Walmart: Leads the charge for changing market (Image: Shutterstock)
Peter Martin, managing director of digital business firm SMP
According to eMarketer, Walmart is now the second largest e-commerce company in the United States. It may still be a reasonable way behind Amazon, but it is now ahead of eBay and Apple. This is a good display for a chain in brick and mortar retail.
one look Walmart Link, Its e-commerce arm, soon shows why its growth was so significant: it not only sells products online, it does what Amazon does.
Walmart now offers a service based on keywords, data and instructions. Brands no longer compete on the shelf, they can buy seats walmart.com With advertised advertising, product carousel and buy boxes. Brands can put their products at the top of the search list – and more challenging brands can buy a place on the product pages of market leaders.
But most importantly, it marks the way forward for retailers on this side of the Atlantic. The Amazon model clearly works for e-commerce – so is it time for more retailers to try this out? We will no longer have Walmart in the UK and Europe, but of course the supermarket and grocery chains have size and quantity that can reap the benefits.
Who is the next European Amazon?
Carrefour has locations throughout Europe and Asia. Sainsbury’s owns Argos & Habitat, which offers a wide range of non-food products. Tesco has a popular history of putting its own brand on everything from pet insurance to telecommunications.
There are many supermarket chains that can’t just take Walmart’s strategy, but as online shopping has become increasingly routine it should be seen as their default next step. Amazon is already ahead of Google in the ‘go’ option for product-related searches.
Big Four UK supermarkets – and discounts like Aldi & Little – have well-established brand values and trust, so they don’t have to go through the early stages of winning consumer trust the way Amazon does. In fact, there is an argument that in the EU, where Amazon is not so strong in the UK, consumer confidence in Carrefour is high.
Becoming a market will provide more opportunities for more product brands, especially smaller brands that may not be able to afford body wardrobe space. Chains like Amazon and Walmart can also invest in a Demand-Site Platform (DSP) interaction – allowing brands to buy advertising space on their sites in real time and use the restructuring on other sites to show customers products of interest. Pull them back.
Where supermarkets have a head start
In some cases, the big England chains are ahead of the game. For all the dissatisfaction that followed the introduction of Amazon Fresh, it was still a little challenging brand in the ‘weekly food shop’ space. Especially when it comes to grocery stores, Tesco, Sainsbury’s and the rest are still in the top spot.
Grocery chains have a remarkable record of high quality self-branded brands, of course for food, they are alienating. As far as other products go, it would not come as a surprise to any of us if Tesco suddenly announces things like Tesco-brand, ‘white label’ fridges and freezer like it did with Technica TVs.
Suitable for changing sector
Although some supermarkets in the UK have historically been slow to switch to e-commerce, they had to move fast as Govt accelerated this change. Compared to last April, they now have a wider and more efficient home delivery infrastructure, there can be no places for love or money.
Like Amazon, they also have warehouse space and can deliver both vendor and vendor models to brands. The question is how the shift to market approach will affect their current stock and infrastructure processes – not to mention the impact on buyers’ forces, which are currently primarily aimed at placing products on body shelves.
But when their internal model has to change, the revenue potential of this type of change is huge. This will provide the UK grocery chain with greater volume, new revenue streams and lower cost. In fact, all the advantages that Amazon has used have such impressive market share.
Walmart’s success in the United States highlights the value of the Amazon model and the way consumers want to shop that way. Whether UK supermarkets change their e-commerce thinking to adapt to changes in consumer behavior is not really a question, but when. And most importantly, who is going to do this first?
After all, Carrefour is a tech-savvy business that already offers innovations like these Voice shopping In partnership with Google. If the Tesco, Asta and UK chains do not accelerate their digital trading game and move in the direction of becoming an online marketplace, they may face another channel hurdle coming to the doorstep.
Peter Martin is the Managing Director of Digital Business Junior High