How will AmazonFresh impact beauty etailers?

Same day delivery option prompts concern over impact on ‘big four’ supermarkets, but what about cosmetics?

Amazon has launched its AmazonFresh delivery service in the UK, starting with Amazon Prime members in Central and East London locations.

The launch of the service has sparked concern for the ‘big four’ supermarkets Tesco, Sainsbury’s, Asda and Morrisons with The Guardian stating that some analysts are predicting AmazonFresh might steal up to 3% of the UK grocery market share by 2020, equating to £1.4bn in sales.

Global delivery expert Fastlane's Head of Consumer Research David Jinks said: "Industry analysts are claiming that Amazon in the UK will capture no more than 3% of the grocery market from the current big players. That’s probably what book sellers told themselves 20 years ago; the electronic goods market believed ten years ago, and clothing stores five years ago. But the fates of Borders, Comet and now BHS highlight what happens when Amazon moves into your industry."

At the moment AmazonFresh is only available to its Prime customers in 69 London postcodes, but Ajay Kavan, Vice President of AmazonFresh, has made it clear that expansion is on the agenda. Kavan explained the limited roll-out of the service will help the company “hone and improve” its offering. He explained: “We will be very methodical and considered in how we roll this service out further in the UK.”

AmazonFresh has been available in the US for several years. Plans are also in place to roll-out the service to Australia, according to The New Daily.

Cosmetics delivery

However, AmazonFresh does not just deal in groceries. The online giant is also offering an extensive range of heath and beauty products including baby care brands. Among the brands on offer include Pantene, Maybelline, Rimmel, beautyblender, Garnier, Barry M, Look Good Feel Better, Mavala, Eylure and Molton Brown.

AmazonFresh is uniquely giving consumers the option to filter products by ‘Under £1’ in the beauty category. . . .

This is a small extract of the full article which is available ONLY to premium content subscribers. Subscribers sign-in (top right) to read the article.

Or

Subscribe now to premium content on Cosmetics Business

Companies