Amazon’s product recognition kicks Apple’s glass

amazon fire phone

 

What are we to make of the Amazon Fire Phone? Forget the design. It holds the killer marketing app — impulse-tapping product recognition.

The constant story of invention is when the Big New Idea comes along, at first nobody knows what to do with it. When Lord Kelvin heard of Guglielmo Marconi’s wireless telegraphy, a device to send signals magically through the “ether” via “waves,” he said, “wireless is all very well but I’d rather send a message by a boy on a pony.” Second, once the invention is established as useful, people invest wildly in the inventors. Third, and finally, the invention becomes a platform that morphs into a commodity that induces yawns.

Nobody today is rushing out to invest in radio towers.

Which brings us to modern mobile phones and tablets. Apple made us gaze in wonder at the first iPhone in 2007, when Robert Scoble emerged from the store with two (the limit then!) boxes in his hands. Now, shiny pretty screens are commodities, and soon will be ubiquitous. The new Amazon phone has a 13 megapixel camera and hi-def screen, but who cares? So does every other phone. Frankly, Amazon, your phone design is a yawn.

But. Oh, man. Amazon’s phone has a killer feature — product recognition. Wisely, the retailer giant is betting far beyond a  hardware design to a new, revolutionary system that connects you instantly to any product you capture via the phone’s camera or audio. The Amazon Fire phone uses a “Firefly” app that can recognize in a second more than 70 million products, or listen in on audio to pick out 240,000 movies or 160 television shows. Whatever is around you, if you like it, you can instantly bookmark it or buy it.

Miss, I like your dress. Snap. I just bought it for my wife.

Dude, great shoes! Snap. Now on order to my home.

That YouTube trailer looks like a great flick! Snap. Downloading to watch this weekend.

More than a simple dongle tying you to Amazon’s ginormous product ecosystem, this Fire phone is a new way to tap the Holy Grail of marketing, influencing consumers at the impulsive point of purchase. Amazon could seriously cannibalize other retailers — say, Walmart or Target or Macy’s or Nordstrom — by allowing you to quickly and easily price-shop by snapping a picture of any product on any shelf. Amazon, which has learned to thrive on razor-thin product margins, will undercut other retailers too keen on inflating price with rapid delivery of the same product.

Meanwhile, as Amazon makes purchasing easier than ever, it will collect an entire new ecosystem of data about you. It already knows your shopping habits and can infer from them deep data on your personal psychographics and behavior. But an Amazon phone will collect your location as you search for items, and can pinpoint how consumers are changing gears while at competitor locations. Imagine a heat-map of every consumer ordering shoes from inside every shoe store in the world, and then parsing which stores have the highest conversion rates or shopping-cart abandonments so Amazon marketers could adjust  pricing and product selection accordingly to compete more deeply with Dick’s Sporting Goods. As the data accumulates from consumer real-time, location-based, in-competitor-store transactions, Amazon will gain a data edge that no other retailer could match.

Or a final idea — we’ll give this one to you for free, Amazon marketers — is tying location to variable pricing. If Amazon were really clever/evil, it could adjust pricing from any phone inquiry to nudge you to buy from Amazon instead of the store you’re walking in, by slightly undercutting any store’s individual product price and using higher margins elsewhere to offset it. Say, you find shoes you like at Dick’s for $95, so Amazon could offer them to you as you check on your Fire phone for $90 instantly — and only you — while charging  other consumers who blindly click to the main Amazon.com website $97. If only 1 in 5 shoppers needs the price break, Amazon would still come out ahead.

It feels like a chess move that Garry Kasparov might make. Well, at least Amazon can’t get products to you in just a few hours. Something that crazy might require shipment by drones.

 

 

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