How Amazon Continues to Raise the Bar - US - August 2019

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
Top Takeaways
The issues
A self-fulfilling prophecy
Figure 1: Perceptions of Amazon shopping process, by key demographics, June 2019
The more the merrier
Figure 2: Amazon revenue and operating income by segment, FY 2018
From clicks back to bricks
Figure 3: Interest in in-store grocery shopping innovations, by frequent amazon shopper, June 2019
Who’s holding out?
Figure 4: Amazon Shopping Behavior, Prime Membership, by key Demographics, June 2019
What it means
AMAZON OVERVIEW – WHAT YOU NEED TO KNOW 
Far more than second best
More than just what’s in store
Integration leads to domination
Grabbing grocery market share?
Content leads to commerce
UNDERSTANDING AMAZON
Punching above its weight
Figure 5: Comparison of top five US retailers, 2018
More than just ecommerce
Figure 6: Amazon revenue and operating income by segment, FY 2018
AMAZON’S INNOVATIONS AND INITIATIVES: RETAIL 
We control the horizontal and the vertical
Anywhere and anytime you want it
Figure 7: Interest in online delivery options, June 2019
From online to IRL
Figure 8: Amazon Go – July 2019
AMAZON’S INNOVATIONS AND INITIATIVES: CONTENT 
Gift with purchase or Trojan horse?
Figure 9: Amazon Prime Video – July 2019
A sound strategy
Figure 10: Smart speaker ownership and purchase interest, by brand, March 2019
THE AMAZON SHOPPER – WHAT YOU NEED TO KNOW 
Amazon shopping is frequent and growing
Pleased with Prime
Shoppers like Amazon’s ease and selection
Delivery timing, locations rank less well than experience
Raising the bar and setting the standard
THE AMAZON SHOPPER
Amazon shopping frequency rising
Figure 11: Shopping frequency, online in general versus on Amazon, October 2018 and June 2019
Room to grow
Figure 12: Shopping frequency, online in general versus on Amazon, by age and household income, June 2019
Parents the prime purchasers
Figure 13: Shopping frequency, online in general versus on Amazon, by parental status, June 2019
Missed opportunity with Asians
Figure 14: Shopping frequency, online in general versus on Amazon, by race and Hispanic origin, June 2019
AMAZON PRIME MEMBERSHIP
Prime membership on the rise
Figure 15: Prime membership, by key demographics, October 2018 June 2019
Older, affluent consumers have longest tenure
Figure 16: Rate and tenure of Prime membership, by age and income, June 2019
Rural consumers the most loyal
Figure 17: Rate and tenure of Prime membership, by area of residence, June 2019
Satisfaction with Prime is high – and growing
Figure 18: Satisfaction with Prime membership, October 2018 and June 2019
Satisfaction levels particularly high for key groups
Figure 19: Satisfaction with Prime membership, by key demographics, October 2018 and June 2019
PERCEPTIONS OF AMAZON SHOPPING EXPERIENCE
Consumers find Amazon easy and comprehensive
Figure 20: Perceptions of Amazon shopping experience, by age and income, June 2019
Frequent e-shoppers enjoy the Amazon experience
Figure 21: Perceptions of Amazon shopping experience, by online shopping frequency, June 2019
Hispanics enjoy visiting Amazon
Figure 22: Perceptions of Amazon shopping experience, by race and Hispanic origin, June 2019
PERCEPTIONS OF AMAZON SHOPPING PROCESS     
Process viewed somewhat less well than experience
Figure 23: Perceptions of Amazon shopping process, by age and income, June 2019
More than half of frequent shoppers prefer Amazon processes
Figure 24: Perceptions of Amazon shopping process, by shopping frequency, June 2019
Parents appreciate convenience
Figure 25: Perceptions of Amazon shopping process, by parental status, June 2019
Locations most important for urban dwellers
Figure 26: Perceptions of Amazon shopping process, by area of residence, June 2019
AMAZON SHOPPER ATTITUDES
Majority believe Amazon sets the standard for convenience
Figure 27: Attitudes of Amazon shoppers, October 2018 and June 2019
Older shoppers more skeptical of Amazon-branded products
Figure 28: Attitudes of Amazon shoppers, by age and income, June 2019
Amazon redefines convenience for its frequent shoppers
Figure 29: Attitudes of Amazon shoppers, by Amazon shopping frequency, June 2019
ECOMMERCE INTERESTS – WHAT YOU NEED TO KNOW 
Time is of the essence
Online grocery shopping still in early stages
Streaming has strong appeal for key audiences
USE AND INTEREST IN ECOMMERCE INNOVATIONS
Consumers want control over delivery timing
Figure 30: Interest in delivery innovations, by age and income, June 2019
Parents prize convenience
Figure 31: Interest in delivery innovations, by parental status, June 2019
Frequent shoppers most open to new types of delivery
Figure 32: Interest in delivery innovations, by onilne shopping frequency, June 2019
Room to improve on packaging
Figure 33: Interest in packaging innovations, by key demographics, June 2019
USE AND INTEREST IN GROCERY INNOVATIONS
Few doing most shopping online
Figure 34: Grocery shopping channels, by age, June 2019
Young, affluent most open to new store experiences
Figure 35: Interest in in-store grocery shopping innovations, by age and income, June 2019
Frequent online shoppers want to see stores change
Figure 36: Interest in in-store grocery shopping innovations, by online shopping frequency, June 2019
Convenient delivery compelling for online grocery
Figure 37: Interest in online grocery shopping innovations, by key demographics, June 2019
STREAMING CONTENT AND SERVICES
Age and income significant drivers of subscribership
Figure 38: Streaming video service adoption, by age and income, June 2019
Disney+ has highest subscription interest
Figure 39: Awareness and interest in streaming video services, June 2019
Key target audiences have strong interest in streaming services
Figure 40: Awareness and interest in streaming video services, by key demographics, June 2019
Content leading driver of subscriptions
Figure 41: Reasons for subscribing to streaming video services, June 2019
Ad avoidance more important for key audience group
Figure 42: Reasons for subscribing to streaming video services, June 2019
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations