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Bloomberg's Goyal, Clavis's Chaudhury: Amazon Prime Day (Audio) · Bloomberg Intelligence

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  Speaker 1: and that's a Bloomberg business flash. You're listening to taking
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  Speaker 1: Stock with Kathleen on Bluebird Radio. One hundred thousand deals,
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  Speaker 1: ten countries. Yes, Amazon Prime at Sale begins today. The
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  Speaker 1: company is hoping to best their performance of last year,
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  Speaker 1: in which they sold four hundred million dollars worth of merchandise.
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  Speaker 1: Here to tell us more about Amazon and Prime Day
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  Speaker 1: is Punamgyal, expert and analyst for retail for Bloomberg Intelligence,
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  Speaker 1: put on tell us about this day. How important is
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  Speaker 1: it for Amazon? It's actually very important because it's their
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  Speaker 1: way to get more Prime members to join, and once
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  Speaker 1: they joined, it probably become a Prime member for life.
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  Speaker 1: So it's to repeat purchase that they're really targeting more
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  Speaker 1: than just the sale, So they're looking for more people
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  Speaker 1: to sign up to be Prime customers. That makes sense.
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  Speaker 1: But in terms of the sales, I noted, for example,
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  Speaker 1: that consumer electronics seems to dominate Prime Day spotlight deals.
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  Speaker 1: Is that accurate um? That's typically accurate because that is
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  Speaker 1: what dominates Amazon deals even on Black Friday or the
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  Speaker 1: holiday season. So that is true. But in terms of
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  Speaker 1: the deal so far, the items that we've been pricing,
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  Speaker 1: it's really ranged from a discount of about thirty on average.
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  Speaker 1: And this is just across you know, like thirty to
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  Speaker 1: fifty items that we've randomly selected. There are discounts as
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  Speaker 1: highest seventy percent, fifty percent. Especially video games there's a
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  Speaker 1: big discount there. Um, big screen TVs we see a discount.
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  Speaker 1: But you know, we're seeing a lot of price matching. Um,
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  Speaker 1: it's interesting when you look at Amazon versus Walmart. Walmart
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  Speaker 1: has knew this year a section called Dare to Compare
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  Speaker 1: which prices is um the item across Amazon target best
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  Speaker 1: buy to themselves up front for you, and it matches
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  Speaker 1: that almost every thirty minutes or so. Well, point, I
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  Speaker 1: understand that Walmart is offering free shipping on all items
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  Speaker 1: along with what they call rollback deals. They've been offering
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  Speaker 1: a free thirty day trial for their shipping Pass as well. Yeah,
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  Speaker 1: that's absolutely correct. You know, Um, Amazon has been taking
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  Speaker 1: share of e commerce and Walmart needs to step up
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  Speaker 1: their game. So this is their first attempt this year
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  Speaker 1: with Shipping Pass, which is a program similar to Prime
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  Speaker 1: at half the price. It aims to also ship product
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  Speaker 1: in two days or less for forty nine dollars a year.
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  Speaker 1: They're giving it for free, as you said, for dirty
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  Speaker 1: days and this week only they have free shipping on everything. Well,
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  Speaker 1: I want to bring in a Suprea Chowdery, the chief
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  Speaker 1: marketing officer of Clavis Insight, joining us from Boston home
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  Speaker 1: to Bloomberg and wondering if maybe you can give us
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  Speaker 1: a little insight, Supria, on some of the specific deals
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  Speaker 1: and whether they are really any better than the deals
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  Speaker 1: that are offered by Amazon on a regular basis. Sure, um,
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  Speaker 1: in terms of actual promotional discounts, they probably average similar
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  Speaker 1: to the deals that you see UM from Amazon on
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  Speaker 1: daily basis. What is really big here is the fact
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  Speaker 1: that the number of deals UM that Amazon is offering
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  Speaker 1: during this period is much larger much so. For example,
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  Speaker 1: what would be a larger component, I mean, is it luxury,
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  Speaker 1: It's a It's a larger number of of deals at
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  Speaker 1: any given time. And in terms of the types of
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  Speaker 1: deals that they are spotlighting, the spotlight deals today were
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  Speaker 1: really focused a lot on consumer electronics, so they had
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  Speaker 1: flagship flagship deals on Samsung Um Curve TVs and the
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  Speaker 1: iBOT Your Room Barber two featured deals that were really
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  Speaker 1: hot and sold out by by lunchtime. But it is
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  Speaker 1: very focused on the electronics and laptops and also Amazon's
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  Speaker 1: own fire TVs and and tablets and other things. I
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  Speaker 1: wanted to ask you about that, for example, the Amazon
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  Speaker 1: devices that you just mentioned plus the Alexa, the voice
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  Speaker 1: activated device from Amazon. Is that also part of the
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  Speaker 1: strategy to get people to just be hooked into the
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  Speaker 1: Amazon ecosystem. I would think it is. Um, they have
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  Speaker 1: a very big percentage of the deals on their own products. Uh,
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  Speaker 1: and you know products those products definitely hook you right
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  Speaker 1: back into the Amazon Amazon ecosystem. So uh, you know,
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  Speaker 1: you can sort of see the deepening of of of
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  Speaker 1: the Prime memberships, expansion of Prime and trying to convert
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  Speaker 1: people that are not on Prime onto Prime. Um with
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  Speaker 1: this with this Prime Day, Prime Day promotion, this this
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  Speaker 1: big shopping holiday that they're creating, and then you know,
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  Speaker 1: getting more and more people into Amazon products that tie
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  Speaker 1: you to that ecosystem. As as mentioned, there are other
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  Speaker 1: retailers that are a sense piggybacking off of this Prime
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  Speaker 1: Day as sale. Is that something that will just continue
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  Speaker 1: and give us some examples of the companies that are
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  Speaker 1: looking to capitalize on this. Sure Walmart first comes to mind.
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  Speaker 1: They did it last year two they are picking back
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  Speaker 1: on it, but not just for the day, for the months,
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  Speaker 1: they're adding rollbacks. So that's one retailer that's fighting for
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  Speaker 1: their share because as customers convert to prime, that's one
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  Speaker 1: last customer for for Walmart longer term. You also have
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  Speaker 1: what's interesting on the apparel side, Macy's. You know, they
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  Speaker 1: said black Fridays back in July, which isn't a category
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  Speaker 1: that you would traditionally think Amazon competes in, but it
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  Speaker 1: is a category that they're definitely making a bigger plan
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  Speaker 1: for apparel. So on their home page today for Amazon
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  Speaker 1: you see apparel thirty person off, So they are making
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  Speaker 1: a push to be bigger in apparel, and Macy's a
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  Speaker 1: fighting back. Lord and Taylor is fighting back with extended
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  Speaker 1: promotions on their website, including free shipping. Yes, I noted
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  Speaker 1: that Lord and Taylor offering a triple savings event. They
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  Speaker 1: say off site wide free shipping on every order and
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  Speaker 1: twenty dollars off if you spend a hundred and seventy
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  Speaker 1: five dollars, so it discounts all across. That's right, all right,
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  Speaker 1: thank you very much. Put Amcoyal, a retail analyst and
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  Speaker 1: expert for Bloomberg Intelligence. Our thanks also to Cuprea Chowdery,
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  Speaker 1: chief marketing officer for Clavis Insight, joining us from Boston,
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  Speaker 1: of course, home to Bloomberg. Twelve hundred Amazon shares faring well.
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  Speaker 1: Maybe they're on sale today, down about three quarters of
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  Speaker 1: a percent, but they're up ten percent so far this year.
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