Like every month, there are some other news pieces I didn’t elaborate on but still found interesting. I’ve shared my thoughts on the linked articles, which come from various sources. I hope you find them interesting! Let me know if you think I missed anything big.
Amazon-Walmart Rivalry and Loyalty Programs
Interesting article on the Amazon-Walmart rivalry. I agree with the author that the two companies are becoming increasingly similar, and loyalty programs could make a difference.
While Amazon has a massive assortment of items, I don’t think that’s a huge advantage beyond a certain point. How many brands of garlic presses do we really need? As long as the top brands are easy to find and there are affordable options, the sheer size of Amazon’s assortment doesn’t feel like a massive advantage anymore.
The gap also seems to be closing when it comes to fulfillment. Amazon might offer next-day delivery more often, but Walmart has an edge with its extensive network of retail stores.
Their dominance in the grocery category drives traffic to these stores, creating a stronger and stronger omnichannel experience. Plus, as we’ve seen with Temu and Shein, not every customer prioritizes fast shipping if they can get a better deal elsewhere.
I think getting people to subscribe to Walmart+ will be a big challenge for the company. Many people already have an Amazon Prime and/or Costco membership. But then again, people subscribe to five different streaming services, so why would three shopping memberships be unrealistic?
“Amazon vs Walmart Holiday Battle May Come Down to Loyalty Programs” – PYMNTS 11/22/24
Amazon Haul
Have you tried the new “Amazon Haul”? I have, and while there’s definitely room for improvement, I can see some potential value in this feature for customers.
The user experience, in my opinion, is lacking at the moment (let’s remember this is still a Beta version), and I hate that it’s only accessible in the app. There are fewer search filters compared to the rest of Amazon, which might be a way to simplify listing creation but ends up making it harder for customers to find what they need.
Another problem is the relatively small selection, which feels much more limited compared to what’s available on Temu. Again, this is a new feature, so we can expect more items to be added soon. Similarly, most items currently barely have any reviews, but this should come soon.
So why do I think some customers might like Amazon Haul? First, because it’s Amazon, a company many customers trust for the value it provides and its great customer service. Some buyers may also prefer purchasing from “an American company” rather than a Chinese competitor, even though the items are sold by third-party sellers based in China.
Another interesting aspect is that many of these items are already sold on Amazon. The difference is that customers now have the choice to pay more for next-day delivery or save money by opting for much slower shipping. We all love fast shipping, but the option to save could be attractive to many shoppers.
Will this be enough to steal market share from Temu? As of now, I don’t think so, but I’m curious to see what will happen. Amazon isn’t new to the ecommerce game, and I believe they have the resources to make this feature a success.
“Amazon takes on Temu” – DailyMail 11/15/24
https://www.dailymail.co.uk/sciencetech/article-14086549/amazon-temu-online-haul-low-prices.html
Would Increasing Tariffs Kill Temu?
Should apparel brands prepare for the death of Temu and Shein if tariffs increase next year? Not so fast.
“Nobody really wins a price war,” as the saying goes. This is especially true for Shein and Temu, even with potential increased tariffs and the elimination of the de minimis rule. I don’t believe these changes alone will be enough to kill the two Chinese giants.
First, they may find ways to minimize the impact of new regulations—such as moving production to countries less affected by tariffs, like Bangladesh or Thailand.
And let’s not forget that millions of businesses worldwide will also be affected. Tons of American companies import their clothing from China, and they too would lose competitiveness if their tariffs and customs costs increased.
We may even see Shein change its strategy and start selling higher-end items. I often think of Uniqlo, the Japanese brand many people love for its well-made basics using decent materials at reasonable prices. Could Shein move away from polyester and start offering cotton or wool basics?
Finally, the article mentions the need to educate consumers about the human cost of buying from Shein and Temu, for example the allegations of forced labor. While I agree this is an important issue, let’s not forget that major US and European brands like Nike, Adidas, and even Patagonia have faced accusations of working with questionable suppliers. True or not, these claims weren’t enough to kill these companies. Sadly, I believe there will always be customers willing to accept shady business practices for a better deal.
So no, I don’t think the end of fast fashion is imminent. The best way for apparel brands to stay relevant isn’t to compete with Shein and Temu on price but to provide value in other ways.
“How Can Today’s Apparel Brands Compete with Shein and Temu?” – Yahoo Finance 11/22/24
Does Black Friday still feel special anymore?
Does Black Friday still feel special anymore? Not as much, according to customers.
We’ve been seeing more and more deals and sales popping up in recent years. I still can’t get over the fact that some companies even call their sales “Black Friday in July.” I get the idea of extending deals to get customers to shop early, but let’s be real—these permanent promotions and flash sales are causing serious fatigue for customers.
For anyone on a tight budget, it can be really stressful to not know when you’ll actually get the best price on something you need. And for brands, standing out in this environment is getting more and more difficult.
The article tells us that “59% of shoppers are not strongly swayed by deals when choosing merchants.” I found that very interesting. Does it mean the economy is so great that no one needs to save money anymore? Or could it be that discounts just aren’t meeting customer expectations this year?
The article mentions factors like convenience and loyalty. This may seems like great news for brands, showing that getting the sale isn’t all about pricing. However, delivering things like convenience and loyalty are easier said than done, and I immediately thought of membership programs like Amazon Prime or Walmart Plus.
Early reports suggest that Black Friday 2025 may have been a success, but I think it’s more important than ever for brands to take a closer look at their performance and see if their BFCM strategy makes sense in the long term.
“Shoppers Want a Good Deal; More Than Half Still Pay Full Price” – PYMNTS 11/28/24
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