Analyzing Future of Retail with the Increasing Dominance by Amazon

Retailers have had a compelling relationship with the customers for hundreds of years. Whenever the necessity of a product arose (clothes, food, hardware, etc.) they had a specific brick-and-mortar location in mind. Then along came the Internet, which changed the consumer journey with e-commerce that challenged the old distribution models.

As the technology evolved and continued to advance, it made the consumer access the products virtually; they could now access anything on their smartphones within their hectic schedules. This impact has led to the booming of many e-commerce websites, but the impact that Amazon has on the digital marketplace is second to none.

The characteristics that made Amazon stand above its competitors:

Amazon Targets the Millennials. Many research has proven that Millennials are twice adaptive to new technology and trends. Being the largest generation, it also permeates other generations at an increasing rate. Amazon was able to appeal all the generations, outperforming the top brands like Apple, Netflix, TOMS shoes, and Uber.

Amazon outperforms top brands when scored against millennial mindset

Amazon Stays Ambitious. Even though Amazon became the e-commerce giant that its competitors could only dream of, it didn’t stop there. After becoming a one-stop destination for clothing, accessories, cosmetics, etc., it is now charging towards the grocery market in full swing. According to a study conducted by Food and Marketing Institute, US supermarket sales were $649 billion in 2015. But it’s not just the size of the market, but the high frequency of purchase that attracted Amazon to be assertive in the grocery sector.

Amazon has continued with a large number of acquisitions to eliminate competitors, gain market, and acquire infrastructure

Amazon Maintains its Market Position. With a relentless pace of innovation, Amazon’s Prime Now is the next level of behavior modification. By promising a 2-day delivery and increasing consumer’s expectations by speed and convenience, it has created a benchmark for its competitors to even keep up, let alone stay ahead.

This shift of balance has been rightly observed by Fortune, who believes that this dominance by Amazon will continue to grow and retailers must not expect any relief anytime soon.