“You know, if we try to out-Amazon Amazon, then that’s a losing battle,” Reed Hastings, Netflix CEO told CNBC. “What we have to do is be the specialty play. We are trying to be Starbucks and they are trying to be Walmart. So, we have to have brand intense love and focus.”
On a daily basis, it seems we hear about Amazon entering another marketplace. Books, music, movies, food, apparel and more. Many companies are fearful. The question isn’t what you should fear, but rather, what is your Amazon strategy?
- Don’t compete with Amazon’s infrastructure. “Retailers are better off touting their consumer experiences than going after the e-commerce giant’s massive infrastructure,” shares Deliv CEO Daphne Carmeli. In fact, consider how you might work with them as an alternative distribution channel for excess product, one-time gift purchases or exclusive products (nice job, Loot Crate).
- Don’t compete on price or selection. Focus on value creation.
- Do compete on the consumer experience. This is it — the secret sauce. By creating a personalized consumer experience that resonates with your members, subscription box companies can differentiate themselves from the convenient, but less personal experience of Amazon. Another place for brands to stand out, where Amazon’s personality is not as evident, is social media. Start utilizing Twitter and creating shareable content on Instagram.
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