Sunday , May 28 2023

Spain: The Amazon brand white runs strongly in & # 39; country


Hacendado and Mercadona have another reason to worry.

Amazon, the company that practically invented trade online, Years ago determined to revolutionize the sector & # 39; food. Want to store altogether and to cover the food has a specific strategy. The food sector is only partially affected by crises, because families can really reduce their costs even when income cut & # 39 ;. This makes a very big market. For example, in Spain, spending on food exceeded 100,000 million in 2016.

To give an example of the commitment of the Amazon for food, bought last year, the supermarket chain Whole Foods and now aims to reach all Americans with their offer. In Europe it has been rumored for some time after they purchase & # 39; big chain, such as Carrefour or DIA. But at the moment, and without relevant procurement strategy are promoting to attack the market is the use of & # 39; white markings.

The market in Spain

In Spain there is a clear dominatur of the food market and is Mercadona. It has & # 39; 24% share, compared to & # 39; 8.5% of & # 39; Carrefour, which is the second. The percentage online a & # 39; this sector is still low, is about 1-2%. And Mercadona also dominates, b & # 39; & # 39 share, 46% (this data was provided by the director & # 39; Mercadona Tech). Whoever purchases on Mercadona Online surely be surprised, because the experience leaves much work & # 39; jiġib.

Therefore Mercadona is such an important actor, but had a bad experience online, is also able to dominate that market. Then consider how he obtains it.

Amazon has been promoting sales & # 39; food products in Spain for some time. The first thing that has put its catalog products indelible, something relatively simple, but not long after he began selling fresh produce through its Prime Now platform in & # 39; Madrid, Barcelona and Valencia, b & # 39 ; rapid deliveries (up to 2h of the order) and made the day supermarket logistics.

This has, according to the study & # 39; The Cocktail, Amazon has a quota & # 39; online sales of food & # 39; 14%. Although this study says that Mercadona has 22%, compared to & # 39; 46% we said before. Regardless of the figures, the relative data is clear: the leader is Mercadona and second place is disputed between Amazon and Carrefour. But all for a very small market in total but growing strongly and will continue to grow, as seen in the United States.

The Amazon strategy

While Amazon does not buy supermarket has a presence in Spain (as I said, the rumors pointed to a Carrefour and Dia, though before the seizure of the stock market) the following strategy is clear. On the one hand we catalog & # 39; products indelibly in your store "normal", b & # 39; fast and free for those vessels registered in & # 39; Mamour Prime.

On the other hand, has Now Prime store for residents & # 39; Madrid, Barcelona and Valencia b & # 39; deliveries in & # 39; less than an hour (at a cost) or in & # 39; siegħtejn (no cost a minimum amount of & # 39; order). Here are fresh, in fact it is a great power. That and express deliveries, not like Mercadona whose deliveries are several days or Carrefour to give the & # 39; day.

But the Spanish market has its particularities. Most major one is that we usually buy white label products, which are cheaper. The main reason is that we used very well: Mercadona has some white markings & # 39; very good quality.

So, Amazon also launched its white markings. In the non-food always had Basics & # 39; Amazon, but now food met & # 39; Happy Belly for a few months and Prime wickedly.

And we should be aware of & # 39; another issue: Amazon usually concealed white markings. It appeared over the years, most of the products they sell are, in fact, manufactured by Amazon, but not advertised as such. There is some research that discovered dozens of & # 39; white markings hidden from Amazon.

S & # 39; it why do it? There are several candidates, none of the 100% kuntrastat because Amazon does not speak about it. The first one can & # 39; be not interfere companies using the platform of their logistics, because if they are discovered to sell their own product can leave the platform. Another reason you & # 39; & # 39 has earned; margin: when Amazon discover that there are a range & # 39; products sell very well, she decides to timmanifatturaha, put it at a competitive price and promote it in & # 39; search. And another reason less bad is complete segment & # 39; products: if for example you want to sell several bags but few brands are encouraged to put them, Amazon put their models to the store seems more abundant, and b & # 39; so attract customers and other brands.

It is as feed quality is very important and therefore the brand recognition. Then the strategy & # 39; hidden firms do not think it will work well in & # 39; in this case, if you're doing it. And at the moment seems not: only products & # 39; known brands and these new white markings.

The strategy & # 39; Mercadona

Of course Mercadona is more transparent than Amazon, at least & # 39; As x & # 39; divide with its white firms. It has been promoting its brands for many years (Hacendado, Bosque Verde, etc.), Which are generally & # 39; good quality and prices adjust. This has enabled him to reduce his catalog, opened with & # 39; powerful way for its products and efficient when it has less variety.

Warehousing & # 39; Mercadona

In the online issue already seen how are the leaders despite having very bad website and despite having logistics based on their stores (which are many, in 1627, but not & # 39; have flexibility). However, already have prototype & # 39; new website, much more modern, f & # 39; & # 39 in tests, Valencia and b & # 39; centralized loġistrazzjoni. The experience of the new website is very good, more focused on the grid and large lists & # 39; purchase than on the product page (to defend strongly); Amazon is more focused on the product page and it is a problem to do with strong buying & # 39; most items, although Prime Now is less charged.

So, the leader does not rest on his achievements and will have a much better website, b & # 39; Mobile applications. It has the advantage of having known products, stores & # 39; proximity, without good brand murky issues (such as strikes by staff of the store or tax evasion) and more explicit focus on food.

We are dealing with & # 39; Mercadona problem?

Launch & # 39; & # 39 white markings; Amazon is a clear indication to go to the market & # 39; food, and Mercadona should be very aware. Customers pay for the Amazon Prime service with jarawhiex a lost cost (though it is) but as an investment, and like taking away e-commerce other websites to save on shipping costs (although other websites are cheaper even add shipping costs) can also be used by Mercadona. The problem was that Amazon was food prices and white marks (hidden or not) you & # 39; to shock.

The war will be long and hard, but Mercadona also has its advantages: it has a lot of experience in Spain, good quota, recognition and ultimately decent online strategy. For me, the key is that even if its website is very bad and m & # 39; has a mobile application, is the leader in Spain, and online. It is possible, therefore, to underestimate x & # 39; they are people who appreciate their products on other factors.

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