The convergence of two of the worlds continues with Amazon acquiring Whole Foods and Walmart acquiring Jet.com and Bonobos.

The convergence of two of the worlds continues with Amazon acquiring Whole Foods and Walmart acquiring Jet.com and Bonobos.

What does this mean for Private Label Brands?

There is now plenty of potential that brands could be dis-intermediated, if you will, from the retail position that they have helped defined over the past century.

These major online companies now have a presence in offline stores, where before they didn’t.  Now they can promote their own private label brands.

Imagine the convenience of Amazon leveraging their Alexa products (the wireless dot and echo speakers and dash button):

An example of this is that Amazon has used their own position as the starting point of shopper-consideration to push their own private labels through the Amazon website and through their Alexa products.

We’ve already seen it with batteries:

As Whole Foods private labels enter the fray, it’s possible that products such as cereals and cookies could be subjected to the same fate as battery companies. Battery companies were left completely battered following the loss of Amazon as a key e-commerce foothold once the company debuted their own product line to rival the battery companies.

Jet.com is already doing it after being acquired by Walmart:

Jet.com has also been phasing out any Costco private label products following the takeover by Walmart, so there is certainly precedent to suggest that Amazon could do the same with Whole Foods.

So get ready, if you have a great product that sells well on Amazon, you could have the opportunity to get product placement in Whole Foods and drastically improve your brand exposure.

Referenced Article: https://www.forbes.com/sites/steveolenski/2017/07/21/what-the-amazon-and-walmart-acquisitions-could-mean-for-retail-brands/ 

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