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Re: 1 - that statistic about 10% extra premium for private labels is supposedly data. I'm assuming it's correct(just a Google search, sorry no link , on mobile)
by petra 7y ago
Re: 1 - that statistic about 10% extra premium for private labels is supposedly data. I'm assuming it's correct(just a Google search, sorry no link , on mobile).
// You don’t need many companies to erase margins if they are competing on price.
Can you explain ? Because my mental model of this is wireless carriers, cable TV, etc, with good margins.
// Apple is considered the best in supply change management in the world. They have huge bargaining power because they sell a lot of a few goods. Amazon would be selling a relative few of a lots of stuff.
Xiaomi does that sucsessfuly over a large range of electronic products.
Also, sure Amazon won't get to 50% margins like in software.
But could they get to 10% ? Or maybe 15% ?
And they'll surely grow, globally.
Would that be enough for the p/e ?
- scarface74 7y agoCan you explain ? Because my mental model of this is wireless carriers, cable TV, etc, with good margins. Cable carriers usually have a monopoly in the places they operate. We have seen carriers have to be more competitive as T-mobile got aggressive as prices did fall. And they'll surely grow, globally. Growing selling physical goods aggressively means setting up more warehouses, more expensive logistics, catering to different languages, etc. In the worlds biggest markets - India and China they would have to compete with entrenched incumbents and in the case of China, government subsidized businesses.