RetailAnalysis
21 April 2017
Amazon confirms Australian entry

Amazon confirms its plans for retailing in Australia, and Amazon Japan expands Prime Now service with food and cosmetics.

Gearing up for a big impact

Amazon is building up a sizeable team and looking for a site for its fulfilment centre. The retailer is working towards a big investment in the country.

Here's the full statement of Amazon's announcement:

“Amazon Web Services launched an Australian region in 2012, we launched a Kindle Store on Amazon.com.au in 2013, and we now have almost 1,000 employees in the country. The next step is to bring a retail offering to Australia, and we are making those plans now. We are excited to bring thousands of new jobs to Australia, millions of dollars in additional investment, and to empower small Australian businesses through Amazon Marketplace. We are optimistic that by focusing on the things we believe customers value most – low prices, vast selection, and fast delivery – over time we’ll earn the business of Australian customers.”

What does this mean for grocery?

Although Amazon has not made specific announcements in the grocery category, we expect the initial delivery will be focused on dry goods and non-perishables. Australian consumers have high expectations when it comes to the quality and freshness of their produce and seafood. It will take time for Amazon to build the infrastructure and a network of suppliers to meet the Australian shoppers' expectations. For now, the retailer is likely to pick low hanging fruit like dry cereal, canned food and paper products.

Expanding Prime Now in Japan to include food and cosmetics

Amazon Japan has announced that it is expanding its Prime Now delivery service, to include food from Mitsukoshi's flagship store in Tokyo, including deli fare and Japanese wagashi confections. Amazon's one-hour delivery service will also now include cosmetics and other daily supplies from Cocokara Fine Inc. and Matsumotokiyoshi Holdings Co.

Amazon Japan launched Prime Now in November 2015, and the service is currently available in parts of Tokyo, Kanagawa, Chiba, Osaka and Hyogo. The food delivery is only available for Prime members in eight Tokyo wards. Competition over same-day grocery delivery is increasing in Japan, with retailers such as Ito-Yokado, Aeon and Seiyu GK, all offering the service. 

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