World’s largest e-commerce company Amazon is optimistic that shoppers buying discounted organic Thanksgiving turkeys at their Whole Foods this week will most likely include an Echo digital assistant as part of their shopping list. The company used logic to explain it as they believe that those gadgets will still be functional in homes long after leftovers have finished.
This holiday season will be the first for Whole Food after the company was acquired by Amazon. Amazon on its part is expanding way above its normal year-end strategy of winning wallet share from rivals Wal-Mart Stores Inc., Target Corp., and EBay Inc. The e-commerce company is using the holiday season to take a lead on voice-activated smart home speakers, a market it believes would boom with rivals Google and Apple also look to benefit from the market.
Analysts expect that online shopping during the holiday season in the U.S will increase by 14% to a figure around $107.4 billion. This is an improvement from the 11% increase that was witnessed last year. Even though Amazon is expected to capture more than half of the sale during the period, the company is already looking forward as they want their electronic devices to hit homes before that of Google and Apple.
According to RBC Capital Markets, Amazon will likely generate around $5 billion by selling their audio devices within the next three years. This is the reason why the company has been showcasing their products at several events and locations, both online and offline. Their offline locations include Whole Foods, malls and shopping centers, its 13 bookstores and even at select Kohl’s Corp., department stores in Chicago and Los Angeles.
Their Echo devices are also seen on their webpage as online shoppers have advertised the product every step of the way. Suzanne Tager, a retail analyst at Bain & Co stated that “They are making a huge investment to push all of their Echo devices and the Alexa platform in general. One of the most important pillars of growing brands has always been visibility and distribution, and they are trying to win the penetration race by getting more devices on the street.”
Amazon has been in the audio device sector for three years now, with their first gadget becoming a hit. Amazon has improved on that as they worked with developers to incorporate features and link other devices such as thermostats, garage doors, and cars to their devices. Rival companies Apple and Google have been playing catch-up with Amazon ever since then.