WAL-MART VS Amazon Battle Between Goliath And Godzilla

< p > WAL-MART and Amazon are such large companies that there is no suitable word to describe the competition between the two companies for the hegemony of electronic business.

This is not a confrontation between David and Goliath.

If WAL-MART is Goliath, then Amazon is Godzilla.

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< p > the two big retailers are dominant in their traditional spheres of influence.

Amazon used to sell books only, but now it has become the largest online store in the world.

WAL-MART is the largest retailer in the world. The company's revenue of up to US $469 billion in 2012 was dwarfed by Amason's $61 billion revenue in the same period.

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< p > however, WAL-MART is in a backward position on the Internet.

Although WAL-MART has provided specific data on its online sales in its financial data, Neil Ashe, head of WAL-MART's e-commerce department, recently said that the company plans to increase its e-commerce revenues to $9 billion in 2013, equivalent to 2% of the company's total revenue.

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< p > now, as WAL-MART's physical retail business is still booming, online sales may not be important, but it will have a significant impact in five years, said Nelson, an expert at market research company.

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< p > according to Nelson, e-commerce will have more room for growth than any other subdivision of retail industry by 2017, with an average annual compound growth rate of 11%.

The super shopping center, founded by WAL-MART, ranks second, and its annual compound growth rate is estimated to be about half that of online shopping.

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WAL-MART P is trying to catch up with Amazon's most successful strategy in online retailing.

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< p > they are trying to provide locker service, which is one of Amazon's iconic services, allowing shoppers to order products online and then pick up goods at the store.

This is very important for WAL-MART's customer base, because a quarter of its customers say they do not use debit cards or credit cards, or even bank accounts.

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< p > they are trying to provide "day service" service, and even take a step closer than Amazon: trying to crowd the parcel delivery task to some customers.

They are investing in Internet technology to improve the appearance and ease of use of WAL-MART website.

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What are the measures WAL-MART can take to win in the field of Internet sales? Nelson Hale, a senior vice president of consumer and shopping research, has an answer. "The average annual compound growth rate of e-commerce is 11%, but the average annual growth rate of sales of packaged consumer goods - food, grocery, daily necessities -- is about two digits - nearly 20%," Hale said. "This is the domain that WAL-MART must contend for: perishable goods (mainly perishable food)" P Todd.

They need to build corresponding infrastructure in this field. "

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Less than P, WAL-MART is not yet ready to sell fruits and vegetables online.

Service delivery on that day is still under way in a few states.

The core of its online grocery retail business, WAL-MART Walmart To Go Delivery, is still in the trial stage.

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< p > Hale believes that while launching its consumer goods delivery service, WAL-MART should focus on smaller regional network retail companies, such as FreshDirect and PeaPod.

And he sees this supermarket giant's website as a viable consumer destination for future sales of non perishable goods such as diapers as long as its infrastructure allows consumers to set up regular delivery service (which is popular on the online sales website of baby products Diapers.com).

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Amazon P has already taken the lead. Its "Amazon fresh day delivery service" is only available to customers in Seattle, but will soon expand to California.

Hale said: "Amazon is already building infrastructure for the delivery of perishable commodities.

Groceries will become an important battleground in the electronic commerce competition.

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Anne Zboski P Anne, vice president of retail research at Kantar Research, agrees to a certain extent. But she cautioned that WAL-MART must ensure that the type of products sold on its website extends beyond the range of groceries.

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< p > "not to expand a product at a time, but to see who can win customers to buy the whole basket or shopping cart consumer goods," she said. "A big piece of consumer shopping basket is groceries, but there are other commodities, such as health and beauty care products."

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Azee Boschi added that WAL-MART has made significant progress in Internet Retailing in recent months, not only improving the user interface of its website, but also making it easier for shoppers who may not want to pay online for shopping.

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< p > "they have improved the visibility of their inventory. Customers can check the WAL-MART website to ensure that a commodity is available, and then they can go to the nearby WAL-MART store to buy it," she said. "The challenge now is to make people think of WAL-MART as a leading low price retailer online and offline."

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Hotovi Hottovy, research director of Morningstar consumer products industry, is not sure whether WAL-MART's growth in Internet retailing performance is not its infrastructure. But its huge and expanding retail store network, which now has 4000 stores in the United States and expanding in P, clearly plays an advantage. (R.J.)

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< p > Hotovi said: "WAL-MART has done a good job in the Internet retail business, but Amazon has done a good job in this regard.

They can weaken many commodity prices of competitors.

Because there are no physical stores and related costs, they can pfer the money saved in this area to consumers directly by lowering the price of goods.

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"P" Huo Tuwei added that if WAL-MART wants to win in the Internet giant competition, it must do more than infrastructure investment.

They must have good reasons to attract customers who are loyal to Amazon.

He said: "Amazon has perfectly solved the price, convenience, sales problems, and provides good customer service.

The perfect combination of these aspects is indeed powerful.

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