In its latest efforts to regain online market share with new services, Amazon.com, Inc. (NASDAQ:AMZN) launched its premium consumer goods service for its loyalty program members. The online retailer is aiming high-end products with a premium price tag and the service is likely to compete against the likes of Procter & Gamble Co (NYSE:PG) and Kimberly Clark Corp (NYSE:KMB).
Sunny Jain, Consumables Vice President for Amazon.com, said,
“Our obsession with customers and drive to continuously innovate on their behalf has led us to create Amazon Elements. The two things customers told us they want are premium products that meet their high standards, and access to information so they can make informed decisions, Amazon Elements offers both.”
Amazon.com, Inc. (NASDAQ:AMZN) is trying to take the customer experience to another level by offering critical information including the origin of its products and list of ingredients along with their specific purpose. The company has launched premium baby diapers and baby wipes receiving positive response from the customers.
Will Hayllar, OC&C Strategy Consultants, said that the launch of personal label is not a surprise and Amazon.com is simply following the market trend. He further added, “This is a sign of Amazon maturing as a retailer and certainly a sign that they’re getting some critical scale in a couple of pockets of CPG (consumer packaged goods).” The price range of products available at Amazon elements put it somewhere in between luxury and basic line products.
This is not the first attempt from Amazon.com, Inc. (NASDAQ:AMZN) to enter the grocery market. Amazon started its Amazon Fresh service to cater the daily need of customers including vegetables, fruits, bakery products, and dairy items. Amazon Fresh is working in 10 different markets and the company is likely to expand its product lines in near days. One thing is for sure, Amazon Elements is likely to add more pressure on existing consumer goods manufacturers.
This article has been written by Prakash Pandey.