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Trump may have beef with Amazon, but consumers can not get enough of it



President Trump is decidedly in the minority when it comes to disliking Amazon

AMZN, + 1.11%

According to a report by the online news agency Axios, which cites an unidentified source claiming that Trump was looking for ways to target the online retailer, the Amazon share back sharply. The White House press secretary, Sarah Sanders, downplayed the report later in the day just to get Trump to tweet the criticism of Amazon on Thursday morning and ruffle his stock again. "I voiced my concerns with Amazon long before the election," Trump wrote.

While Trump may not be a fan of Amazon or its billionaire founder Jeff Bezos, consumers will likely not turn down the company any time soon, analysts say.

And Trump's tweets are unlikely to significantly change consumer perceptions, said Scott Galloway, a professor at New York University's Stern School of Business and author of "The Four: The Hidden DNA of Amazon, Apple, Facebook, and Google." , "Trump's core base [supporters] who are inclined to like or dislike what he likes or dislikes is not Amazon's target market," Galloway said. "I see no evidence that consumers are worried about Amazon."

In 201

7, Amazon.com was ranked as one of the top American brands in the US, according to YouGov BrandIndex, the global analyst firm that tracks public perception of brands through daily online surveys. It was the fifth year in a row that Amazon.com surpassed the annual rankings and beat powerful brands like Netflix

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YouTube and Google

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Regardless, Amazon Prime – the $ 99-affiliate membership program for $ 99 a year – ranked third in the YouGov BrandIndex list. (Amazon did not respond to a request for a comment on this story.)

All in all, 33% more people have a positive opinion of Amazon.com than negative. For Amazon Prime, this number was 28% in 2017.

Top Brands Positive Buzz in 2017
Rank Brand
1 Amazon.com
2 Netflix [AmazonPrime
4 YouTube
5 Google
6 Nike
7 Dawn
8 M & Ms
9 iPhone
10 Apple
Source: YouGov BrandIndex

Do not Miss: Amazon is behind last year's biggest rent increase (and not in Seattle) [19659003] Amazon attracts not only positive opinions – but also loyalty. A survey by the Chicago-based research firm Consumer Intelligence Research Partners in June 2016 showed that 91% of Amazon Prime subscribers were renewed for another year in the first year. In 2014, more than 80% were Amazon Prime members: 96% of them decided to maintain their membership for a third year.

Why Amazon Remains To Stay in Consumer Favor

Amazon has earned this positive perception and loyalty by following in the footsteps of another-dominant retailer, said Michael Levin, partner and co-founder of Consumer Intelligence Research Partners. "The next analogy I can think of is Sears," Levin said. "Sears expects to be a retailer to provide financial services and home repairs."

Unlike 132-year-old Sears

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struggling to remain relevant as it closes deals and sales drop, Amazon's attempt to diversify its offer has paid off in the longer term. Amazon Prime has switched from a subscription service that offers free two-day shipping and reduced daily shipping for a service that provides consumers with movie and music streaming, photo storage, and access to a huge library of e-books.

With the Echo Smart Speaker and Alexa Virtual Assistant, Amazon is becoming a leading home automation vendor. And studies have shown that these devices further strengthen brand loyalty and encourage consumers to spend more.

See also: What Amazon's HQ2 means for homeowners, home buyers, and tenants in the chosen city

But Amazon might encounter the risks associated with ubiquity

The dominance of retail is not without Disadvantage. Take Walmart

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: When the big-box merchant became a giant in the American retail landscape, critics came out of the woodwork. The company was criticized for employing under-paid workers and importing too many of its products overseas. Documentary films showed how the retailer's low prices eventually forced many convenience stores to close the stores if they could not keep up.

Although Amazon is still lagging behind Walmart and other competitors in terms of revenue, Amazon is now – at least in the minds of many Americans – immersed in the role of the "800-kilo gorilla in the salesroom" that Walmart once filled Ted Marzilli, CEO of Data Products at YouGov and Head of Business Unit BrandIndex. That could open the brand for increased criticism.

Cracks are already beginning to show. Research has shown that Amazon damages local retail employment and that its warehouses can cause lower wages in the communities in which they reside.

Then there is a risk that Amazon will become a necessary evil, similar to a company like Facebook, which some users regard as a tool they are reluctant. But Amazon has a weapon against it, Levin said: Its strong customer service policy, which helps to counteract the negative sentiment on the part of buyers and Prime members.

Also read: Amazon is worth so much because its cloud business is the true unicorn of technology

And much like Facebook

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It will take much more than scandal to induce a mass exodus from Amazonia. "There is a lot of dissonance among consumers," Galloway said. "Consumers are talking a big game about social justice, but they want to deliver this little black dress for $ 9.99 and this espresso pot for free."

Why Trump Remains a Threat to Amazon

If there is a revolution against Amazon, it has not won by consumers, argued Galloway. Some argue that while Trump speaks big, he probably will not respond to his tweets. But if Trump's tweets indicate his political perspective, that would mean trouble for the retailer.

Some have said that Bezos' ownership of the Washington Post could become a hub for Trump due to the paper's coverage.

Hedge fund manager Douglas Kass warned Amazon this past July that it would soon find a government-led antitrust case as part of Amazon's acquisition of Whole Foods. "I was running low on Amazon today because I learned that there are initial discussions and due diligence in the Legislative Chambers in Washington, DC regarding possible antitrust opposition to Amazon's business practices," said Kass, Seabreeze Partners directs management, wrote at the time.

Japanese regulators raised antitrust concerns against Amazon's unit for the second time in two years this month.


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