Amazon added another tributary to its vast marketplace and distribution network -- a Luxury Beauty Store. Consumers can now spend hundreds if not thousands of dollars on personal care items without so much as testing them out first. Does Amazon’s move raise more implications for the competition than for the online retailer itself? Does the consumer stand to benefit in ways other than price?
A report from Hill Holliday suggests that companies want to behave more like people these days. People evidently lack faith in institutions, prompting business to take steps to change their images. Is it possible to gain consumers’ trust by demonstrating empathy, talking like ordinary people and “empowering individuals to be the brand”?
There’s $565 billion worth of sales in the grocery business every year, according to a report from CNBC. Problem is, profit margins have always been historically low. So why would the likes of Amazon and Wal-Mart rush headlong to get into the food business? Does either company believe that establishing a beachhead on Aisle 2 will be worth the effort? Not to mention the cost?