For Immediate Release
A synopsis of today’s Industry Outlook is presented below. The full article can be read at
The changing eCommerce environment, where consumers are increasingly connected, have prompted retailers to develop new sales strategies. While many of the big traditional retailers and companies with well-known brands, such as Levis, have opened their own online stores, others (including many smaller players) are increasingly tying up with websites like Amazon.com Inc. (AMZN).
Amazon has for some time depended on the Kindle platform to boost book sales. But considering the growing competition from tablets, particularly Apple’s (AAPL) iPad, the company decided to broaden the scope of the device. Therefore, the Kindle Fire was built to help not only book sales, but also sales of all kinds of other digital content, including songs and movies.
It is hard to tell exactly how this market will shape up given the recent launch of Google’s (GOOG) Nexus 7 and Microsoft’s (MSFT) Surface. We are inclined to think that all these players will continue focusing on what they do best, so we do not see Amazon in any danger right now.
Another recent development includes the sale of discount coupons, where Groupon (GRPN) appears to be the forerunner. Groupon and its closest rival LivingSocial offer discount coupons with a very low shelf life from local players looking for sales. The company offers huge discounts to attract buyers and collects a percentage of the sales thus generated.
This kind of business is very competitive, since it has very low barriers to entry. As a result, not just Amazon and Google, but also a host of other much smaller parties have started doing business in this format. Technology investments are also required in order to serve customer needs effectively. Considering the prospects, we don’t see the platform as a major contributor to e-Commerce sales in the near term.
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