By Neil Saunders
Amazon’s launch of an array of new products is confirmation that the technology behemoth wants to make further inroads into the market for smart devices. The success of the existing Echo lineup has given Amazon the confidence to expand into this segment and, in so doing, play a more integral role in the lives of consumers.
Amazon will play a much more significant role in the electricals market, competing head on with many traditional manufacturers.
In many ways, this is a deliberate strategy to put Amazon at the heart of the home by automating and simplifying everyday tasks via the voice-controlled Alexa system. This expands the number of touchpoints and opportunities through which people can interact with Amazon, and it also allows Amazon to gather much more data on the behavior of consumers. Both are big wins for the company in terms of selling and marketing.
Some new launches mean that Amazon will play a much more significant role in the electricals market, competing head on with many traditional manufacturers. The AmazonBasics Microwave is an example of this. At first glance, being able to control a cooking device via voice control seems gimmicky; in reality, it solves the mild inconvenience of having to find various presets on badly designed keypads. It is yet another example of how Amazon thinks in a consumer-centric way.
This latest launch is just the start of both a bigger own-brand push from Amazon and a more serious foray into intelligent devices. Amazon is not the only player in this segment but due to its vast network of products and services and its ability to produce good technology at reasonable price points, its offering is one of the most compelling on the market.
Neil Saunders is managing director of research firm GlobalData Retail.