The New Face of Brands in the Age of Amazon - Catalyst 2018

The New Face of Brands in the Age of Amazon - Catalyst 2018

In a marketplace full of private label goods, what does it mean to be a brand in the age of Amazon? With Amazon capturing half of US online sales, traditional brands are rethinking how they develop and market products. In this session, Juozas “Joe” Kaziukėnas the founder of Marketplace Pulse, will analyze how consumers interact with brands on marketplaces and how brands can compete.

So, what will you learn?

* How to differentiate your brand on competitive marketplaces
* How brands can benefit from the Amazon ecosystem
* Information about new marketplaces that drive sales by curation
* Tips to creating new products that stand out

9b1dc79f9ca74e47f98ff5ad9b5c46f3?s=128

Juozas Kaziukėnas

April 19, 2018
Tweet

Transcript

  1. THE NEW FACE OF BRANDS IN THE AGE OF AMAZON

    Juozas “Joe” Kaziukėnas
  2. –A fashion brand at Glossy Forum “80% of our product

    searches began on Amazon.”
  3. Amazon accounts for 45% of all online sales

  4. More than half of everything sold online is sold on

    marketplaces like Amazon and eBay
  5. A problem and an opportunity: most customers want to shop

    on marketplaces where brands don’t get to own the experience
  6. The classic worry is Amazon putting retailers out of business.

    But Amazon is also exposing brands to the harsh reality of marketplaces.
  7. 70 years ago all it took to be successful was

    to make a product of good quality
  8. By the middle of the 20th century companies had to

    find new ways to differentiate
  9. Products developed identity, a perception to offer superior value to

    its competitors
  10. Brands are a shorthand that consumers use for guidance toward

    the right product
  11. The role a brand plays is evolving

  12. BRAND TOUCHPOINTS Pre-Purchase Purchase Post-Purchase

  13. BRAND TOUCHPOINTS Pre-Purchase Purchase Post-Purchase Amazon is changing this

  14. Traditional brands are at a disadvantage online because the things

    they’ve invested into are not as obvious and as valuable online
  15. How does this work on search-driven marketplaces?

  16. 26 million results for “t-shirt”

  17. –Farhad Manjoo of The New York Times “Amazon is becoming

    something like the umbrella brand, the only brand that matters.”
  18. AI and technology to power search and personalization, combined with

    customer reviews is challenging the price premium brands could charge
  19. • Customers trust Amazon Basics over Duracell and Energizer •

    6 out of 10 best selling batteries are Amazon Basics • Batteries by Amazon Basics are cheaper • Batteries by Amazon Basics have 10x more reviews
  20. Procter & Gamble spends more than $2 billion every quarter

    on advertising and marketing. Does this add value to the consumer?
  21. Beyond private label, brands with value proposition

  22. Not only is Amazon affecting brands itself, but the marketplace

    it runs has an even greater impact
  23. None
  24. None
  25. Wyze Cam $25.98

  26. WYZE CAM • Licensed hardware from a Chinese company •

    Created its own software • No middleman, no retailers • Piggybacked off Amazon platform • #1 best selling security camera on amazon.com
  27. hOmeLabs 9 Gallon Dehumidifier $195.78

  28. HOMELABS DEHUMIDIFIER • Expensive electronics product • $30 cheaper than

    Frigidaire alternative • #1 best selling dehumidifier on amazon.com
  29. Amazon-native brands

  30. None
  31. • Low-cost creation of products • Amazon as the only

    distribution channel • Customer reviews on Amazon • Marketing spend on Amazon
  32. “BEST” PRODUCT #1 PRODUCT IN SEARCH RESULTS

  33. $50 billion/year spent on ads on Amazon in a decade

  34. The missing parts

  35. Can’t measure and talk to customers

  36. Very limited access to data

  37. –Hilary Milnes at Glossy “Tmall’s influence on the fashion industry

    in China starts before products even hit the online store. Through a network of manufacturing and fabric sourcing partners, the company can connect designers to local factories, mills, distributors and other production facilities in order to design, test and produce new items close to home, and quickly.””
  38. Lack of emotional connection

  39. Counterfeits and unauthorized sellers

  40. !

  41. An opportunity for Amazon and their competition

  42. Coca Cola, the third most valuable brand in the world

  43. –Sandy Douglas, executive vice president of North America at Coca-Cola

    “Don’t think of e-commerce as a channel. It’s a way for consumers to research, to buy, to experience brands and then, ultimately, to have them have fulfilled..”
  44. Before e-commerce brands had no channel as quick and efficient

  45. Don’t think of Amazon as a channel

  46. Sell on Amazon

  47. The channel shapes what is bought

  48. People do not shop the same on Amazon as in

    retail shops. And so people do not buy exactly the same things on Amazon as they do elsewhere.
  49. Brands should create products and value to the consumer native

    for that channel.
  50. On Amazon how people decide what to buy, and what

    they end up buying is different
  51. What is a brand in the age of Amazon?

  52. Private-label is noise

  53. The marketplace is thousands of brands creators

  54. Amazon is changing pre-purchase the most (how customers decide what

    to buy)
  55. Changing pre-purchase created a market for micro brands and Amazon-native

    brands
  56. No one wants to sell on Amazon, but they have

    to
  57. What can a brand do?

  58. Strategy behind growth on Amazon

  59. VP of Marketplaces

  60. Maximizing on tools and services offered

  61. Getting the basics in place is a major step

  62. Organic vs ad-driven sales

  63. Advertising expertise

  64. Sell more. Get reviews. Repeat.

  65. Creating new products that stand out

  66. The opposite of “unprofitable to sell online” products

  67. Value which translates on Amazon

  68. Micro brands

  69. Data-driven product creation

  70. Fast and cheap iteration

  71. The New Face of Brands in the Age of Amazon

  72. THANK YOU! joe@marketplacepulse.com Juozas “Joe” Kaziukėnas