WEBVTT - Bloomberg's Goyal, Clavis's Chaudhury: Amazon Prime Day (Audio)

0:00:03.160 --> 0:00:06.560
<v Speaker 1>Global business news twenty four hours a day. It's Bloomberg

0:00:06.600 --> 0:00:09.680
<v Speaker 1>dot Com, the radio plus mobile LAFT and on your radio.

0:00:09.960 --> 0:00:14.120
<v Speaker 1>This is a Bloomberg business flag from Bloomberg World Handquarters.

0:00:14.240 --> 0:00:17.560
<v Speaker 1>I'm Charlie Pellock down Jones. Industrial average joined the SMP

0:00:17.680 --> 0:00:21.880
<v Speaker 1>five hundred index at our record closed today, equities advancing

0:00:21.920 --> 0:00:26.320
<v Speaker 1>for a third day, crude rallied, and ALCO's results bolsted

0:00:26.320 --> 0:00:29.840
<v Speaker 1>optimism about corporate health amid the start of the earning

0:00:29.840 --> 0:00:32.720
<v Speaker 1>seasonal cohen out a two month high, up today by

0:00:32.840 --> 0:00:36.479
<v Speaker 1>five point four percent to ten sixty nine. SMP five

0:00:36.560 --> 0:00:40.000
<v Speaker 1>hundred index up fourteen one fifty two, up seven tenths

0:00:40.080 --> 0:00:43.640
<v Speaker 1>up one percent down, Industrials up one hundred twenty points

0:00:43.640 --> 0:00:46.839
<v Speaker 1>to eighteen thousand, three hundred forty seven. That was a

0:00:46.880 --> 0:00:49.040
<v Speaker 1>gain of seven tenths of one percent, and has stack

0:00:49.120 --> 0:00:51.720
<v Speaker 1>up thirty four, also a gain of seven tenths up

0:00:51.760 --> 0:00:54.840
<v Speaker 1>one percent. The tenure down twenty two thirty seconds, the

0:00:54.920 --> 0:00:59.000
<v Speaker 1>yield one point five percent, gold down twenty two twenty,

0:00:59.320 --> 0:01:02.040
<v Speaker 1>the ounce thirteen thirty four, a drop there of one

0:01:02.080 --> 0:01:05.000
<v Speaker 1>point six percent, and crude oil up two oh three

0:01:05.000 --> 0:01:09.120
<v Speaker 1>of barrel seventy nine for West Texas Enemedia crew. That's

0:01:09.120 --> 0:01:12.400
<v Speaker 1>a gain of four point six percent. I'm Charlie Pellett

0:01:12.560 --> 0:01:18.000
<v Speaker 1>and that's a Bloomberg business flash. You're listening to taking

0:01:18.000 --> 0:01:24.360
<v Speaker 1>Stock with Kathleen on Bluebird Radio. One hundred thousand deals,

0:01:24.560 --> 0:01:30.280
<v Speaker 1>ten countries. Yes, Amazon Prime at Sale begins today. The

0:01:30.440 --> 0:01:34.360
<v Speaker 1>company is hoping to best their performance of last year,

0:01:34.360 --> 0:01:39.280
<v Speaker 1>in which they sold four hundred million dollars worth of merchandise.

0:01:39.640 --> 0:01:43.399
<v Speaker 1>Here to tell us more about Amazon and Prime Day

0:01:43.840 --> 0:01:49.880
<v Speaker 1>is Punamgyal, expert and analyst for retail for Bloomberg Intelligence,

0:01:50.600 --> 0:01:53.520
<v Speaker 1>put on tell us about this day. How important is

0:01:53.560 --> 0:01:57.320
<v Speaker 1>it for Amazon? It's actually very important because it's their

0:01:57.400 --> 0:02:00.680
<v Speaker 1>way to get more Prime members to join, and once

0:02:00.720 --> 0:02:03.480
<v Speaker 1>they joined, it probably become a Prime member for life.

0:02:03.480 --> 0:02:06.400
<v Speaker 1>So it's to repeat purchase that they're really targeting more

0:02:06.440 --> 0:02:09.320
<v Speaker 1>than just the sale, So they're looking for more people

0:02:09.360 --> 0:02:11.840
<v Speaker 1>to sign up to be Prime customers. That makes sense.

0:02:12.000 --> 0:02:14.919
<v Speaker 1>But in terms of the sales, I noted, for example,

0:02:14.960 --> 0:02:19.320
<v Speaker 1>that consumer electronics seems to dominate Prime Day spotlight deals.

0:02:19.480 --> 0:02:22.720
<v Speaker 1>Is that accurate um? That's typically accurate because that is

0:02:22.760 --> 0:02:26.560
<v Speaker 1>what dominates Amazon deals even on Black Friday or the

0:02:26.560 --> 0:02:29.080
<v Speaker 1>holiday season. So that is true. But in terms of

0:02:29.080 --> 0:02:31.399
<v Speaker 1>the deal so far, the items that we've been pricing,

0:02:31.720 --> 0:02:35.720
<v Speaker 1>it's really ranged from a discount of about thirty on average.

0:02:35.720 --> 0:02:37.400
<v Speaker 1>And this is just across you know, like thirty to

0:02:37.440 --> 0:02:41.000
<v Speaker 1>fifty items that we've randomly selected. There are discounts as

0:02:41.040 --> 0:02:44.639
<v Speaker 1>highest seventy percent, fifty percent. Especially video games there's a

0:02:44.680 --> 0:02:48.880
<v Speaker 1>big discount there. Um, big screen TVs we see a discount.

0:02:48.919 --> 0:02:51.560
<v Speaker 1>But you know, we're seeing a lot of price matching. Um,

0:02:51.600 --> 0:02:55.280
<v Speaker 1>it's interesting when you look at Amazon versus Walmart. Walmart

0:02:55.360 --> 0:02:58.360
<v Speaker 1>has knew this year a section called Dare to Compare

0:02:58.880 --> 0:03:03.600
<v Speaker 1>which prices is um the item across Amazon target best

0:03:03.639 --> 0:03:07.400
<v Speaker 1>buy to themselves up front for you, and it matches

0:03:07.440 --> 0:03:11.080
<v Speaker 1>that almost every thirty minutes or so. Well, point, I

0:03:11.120 --> 0:03:14.520
<v Speaker 1>understand that Walmart is offering free shipping on all items

0:03:14.520 --> 0:03:17.480
<v Speaker 1>along with what they call rollback deals. They've been offering

0:03:17.520 --> 0:03:21.239
<v Speaker 1>a free thirty day trial for their shipping Pass as well. Yeah,

0:03:21.280 --> 0:03:24.560
<v Speaker 1>that's absolutely correct. You know, Um, Amazon has been taking

0:03:24.600 --> 0:03:27.320
<v Speaker 1>share of e commerce and Walmart needs to step up

0:03:27.360 --> 0:03:30.120
<v Speaker 1>their game. So this is their first attempt this year

0:03:30.200 --> 0:03:32.640
<v Speaker 1>with Shipping Pass, which is a program similar to Prime

0:03:32.680 --> 0:03:35.640
<v Speaker 1>at half the price. It aims to also ship product

0:03:35.680 --> 0:03:37.840
<v Speaker 1>in two days or less for forty nine dollars a year.

0:03:37.880 --> 0:03:39.680
<v Speaker 1>They're giving it for free, as you said, for dirty

0:03:39.720 --> 0:03:43.640
<v Speaker 1>days and this week only they have free shipping on everything. Well,

0:03:43.680 --> 0:03:46.680
<v Speaker 1>I want to bring in a Suprea Chowdery, the chief

0:03:46.760 --> 0:03:51.160
<v Speaker 1>marketing officer of Clavis Insight, joining us from Boston home

0:03:51.200 --> 0:03:55.600
<v Speaker 1>to Bloomberg and wondering if maybe you can give us

0:03:55.640 --> 0:03:59.240
<v Speaker 1>a little insight, Supria, on some of the specific deals

0:03:59.520 --> 0:04:01.800
<v Speaker 1>and whether they are really any better than the deals

0:04:01.800 --> 0:04:06.040
<v Speaker 1>that are offered by Amazon on a regular basis. Sure, um,

0:04:07.120 --> 0:04:12.840
<v Speaker 1>in terms of actual promotional discounts, they probably average similar

0:04:12.880 --> 0:04:16.440
<v Speaker 1>to the deals that you see UM from Amazon on

0:04:16.560 --> 0:04:20.000
<v Speaker 1>daily basis. What is really big here is the fact

0:04:20.040 --> 0:04:23.200
<v Speaker 1>that the number of deals UM that Amazon is offering

0:04:23.440 --> 0:04:27.039
<v Speaker 1>during this period is much larger much so. For example,

0:04:27.160 --> 0:04:31.000
<v Speaker 1>what would be a larger component, I mean, is it luxury,

0:04:31.400 --> 0:04:34.880
<v Speaker 1>It's a It's a larger number of of deals at

0:04:34.920 --> 0:04:38.039
<v Speaker 1>any given time. And in terms of the types of

0:04:38.120 --> 0:04:41.360
<v Speaker 1>deals that they are spotlighting, the spotlight deals today were

0:04:41.920 --> 0:04:45.240
<v Speaker 1>really focused a lot on consumer electronics, so they had

0:04:45.640 --> 0:04:49.520
<v Speaker 1>flagship flagship deals on Samsung Um Curve TVs and the

0:04:49.560 --> 0:04:54.160
<v Speaker 1>iBOT Your Room Barber two featured deals that were really

0:04:54.200 --> 0:04:58.320
<v Speaker 1>hot and sold out by by lunchtime. But it is

0:04:58.440 --> 0:05:02.920
<v Speaker 1>very focused on the electronics and laptops and also Amazon's

0:05:02.960 --> 0:05:06.760
<v Speaker 1>own fire TVs and and tablets and other things. I

0:05:06.800 --> 0:05:09.440
<v Speaker 1>wanted to ask you about that, for example, the Amazon

0:05:09.520 --> 0:05:13.000
<v Speaker 1>devices that you just mentioned plus the Alexa, the voice

0:05:13.320 --> 0:05:17.279
<v Speaker 1>activated device from Amazon. Is that also part of the

0:05:17.320 --> 0:05:19.839
<v Speaker 1>strategy to get people to just be hooked into the

0:05:19.880 --> 0:05:24.919
<v Speaker 1>Amazon ecosystem. I would think it is. Um, they have

0:05:25.240 --> 0:05:30.560
<v Speaker 1>a very big percentage of the deals on their own products. Uh,

0:05:30.600 --> 0:05:33.440
<v Speaker 1>and you know products those products definitely hook you right

0:05:33.480 --> 0:05:37.240
<v Speaker 1>back into the Amazon Amazon ecosystem. So uh, you know,

0:05:37.320 --> 0:05:40.640
<v Speaker 1>you can sort of see the deepening of of of

0:05:40.760 --> 0:05:45.640
<v Speaker 1>the Prime memberships, expansion of Prime and trying to convert

0:05:45.680 --> 0:05:48.839
<v Speaker 1>people that are not on Prime onto Prime. Um with

0:05:49.000 --> 0:05:53.120
<v Speaker 1>this with this Prime Day, Prime Day promotion, this this

0:05:53.320 --> 0:05:56.359
<v Speaker 1>big shopping holiday that they're creating, and then you know,

0:05:56.400 --> 0:06:00.680
<v Speaker 1>getting more and more people into Amazon products that tie

0:06:00.720 --> 0:06:07.560
<v Speaker 1>you to that ecosystem. As as mentioned, there are other

0:06:07.600 --> 0:06:10.960
<v Speaker 1>retailers that are a sense piggybacking off of this Prime

0:06:11.080 --> 0:06:14.480
<v Speaker 1>Day as sale. Is that something that will just continue

0:06:14.520 --> 0:06:16.919
<v Speaker 1>and give us some examples of the companies that are

0:06:16.920 --> 0:06:20.440
<v Speaker 1>looking to capitalize on this. Sure Walmart first comes to mind.

0:06:20.440 --> 0:06:22.680
<v Speaker 1>They did it last year two they are picking back

0:06:22.720 --> 0:06:24.400
<v Speaker 1>on it, but not just for the day, for the months,

0:06:24.480 --> 0:06:28.760
<v Speaker 1>they're adding rollbacks. So that's one retailer that's fighting for

0:06:29.000 --> 0:06:31.960
<v Speaker 1>their share because as customers convert to prime, that's one

0:06:32.040 --> 0:06:35.320
<v Speaker 1>last customer for for Walmart longer term. You also have

0:06:35.400 --> 0:06:38.800
<v Speaker 1>what's interesting on the apparel side, Macy's. You know, they

0:06:38.800 --> 0:06:42.040
<v Speaker 1>said black Fridays back in July, which isn't a category

0:06:42.080 --> 0:06:44.560
<v Speaker 1>that you would traditionally think Amazon competes in, but it

0:06:44.720 --> 0:06:47.839
<v Speaker 1>is a category that they're definitely making a bigger plan

0:06:48.040 --> 0:06:50.920
<v Speaker 1>for apparel. So on their home page today for Amazon

0:06:51.240 --> 0:06:53.960
<v Speaker 1>you see apparel thirty person off, So they are making

0:06:54.000 --> 0:06:56.600
<v Speaker 1>a push to be bigger in apparel, and Macy's a

0:06:56.720 --> 0:06:59.880
<v Speaker 1>fighting back. Lord and Taylor is fighting back with extended

0:07:00.040 --> 0:07:03.359
<v Speaker 1>promotions on their website, including free shipping. Yes, I noted

0:07:03.400 --> 0:07:06.080
<v Speaker 1>that Lord and Taylor offering a triple savings event. They

0:07:06.080 --> 0:07:09.680
<v Speaker 1>say off site wide free shipping on every order and

0:07:09.800 --> 0:07:12.480
<v Speaker 1>twenty dollars off if you spend a hundred and seventy

0:07:12.480 --> 0:07:17.160
<v Speaker 1>five dollars, so it discounts all across. That's right, all right,

0:07:17.200 --> 0:07:20.480
<v Speaker 1>thank you very much. Put Amcoyal, a retail analyst and

0:07:20.640 --> 0:07:25.000
<v Speaker 1>expert for Bloomberg Intelligence. Our thanks also to Cuprea Chowdery,

0:07:25.200 --> 0:07:29.760
<v Speaker 1>chief marketing officer for Clavis Insight, joining us from Boston,

0:07:29.800 --> 0:07:34.600
<v Speaker 1>of course, home to Bloomberg. Twelve hundred Amazon shares faring well.

0:07:34.680 --> 0:07:37.120
<v Speaker 1>Maybe they're on sale today, down about three quarters of

0:07:37.200 --> 0:07:39.840
<v Speaker 1>a percent, but they're up ten percent so far this year.

0:07:40.240 --> 0:07:46.360
<v Speaker 1>You're listening to taking stock and this is Bloomberg coming up.

0:07:46.400 --> 0:07:49.080
<v Speaker 1>Bloomberg Laws brought you by the accountants and advisors at

0:07:49.080 --> 0:07:51.520
<v Speaker 1>Eisner Amper. Cyber security is on the mind of every

0:07:51.520 --> 0:07:54.920
<v Speaker 1>business leader. Managing cyber risk should be to get started

0:07:54.920 --> 0:07:57.680
<v Speaker 1>with a cyber risk assessment. Learn more. Eisen Ramper dot

0:07:57.680 --> 0:07:58.880
<v Speaker 1>com slash cyber risk