most “tech person” will consent to say that certain types of shopping
requires to hold the product, or try it, to fulfil his purchase. Secondly, the
shop is modestly sized, with his 1.800
square feet. It is therefore a bit soon to assume that Amazon will compete
with big supermarkets like Carrefour or Auchan (that have an average of 110.000
square feet). For the moment they more attack grocery stores’ market, by
introducing their digital tool “Go” to the daily basis life of people, for them
to buy shorter amount of groceries but more often. But according to the Wall Street
Journal the company Amazon will tries to practice 3 kinds of shopping, first
the “proximity shopping”, then a bigger format of distribution, and third a
drive system, as Auchan Drive etc., where people would be able to take away
groceries they previously bought online.
In Amazon Go store, people will be able to find delicious ready-to-eat breakfast, lunch, dinner, and snack options made
fresh every day by their on-site chefs and favorite local kitchens and
bakeries. Amazon’s selection of grocery essentials ranges from staples like
bread and milk to artisan cheeses and locally made chocolates. Consumers will
find well-known brands everybody love; plus, special finds Amazon are excited
to introduce to customers. For a quick home-cooked dinner, pick up one of our
chef-designed Amazon Meal Kits, with all the ingredients you need to make a
meal for two in about 30 minutes.
About digital marketing, this recombinant innovation
from Amazon, which follow your habits and your entire shopping behavior, will
enable society to have a perfect tool to observe the entire you and know you as
best as you know yourself. There are also many negative and feared aspects of
this, like continuing to increase the entire automatization of the society and,
therefore, kill unskilled jobs that some people (students and non-graduate
people) need.
Below
you can find the original tweet from Amazon; by surprising everyone on social
networks, their digital marketing strategy has benefit from a huge number of “like
and share” on several social networks, a successful way for spreading the news
to everyone as an instantaneously boom. To conclude, Amazon's colossal strategy
brings him closer to his oldest dream: to become an own-delivery system for themselves
at the same time for shops in physical society.
Sources:
Introducing #AmazonGo, a new kind of store with no lines and no checkout. https://t.co/WMii0bWevi pic.twitter.com/OmZdzobA5F— Amazon (@amazon) 5 décembre 2016
Sources:
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