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It makes sense in the physical world to consolidate a brand. It gives costumers an unified experience and slash costs with scale economy. I am not sure it is
by siscia 6y ago
It makes sense in the physical world to consolidate a brand.
It gives costumers an unified experience and slash costs with scale economy.
I am not sure it is the same on the digital world. What it is the advantage of consolidate business that sell only digital? Especially if those business sell mostly through Amazon?
Actually, consolidating, you are loosing the small niche appeal.
- ajb 6y agoI don't think this is about consolidating the brand. They want to be P&G, but no-one remembers which products are P&G products, they each have their own brand. This is a portfolio approach I think. So they will have some economies of scale and be able to swing more capital behind the products that turn out the most successful
- hef19898 6y agoPotential benefits I see are procurement, which would become cheaper. Logistics, which would become cheaper at scale not using FBA but things like Amazon's Seller Fulfilled Prime or Dropshipping. Also marketing could be centralized. Still not sure if a conglomerate like that would still be nimble enough at things like product selection and so on.
- throw14082020 6y agoAre these brands buying from factories, or are they factories themselves. I assumed it was the latter, because Amazon has helped make it so easy.
- hef19898 6y agoThere is a whole industry around white label sales. These Amazon seller are, as all good middle men do, bridging the gap between manufacturers and consumers. They use Amazon as a marketplace. The manufacturers benefit from earlier bulk sales, the merchants take the financial risk of inventory and the profits, and Amazon the fees.
- HPsquared 6y agoIn the case of someyhing like P&G, the name recognition definitely exists but it's in large buyers, e.g. supermarkets.
- markdown 6y agoWith all the garbage sold on Amazon these days, branding and trust are more important than ever. I mean, Amazon Basics has already proven this strategy.
- peteretep 6y agoI’d guess you can probably consolidate packaging, customer support, design engineering for new products, cross-sell existing customers, at least some degree of logistics, and you can probably consolidate suppliers for some of that sweet sweet discount pricing?