Amazon go- The future is looking really cool

This week, Amazon finally launched Amazon-go store. Yay!!!

This store has been in testing for over 1 year and was open to Amazon employees in between, for well not shopping but test driving. That must be fun test, on Amazon's dime.

Instead of training the employees to run the store, they were training the zillions of cameras, sensors and working on recalibrating the processes. 

Reports were that when things were moved around[scenario, where you walk in with your child and they let loose], there were errors reported.

However, most of that seems to be perfect now.

It's a big step forward for everyone and that's why every media outlet is going ga-ga and every retailer is sweating.

For those souls, who don't what Amazon go is?

I know you are there!

It's a physical store, launched by Amazon as an extension to their online giant brand, and also as an experiment to disrupt typical retail.

how is disruptive, you may ask?

There is freakin no checkout lane, and there is no cashier [job category which ranks #2 in North America in terms of employement].

You check-in to the store using your phone and Amazon app, pick what you want from the shelves and just walk out.

Yes:

Just walk out. the cameras, sensors and their complex circuitry will keep count of what you took from where, and charge you for that.

I am dead excited to check this store out!

Here are some thoughts on this expensive and beautiful experiment of  'amazon-go', how it will disrupt with industry and how the industry is already changing :

1. Amazon really is holding the entire retail industry by the balls. with e-commerce, they have taken the lions share of the retail sales already, and continue to hurt big box, specialty retailers of all types and sizes. 
2. This experimental store brings the biggest nightmare to reality- replacement of people with automation. And this scares the shit out of everyone. What if instead of a small[gas station size] store concept could get rolled out to a full-size store, like whole foods, Walmart???
1. By the way, if you didn't know Walmart has already been working on launching 'scan & go' stores concept, where people can shop and scan items as they go through the store, and just pay through the phone directly without going into a checkout lane or cashiers etc. They are enabling stores 1 by 1 and eventually catch up and it sounds pretty solid use case. List of these stores is mentioned when you go to iTunes here. 
3. The scan and go, or Amazon go store models will continue to evolve. My guess is a couple of years and these will really start sprouting. There is a lot of investment and infrastructure needed, while Amazon can do it, I sense it would be a couple of years before these become mainstream. 

However, We are already seeing that the items in commodity space are being challenged continuously as our buying behaviors change. Here is how

1. Subscription Based buying of commodities (dollar shave club, amazon's quick order buttons) is super hot. more and more people are just going for reordering or subscribing. 
2. Order online and curbside pickup- another concept some groceries and in fact Walmart too launched, especially to handle perishables. a smart model. I strongly feel grocery will see this become a bigger and better more.
3. Order online and home delivery- grocers continue to face heat in this segment as they are dealing with perishables where storage, delivery poses a different set of challenges. the above model in #2 has suited and has done well with ASDA in the UK.
4. In fact, a lot of other categories which are non-commoditized are falling for the subscription model- food subscription companies like a blue apron, plated etc, clothing subscription like bomb-fell, sunglasses subscription and so much more.
5. More and more retailers will need to provide a mix of services where the client is drawn in for a host of other services in-store, than just regular stuff. I wrote about kohls and news about it resizing & bringing in an NCT.
6. Retailers will also need to focus on extending their brand presence by going in with smaller stores which cater to specific neighborhood needs. (Target's smaller store just next door to Texas Uni, Austin)
7. Most importantly, they will need to create more of their own brands, which not only drives customer loyalty but also drive up revenues & more control on packaging, marketing etc [archer farms from target, Kirkland from Costco, great value from Walmart etc]
8. Online/e-commerce: Well, it has been playing its significant part already and that's why we are seeing this revolution. in next few years, we will see a tighter collaboration of e-commerce, order management systems with stores, and their supply chain to perform in a harmony which all the companies have been dreaming about.
9. Mobile is not going to be a differentiator anymore, but instead a necessity. It would be -adopt or perish. Period.
10. IoT, wearables will continue to play a significant role in driving the commodity markets and an excellent medium for 'discovering' new offerings or for brands to engage with people or for quickly be done with 'commodities' shopping. How much they will drive actual 'buy' is something to be watched out for?

So these are some of my initial thoughts. what do you think where Retail is headed? do share your thoughts in the comments section below.

If you liked this article, you would also like:
My Experience of shopping at a walmart Scan & go store
Why are companies big on payment systems? 

Electronic Shelf edge display in North american retail 

Kohls & NCT