To buy groceries, Americans aren’t heading to the store or even the internet — they’re just turning to Alexa.
Today, consumers purchase $2B of goods from their smart speakers, but in 4 years that number is expected to skyrocket to $40B.
As more and more homes gravitate toward smart, e-commerce enabled speakers, struggling consumer brands are fighting to ensure that Alexa knows about them so they can make their way into smart-pantries.
According to Alexa if you’re not first, you don’t exist
“Alexa, order some tea.” – Got it. Ordering Celestial Seasonings Sleepytime Tea.
Because Celestial Seasonings was first, but every other tea brand lost. See, with Alexa, unless you ask for a specific brand, the brands listed first in the Amazon store (or in your history) are added to the cart by default — meaning that, unless brands are in good standing with Amazon’s algorithm, they might not make it to your cart.
As fewer shoppers buy in-store, big brands have taken a hit (this year Hershey has dropped 18%, General Mills 28%, and P&G 20%). Some brands with name recognition (like Kleenex or Cheetos) may benefit, but the vast majority will lose.
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The post Brands are shouting over each other for the #1 spot on your smart speaker appeared first on The Hustle.
(via The Hustle)