retail news in context, analysis with attitude

Bloomberg reports this morning that Amazon has been having talks with Bangalore-based Flipkart Online Services, with the possibility that it could make a bid for the Indian company.

If it did so, it would likely be a competing bid to one place by Walmart, which also has been negotiating with Flipkart for buying a majority share of the company.

According to Bloomberg, “India is seen as the next big potential prize after the U.S. and China with Kotak Institutional Equities estimating the online market may reach $28 billion by 2020. The e-commerce battle in India has intensified as the burgeoning market lures global giants.

Business Insider reports on a new study from One Click Retail suggesting that “Amazon's next private label launches will likely involve pet carriers, diapers, and patio heaters.”

According to the story, “The retail data company has studied Amazon's strategy for its private label expansions, and has identified three key steps the e-tailer takes before launch:

“Amazon slowly releases sample products within various categories under one brand umbrella. When launching its baby care brand, for example, it launched diaper genie refills first, and then debuted its own branded categories of diapers and baby food in succession over the next few months. This period is also marked by promotions to help the product categories pick up momentum.

“The e-commerce giant then monitors the product categories for a period of six to 18 months. It monitors growth in sales, and compares each category's performance to that of its competitors. From there, Amazon decides whether it should discontinue a category, keep producing the category as-is and continue to monitor it, or increase the selection of products in the category.

“Then it has a mass release of new products in the categories that perform well.”

Business Insider says that the new study concludes that “three categories — pet carriers, diapers, and patio heaters — have had successful trial periods, making it likely that they will be Amazon's next private label launches.”
KC's View: