Prime Day: Is this the year Amazon’s private brands break out?

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Prime Day: Is this the year Amazon’s private brands break out?

07/12/2019

Market researcher Nielsen is predicting this will be the year “that online private label ascends” during Amazon’s 2019 Prime Day, which begins at 12 a.m. Pacific on Monday, July 15, and continues through 12 p.m. Pacific on Tuesday, July 16. This year marks the Seattle-based company’s fifth-annual Prime Day.

In its Prime Day Predictions, Nielsen asks, “Will 2019 be prime time for branded products or private label?”

On Prime Day 2018, Nielsen said that consumer packaged goods (CPG) of private brands accounted for a mere 1% of sales for Amazon, representing a detour from the broader progression toward CPG private label, which accounts for 3% of total online dollar sales.

Nielsen’s summation: “Amazon’s concerted push over the last year may begin to tip the scales — making 2019 the year that online private label ascends.”

Overall, Justin Belgiano, senior vice president of ecommerce at Nielsen, said he expects grocery and health and beauty to dominate Prime Day this year, with omnichannel competition reaching new heights.

“Success will come to those who capitalize on these hugely popular categories that have previously underperformed on Prime Day — while ensuring that the best promotions also appear in stores, not just online,” Belgiano said.

Nielsen expects groceries to overtake gadgets on Prime Day this year.

“What started out as a moment to score deals on gadget-y goods has quickly expanded and transformed to become a blitz to buy goods of all types,” Nielsen stated. “In fact, last year, Amazon doubled its CPG sales for Prime Day compared to an average two-day span. CPG sales compared to Prime Day 2017 saw a more than 20% increase.”

Grocery was the second highest category within CPG sales last year behind health & beauty, accounting for 17% of total Amazon CPG sales on Prime Day, according to Nielsen. “Consumers continue to warm up to the idea of grocery shopping online — more than ever before, consumers will have a stronger appetite this year to take advantage of grocery deals.”

Nielsen also predicts that beauty and baby care basics will dominate Prime Day.

“In 2018, health and beauty topped CPG sales, with consumers sopping up deals on beauty care basics,” Nielsen said. “Within baby care in 2018, disposable diapers accounted for 5.5% of total Prime Day 2018 sales, seeing a 21% surge compared to the rest of the year.”

Interestingly, Prime Day is no longer just about Amazon.

“This will be the most competitive Prime Day ever — and other retailers will capture Prime Day’s halo effect both online and in store,” according to Nielsen.

 

 

 

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