Contact Your Financial Adviser Money Making MC
24
April 2017
Australian
retailers are preparing for the invasion of US giant Amazon, and have vowed to
take the fight up to the online-based store when it comes to local shores.
Amazon
confirmed its rapid Australian expansion by announcing its search for a site to
build its "fulfilment centre" - a large warehouse for storing and
shipping goods purchased online, Xinhua news agency reported on Monday. The Total Investment & Insurance Solutions
However
local retailers, mostly from electronics and homewares division, including
Harvey Norman's founder Gerry Harvey, said he would make it hard for Amazon to
succeed Down Under. The Total Investment
& Insurance Solutions
Harvey
Norman sells electronics, furniture and bedding - all markets in which Amazon
hopes to hold a stake. The Total Investment
& Insurance Solutions
But
Harvey has said that it would happily go toe-to-toe with the American behemoth
to maintain its share in the Australian market. The Total Investment & Insurance Solutions
"In
America and other parts of the world, they (Amazon) have just demolished other
retailers, no question about that, and they send a lot of retailers broke,"
Harvey told News Corp on Monday.
"There
is no question they have one ambition, and like Attila the Hun, or Alexander
the Great, they just want to demolish everything in front of them and then at
the end of day claim to be victorious and make their own rules." The Total Investment & Insurance Solutions
"So
this is a company that is extraordinary by any measure and defies every rule
that has ever been written about a business." The Total Investment & Insurance Solutions
Some
analysts have said that Amazon could take in as much as $three billion in sales
in its first five years in Australia (around one per cent of the total $225
billion market).
However,
Harvey has refuted those claims, saying that local retailers would be putting
up "one hell of a fight" when Amazon launches its main retail
services in Australia.
"We
will be out there fighting them like no American retailer has ever fought
them," he said. "Any price that they put we will beat or equal."
Meanwhile,
Harvey's thoughts were backed up by those of former CEO of supermarket chain
Woolworths, Roger Corbett, who said Amazon would struggle to replicate its
lower wages and claims of lightning fast delivery to rural parts when it opens
in Australia.
"Amazon
will have an impact on the market place, but they are coming into an already
very competitive market," he told News Corp.The Total Investment & Insurance Solutions
No comments:
Post a Comment