Guru Hariharan, CommerceIQ CEO, and Bloomberg Intelligence's Jitendra Waral discuss Amazon's first-quarter results with Bloomberg's Brad Stone on "Bloomberg Technology."
In this webinar snapshot, Bayer's VP of e-commerce, Gabe Mattingly discusses how Bayer generates more than $3B in top-line in the US, and mostly holds either a #1 or #2 position in a number of different categories. At Amazon, Bayer operates with more than 400 1P ASINs, which creates a lot of complexity. That complexity is amplified by their "internal wiring" which has serviced their brick-and-mortar business for years, and isn't necessarily oriented towards e-commerce.
In this webinar, Bayer's VP of e-commerce, Gabe Mattingly discusses how Bayer efficiently runs their Amazon e-commerce business, and the role CommerceIQ plays in that success. Gabe is responsible for all aspects of e-commerce, and has held leadership positions at Amazon, Kimberly-Clark, Target and agencies. Joining Gabe is our CEO here at CommerceIQ, Guru Hariharan. Formerly a leader at Amazon, Guru worked in the inceptive stages of Amazon's supply chain and merchandising organizations.
The host just dropped the casserole and the guests are arguing politics. This dinner party is not going well! That's kind of how we felt compiling the quadrant for this Dining & Entertaining category on Amazon. With no High IQ Brands and an unprecedented concentration of brands in the Laggards quadrant, there are few bright spots here. However, we do like what we're seeing from Anchor Hocking (Oneida) and Amazon.
The vitamins category on Amazon has a unique distribution of brands across every quadrant, with a tight cluster of six brands demonstrating strong operational execution. In fact, this is the first category we've analyzed that has multiple brands in every quadrant. Having said that, we still see a wide disparity both in terms of how well brands are marketing themselves and fulfilling that demand.
The Protein category on Amazon is pumped up! With three brands in the High IQ Brand quadrant, ten brands in the Niche Performers quadrant, and a single brand in each of the Large Leakers and Laggards quadrants, this category is really pulling its weight.
The brands in the Medications and Treatments category are spread evenly across the four quadrants. But that also means half are in enviable positions, while the other half are struggling on the marketing and/or operations side.
Interesting, I never realized how many small kitchen appliance makers have black logos. Well, whatever they're doing, it's working for these brands. This is a very healthy amazon category. As is typical of many hardline categories, share of voice is pretty evenly distributed with no brand holding more than 9% share of voice. And the overall shape of the quadrant is healthy. That means the Large Leakers quadrant is empty and there's a good concentration of brands in the High IQ and Niche Performers quadrants.
In Amazon's paper and plastic category the brands with the greatest share of voice are also those leaking the most revenue, primarily due to availability issues. Further, the performance of the top four brands (Kimberly-Clark, P&G, Georgia-Pacific, and SC Johnson) are shockingly similar across the board in marketing performance and supply chain execution. This makes for an interesting "arc" within the quadrant that leaves the High IQ Brands quadrant empty. Typically, there's an arc across the quadrants going the opposite way, leaving the Large Leakers quadrant empty.
The face skin care category on Amazon is showing a breakout by Johnson & Johnson and a close challenge from L'Oreal. Below those two is a block of nine brands with similar marketing results, but a wide range of scores on supply chain effectiveness. In fact, revenue leakage spans from less than 1% all the way up to 34%. A big variance, but looking across all categories it's actually not all that unusual. The delta on share of voice (how often brands appear in Amazon search results) is not quite as dramatic, with the top brand at 16% and the block of nine niche players pegged between 1% and 2%. We can best categorize this as a moderately concentrated amazon category. The only blemish on this quadrant is the fact no brands made it into the High Brand quadrant. This is the first category where we've seen this dynamic.