Thursday, July 25, 2013

Amazon's Murky Brand Position

Buying a $33,000 Rolex online seems like a bit of a stretch in general, but it's completely unbelievable when "online" means Sears.com.  The selling of a Rolex at "Sears" (it's really third-party retailers looking for a platform) is as out of character as the innuendo-laced items that Gawker discovered on the site last year.

But if Sears truly believes that the future of retailing looks something like Amazon, they should take a look at Amazon's latest earnings.  Although for Sears, who recently loss $2.4 billion in a four month span, taking only a small loss might be to die for- it's still not a profit.

Amazon gets a ton of credit, and rightfully so, for being innovators.  Yet, its earnings rarely reflect those significant investments in innovation.  Therefore, I cannot help but wonder if, similar to Sears, that its lack of brand positioning, or basically it's position as a retailer that sells everything under the sun, isn't being overlooked as the a principle cause of their consistently low earnings.

As always, thanks for reading and for sharing.  Please feel free to share your comments below.            

No comments: