retail news in context, analysis with attitude

Tech Crunch has a story about a new NPD Group study saying that owners of Amazon's Echo - a voice recognition computer that allows for extensive interaction between the consumer and the computer - "spent around 10 percent more after they bought the voice-powered smart speaker than they did before," and a six percent increase "in the overall number of purchases made by Echo owners on Amazon.com when compared to their pre-Echo existence."

The story notes that "it’s not a huge deal for other retailers yet because of Echo’s somewhat limited reach thus far – NPD says it estimates around 1.6 million have sold thus far. But it’s a trend that could be very good for Amazon long-term, especially as it brings the Echo Dot back to market at a new, more affordable price point."

Tech Crunch writes, "We all suspected the Echo’s purpose was – at least in part – to drive more Amazon sales. And that’s exactly what’s happening."
KC's View:
There was never any doubt in my mind what the Echo's purpose was ... it seemed clear to me that it is largely designed as a vehicle that allows people to buy more stuff from Amazon. Which, by the way, is why it makes no sense to me for other retailers (Staples, Lowes) to be selling it ... because it is designed to steal sales from them.