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I think this article is a little misguided. Sure, commodity products such as Duracell or cheap clothing companies might be in trouble, but such companies were
by nicodjimenez 8y ago
I think this article is a little misguided. Sure, commodity products such as Duracell or cheap clothing companies might be in trouble, but such companies were weak brands in the first place. Their main appeal was low cost, good enough, and Amazon is just doing the whole low cost, good enough thing better than anyone. But high end brands like Apple, Nike, Louis Vuitton, Gucci, are not going anywhere, that's for sure!
- alfredallan1 8y agoNot immediately, no. 10 years back, Duracell seemed a very strong brand. All it is going to take for LVMH, etc. to start getting replaced is a new generation of online shoppers seeing Amazon house brands right next to these and subconsciously associating them together as brands of equal value.
- nicodjimenez 8y agoNot going to happen. High end conspicuous consumption products are well protected against Amazon. You can be a low end brand or a high end brand but you cannot be both.
- Spooky23 8y agoI would disagree. White label alkaline batteries are notoriously inconsistent in terms of capacity. AmazonBasics isn’t a white label, it’s a brand in of itself, with consistent quality.
- dimator 8y agoThe question is, if you wanted to start a cheaper, good-enough battery company, even cheaper than AmazonBasics, could you sell and compete on Amazon? Or would they still outposition you by hand holding customers directly to theirs? I'm fairly sure it's the latter.