Amazon should be disappointing customers, but are they?
In April at a trade event, an Amazon employee in Shenzhen was videoed calling for suppliers to help them cut out the middleman. Quote, "We think that will enhance margins for our manufacturing partners, and it will delight customers.", end quote. The Wall Street Journal has seen the video and reported on it.
Eliminating brands and retailers from the supply chain certainly would allow manufacturers to sell their product at a discount to consumers. The concern many consumer advocate groups have, and The Wall Street Journal's findings earlier in the year support the matter, is that direct manufacturers are not always following consumer safety regulations. And worse, Amazon is not monitoring its sellers to a sufficient degree. Safety regulations include the FDA (Food and Drug Administration) rules in the United States.
One example in Jon Emont's reporting stood out. Lagunamoon sells cosmetics and essential oils on Amazon, a seller whose product doesn't meet the definition of an approved product according to the FDA. But the seller did indicate that they are U.S. Food and Drug Administration approved.
And there are worse stories. Amazon has been so compelling for consumers because they are a consumer-centric company, offering fast delivery at low prices. When Amazon does not adequately monitor its listings, it does an incredible disservice to their customers. Although Amazon spokespersons say, quote, "Customer safety is Amazon's top priority", end quote, they consistently show otherwise by pursuing market share growth ahead of safety. When will this begin to wear on customer's perception of the retailer?
Emont's article also touched on counterfeit goods on Amazon - read it here: https://www.wsj.com/articles/amazons-heavy-recruitment-of-chinese-sellers-puts-consumers-at-risk-11573489075
And I hope this is the only time we will address Black Friday this season of the podcast - there is already enough chatter about it everywhere. Our advice: offer carbon offsets with your discounts.
Holiday creep, or Black November, holiday discounts being offered early into November, has been taking away some of the impacts of Black Friday and Cyber Monday in the last couple of years. But it may be beneficial to, quote, "creep", end quote. Consumers who spend earlier for the holidays tend to spend more overall for the season. And discounts will continue to drive sales, and in many cases, brand preferences.
Additionally, sustainability and responsibility will remain active in consumers' minds over the holiday. Retailers who plan around responsible retail could even have a potential edge over competitors. Surveys by Accenture found that these factors increasingly influence consumers purchasing decisions.
So, we hope you've worked with your supply chain to be able to offer those steep discounts - and considered how you would offset your environmental impact, or increase your social consciousness. Giving Tuesday follows Cyber Monday, don't forget.
In the last, five or so years, luxury has been keeping itself fresh by bringing new design talent to helm established houses: Virgil Abloh (a-blow) at Louis Vuitton, and Riccardo Tisci (Reeeecardo Teeshe) at Burberry. The re-freshes followed two decades of new label launches: Alexander McQueen, Alexander Wang, etc.
Is there going to be a re-emergence of old labels? German company Jandorf Holding has been "collecting" historic personal luxury brands - and they certainly think so. The group re-launched Manheimer suits this year, a luxury menswear label founded in Berlin. And there may be a soft re-launch of crystal glassware from vanished brand Josephinenhütte, founded in 1842 and named after German royalty.
The group owns other labels and is in negotiations for more. One of the group's founders, Lothar Eckstein, spoke about the opportunity. Quote, "There are a number of changes in the industry that make this a viable business. It's two things coming together: History and opportunity.", end quote. He's referring to nostalgia and authenticity, with the opportunity online brand development and selling offers the luxury market. We wonder what other old brands we will see re-emerge.