While Amazon is head and shoulders above any other retailer in the world, with a massive online presence, it seems that Internet giant Google is not happy to sit on the sidelines. Over the last few weeks the company has announced an array of partnerships with the likes of Walmart and Home Depot with Target yet another confirmed partner. It seems as though the introduction of Amazon’s Echo system, which allows users to order products in their own home from Amazon using voice commands, has pricked the intrigue of competitors.
Massive retail market
You can imagine how people would be interested in sitting back, speaking into a smart speaker and ordering whatever they required. The Google Home “smart” speaker system is very similar to Amazon’s idea but obviously Amazon already has access to millions of different products. However, Google is now building up a very strong supply line with the likes of Target, Walmart and Home Depot offering a massive range of different retail products between them.
In reality nobody ever thought that Amazon would have the market to itself despite the fact that the Echo system is proving to be extremely popular. Even if the likes of Target, Walmart and Home Depot were selling large amounts of products through Amazon they pay for this privilege by giving away margin. When dealing with Google we are talking of a more equal partnership which should equate to a better share of profits. As more individual parties come on board the Google train, this will increase the popularity of the service with add-on purchases for all involved.
How could Google leapfrog Amazon?
Only a few weeks ago the idea that Google may be able to leapfrog Amazon in the world of online retail would have sounded ridiculous. However, there are signs Google is already working on an innovative new idea, with partners such as Target rumoured to be extremely heavily involved.
The phrase used was “digitally replicate the joy of shopping” which to those in the know seems like a nod to either augmented reality or virtual reality systems. These are not necessarily new ideas but the massive advances in technology of late make them a very different animal to that of a decade ago or just a couple of years ago. If Google and its partners could replicate the “joy of shopping” when sitting in your front room, how popular would this be?
Changing shopping patterns
When the Internet first hit the mass market many people suggested that online shopping would grow but would never challenge the high street. Many retailers know from bitter experience that the high street is under massive pressure and online retail sales now outnumber sales on the high street. This was the first major shift in shopping patterns and like the switch to either augmented reality or virtual reality, many said it would never happen.
The cost of augmented/virtual reality systems is much less today than it was just a few years ago. The systems are going to hit the mass market and what better way to crash through the mass market barrier than through a personalised shopping experience?