Food shopping

The Impact Of Amazon On The Future Of Food Business In Europe

On Black Friday, Profitero’s Director of Strategy and Insights EMEA Andrew Pearl, and Nielsen’s International Sales Director Paolo Politi gave a speech about their complete analysis of the impact of Amazon on the future of food business in Europe.

Amazon As A Main Competitor

In some countries, especially in France, the concept of « click & collect » has developed very fast amongst supermarkets. It is mainly due to the fact that home delivery costs are quite expensive. In this framework, it is easily understandable that online food shopping is much welcomed by consumers. What is even better with online shopping, is that consumers can buy goods from anywhere in the world without having to move from their seat. Amazon got that long ago, making available some specific local products to other countries. For Example, German consumers can easily buy El Pozo, this famous cold meat normally available only in Spain.

Although Amazon has not yet conquered a significant part of the food products market, the giant continue investing a lot on this sector and counts highly on it to keep its business stable in the future. It has indeed developed several processes that will help establish themselves as a main competitor worldwide.

Amazon Processes To Improve Their Presence

Amongst Amazon processes to improve their presence on the European food market, let’s underline:

  • Amazon Fresh: a service of groceries and household essentials delivered to your door. The service includes groceries online shopping, delivery scheduling and fast delivery.
  • Dash Button: In France, the United-Kindom, Germany and Austria, consumers can get a Dash Wi-Fi button to fix right next to their concerned domestic electrical. For instance, a washing powder button can be fixed next to the washing machine, so that when the consumer runs low on washing powder, it can click the button, which will instantly place an order for new washing powder on Amazon.
  • Prime Now: a European service of ultra-fast delivery, where the consumer can chose the time of delivery.
  • Amazon Pantry: a service for discount bulk orders.
  • Amazon Subscribe & Save: for automatic deliveries of regular orders. Consumer must tell the frequency of delivery and a discount is applied.

Create Customer Loyalty

All these services have one goal in common: create customer loyalty and retain them. The Dash and Subscribe & Save processes have brought what we now call the « zero experience », which means that the consumer does not even have to open their computer to buy online. No effort is needed and the time of delivery is reduced to the minimum. If the technology exited yet, consumers would just have to think about buying a product to place an order.

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