The Amazon Whole Foods Marriage Will Change the Retail Food Industry - Ganna Magazine Blog

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The Amazon Whole Foods Marriage Will Change the Retail Food Industry

The retail food industry is an industry that watches every penny. Retail food executives know competition is fierce. And they know price wars are the motivating factor in making a decent profit. Whole Foods, the organic specialty food chain, was able to forget the price wars. Whole Foods sells products at higher prices using an ingenious marketing plan. But along the way to fame and fortune, Whole Foods took advantage of their reputation by manipulating the weight of some prices and then charging higher prices for those products. Some of the company’s loyal organic, vegan customers went elsewhere to buy their tofu and organically safe products, and one of the companies that gave those consumers a new home was Amazon Go. 

Amazon saw an opportunity in Whole Foods that other companies couldn’t afford to cultivate. Jeff Bezos, the man who can do no wrong at Amazon, gave Whole Foods an offer they couldn’t refuse. And the jaws of other food companies hit the floor, and so did the jaws of thousands of Whole Food customers when the offer hit the news. 

Mergers in the food industry are not uncommon. The General Mills and Annie’s merger, and the General Mills and Hormel/Applegate merger, as well as the Kellogg and Kashi, are the food giants who quietly got together to increase market share and boost profits. And Danone and Stonyfield did the same thing. But the Amazon Whole Foodsmerger was an earthshaking event because it changes the dynamics of the retail food industry. The future of the food industry rests in the hands of technology and Amazon is the Zeus of technology. Competitors already know what’s in store for this massive titan of food. Amazon Go is the brainchild of modern food technology, and Whole Foods will be too. 

It’s no secret. Technology is turning the retail business into a better version of itself. A good example of turning an everyday product into a techno-superstar is the coffee mug that has its own temperature settings to keep coffee or tea hot while you drink it. A rotating dial at the bottom of a coffee mug sets the temperature of coffee to 120 to 150 degrees. This techno-baby comes from the inventor, Clay Alexander, the founder of Ember Inc. The mug retails for $149, but that’s a small price to pay for a mug that makes coffee or tea drinking a celebration of heat. 

The Alexander LED coffee mug is a good example of the changes consumers will see in the cup and dish market. But the mug is also an excellent example of what’s in store in other industries. Technology is the kid who won the spelling bee and was the star athlete at the same time. The world is smaller thanks to technology. And companies are smarter because they invest in technology. Consumers are blown away by the tech advancements. They can’t wait for the next big product that will make life easier and a little more expensive. Mergers and tech advancements are pricey, but consumers pay that price. 
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