Matt BrittonFounder & CEO powering AI-driven consumer insights

Will AmazonBasics Mark The Beginning Of The Demise Of Low Involvement Brands?

Name: Will AmazonBasics Mark The Beginning Of The Demise Of Low Involvement Brands?
Uploaded: 2018-01-17T15:22:46Z
Channel: Matt Britton
Description: AmazonBasics, powered by Alexa voice ordering, could kill established brands in low-involvement categories like batteries. When ordering is frictionless…

17 Jan 2018

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AmazonBasics, powered by Alexa voice ordering, could kill established brands in low-involvement categories like batteries. When ordering is frictionless, convenience beats the Duracell or Energizer name. The threat spreads to toothpaste and toothbrushes, leaving P&G, Unilever, and others scrambling for a response.

That if you use Amazon Alexa and you say Alexa order me Dora sell batteries. Alexa will say I will sell you Amazon Basics batteries. They say, no, Alexa sell me Dora sell batteries. Alexa will say, I will sell you Amazon basic batteries. What Amazon is betting is that the ease and ubiquity of not having to leave your couch or even type to order batteries trumps the value of a multi billion dollar brand like doracell or Energizer. What does that tell you about the power of brands? Amazon Basics isn't a brand, it's just a thing, right? The brand doesn't exist and maybe that's okay. And yes, it's a low involvement category, but it'll be toothpaste and toothbrushes tomorrow and up and up and up and up. And you know who are the biggest brand marketers? Well, it's P and G, Unilever, Kimberly Clark, JJ, et cetera. These are the companies and the automotive manufacturers with Uber. What are they all going to do, right? What's the solution?