When Amazon arrives – threats and possibilities

5 juli 2018

Retail Sweden is in the largest transformation in the history and the need of analysis has never been larger. As one of Sweden’s top consultants within analysis and company development, highly-ranked retail expert and coveted speaker within consumer trends and retail – we don’t believe there is any better suited for answering some questions about Amazons arrival than Emma Hernell!  

Emma, the question on everybody’s mind - are there only threats behind Amazons arrival to Sweden or can we see any positive impacts on the Swedish market?
The retail industry can (and will be) affected but mostly books, toys and electronics industries are those afraid. But of course, retailers within food, furniture and clothing are looking over the shoulder too. But important to keep in mind is that when Amazon arrives, it can open possibilities for e-retailers to expand in other markets. E-retail today is 9% percent of the Swedish total e-retail sales. Until now the Swedish e-retail has had a decent time. The big, well-established chains haven’t really initiated their e-retail and the international competitors hasn’t reached Sweden for real yet.

Is Amazon applicable and receptive at the Swedish market?
Swedes already today shop for 700 million SEK at Amazons non-Swedish sites. With nothing like Amazon, Sweden’s e-market has been more of a shopping landscape, without a shopping mall. From the report that HUI did we can clearly see that the real effect on the e-retail market only will be shown when Amazon establishes in Sweden and especially if they will establish their membership service – Amazon Prime.

Is Amazon the real threat or is it a greater threat not becoming digitalized?
The whole digitalization, not only Amazons arrival, causes needs of new competence in the retail industry. Both in terms of new job titles and new tasks for existing employees. HUI showed in the report that young, newly graduated economic students are looking for jobs at company’s like IKEA and H&M. The digitalization gives retail companies possibilities to become attractive for young technicians and digital experts.

In the end, the result from the report showed that the retail industry will be concentrated on less, but greater actors, and online shopping platforms will grow when the consumers will go directly to Amazon or Zalando, instead of using for example Google. Actors who has a niched assortment, great service, local products and can give a guideline in the retail jungle can become a competitor.

Don't miss Emma’s predictions about Amazons arrival to Sweden:

  • How will the game plane change when Amazon establishes in Sweden?
  • How important is the loyalty program Prime to Amazons success in Sweden?
  • Which actors are most vulnerable and are there any winners at the Swedish market?

Listen to Emma Hernell at Customer Loyalty Conference the 27th of September!

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