Wayfair: We’re not naïve about Amazon
June 14, 2017,
“Amazon wants to be the dominant [retailer] in every category of physical goods, make no mistake about that,” Wayfair co-chairman and co-ceo Niraj Shah told analysts here yesterday. “Home is on the list of the many things they want to do.”
“Are they going to make [winning home] a higher priority than fresh? A higher priority than Prime? A higher priority than Prime Video? A higher priority than India?” he asked.
Wayfair derives 45% of its revenue from exclusive and private brands that can’t be found on Amazon, he noted. And while Amazon specializes in delivering small packages, Wayfair is developing a furniture delivery system. Shah also argued that Wayfair has created a superior online environment for shopping home merchandise.
“We’re not naïve to Amazon being the primary competitor we have,” he said. “They’ll continue to get share in this category just because of how big they are.”
However, he expects that over time the online share of the home furnishings market is going to become concentrated on two sites. “I think us and Amazon are going to take that share.”
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