Wednesday, October 18, 2017

Investors say these 8 businesses seem Amazon-proof

Home improvement

Home improvement

When homeowners need to repair, paint, or remodel their homes, being able to consult with an expert without paying a contractor's steep fees is an attractive option. For those who prefer help for this kind of project, major home improvement companies like Home Depot provide the brand-name reliability that individual contractors can't match. Amazon attempted to take over the home improvement industry with Amazon Local Services (which was later renamed Amazon Home Services), but it never took off.

Media/Cable/Telecommunications

Media/Cable/Telecommunications

The infrastructure needed to run a successful phone, cable, or internet service company would make a potential investment into telecommunications difficult, even for a company with Amazon's vast resources.

Consumer staples

Consumer staples

When it comes to buying everyday household products, consumers often don't plan ahead, waiting until they run out of toothpaste or paper towels before buying more. This means that they often need to buy household products immediately and will choose the nearest available store where they can do so.

Food Retail

Food Retail

This response is surprising given Amazon's recent acquisition of Whole Foods, but some investors think it may take Amazon longer to dominate the food retail industry than it hopes. Whole Foods' high prices have long been a drawback for more budget-conscious shoppers, a problem that Amazon's recent price-cutting efforts may not be able to solve.

Beauty

Beauty

Like home furnishing retailers, beauty companies like Sephora have the advantage of brick-and-mortar locations where customers can try different products before choosing their favorite. They can also offer advice on which products might be best for a given customer.

Home furnishings

Home furnishings

While some home shoppers are willing to buy furniture online without seeing it in person, others prefer home furnishing stores that allow them to get a better sense of how a couch or dresser might look in their home.

Autoparts

Autoparts

Though Amazon can deliver auto parts quickly and affordably, they don't have the connections to dealerships that auto part companies like AutoZone have. Auto part shoppers also prefer the expertise provided by dedicated auto part retailers, which Amazon can't match.

Dollar stores

Dollar stores

Shoppers at dollar stores care about price and location more than anything else. While Amazon is making efforts to improve shipping speeds from its warehouses and from its third-party suppliers, it can't beat the prices that dollar stores offer. And at $99 each year, Prime is not feasible for those on a tight budget.


Source: Business Insider India