How to Beat Amazon in Australia: Get Predatory Marketing
The retail giant is making its long-awaited move into Australia, bringing its new brand of instant retail distribution to Down Under. While previously only available with expensive shipping and sales in USD, the average Australian consumer will now have easy access to products from around the world in local currency and a higher level of convenience.
75% of Australians aged over 18 say they are interested in Amazon Australia and 56% are likely to purchase from its Australian site, according to a Nielsen survey conducted last February.
Despite the long notice period, the American retail, dubbed as ‘digital monster’, launches in 2018 — and only 14% of Australian businesses have put any serious thought into competing with the global brand. Investors have already turfed Harvey Norman and Myer, which have fallen 3.4% and 2.6% respectively. Electronics retailer and market darling JB Hi-Fi has shed 1.8%.
So How Do Retailers Compete?
The online giant’s first weakness is that their business methodology is public knowledge. The company eagerly lists its Leadership Principles on its website.
On the surface, these principles seem innocuous enough for business purposes. However, there are weaknesses that these principles showcase, including an inability to be flexible.
Companies can also take the positive aspects of these principles, such as an eye to continuous improvement and interdepartmental synchronisation.
7 Strategies to Beat Amazon in Australia
1. Do not compete with Amazon on price.
Amazon is the ultimate volume distributor, and they have deep pockets. This means that it can lower prices for individual items below what any local retail store or distributor will be able to offer.
If you try to compete with Amazon on price, the effort will be short-lived. If your customers learn to come to you for the lowest price, you will eventually end up cannibalising yourself.
2. Do not try to compete with Amazon on name brand product.
Amazon also has a larger selection of products than any local store will be able to procure. If you try to match the selection that Amazon has, you will probably end up running out of money.
Read the complete list of strategies to outsmart Amazon here.
Originally published at The Step Change Blog.
