Scott Galloway is a marketing professor at the NYU Stern School of Business and the founder of business intelligence firm L2.
Galloway appears on this week’s episode of The Bottom Line with Henry Blodget and explains how Amazon could eliminate the existence of brands with voice technology. The following is a transcript of the video:
So I think the biggest thing in technology in 2017 is voice. I think Amazon has effectively conspired with voice and technology and half a billion consumers to kill brands.
When you go into a store, you see the packaging, you see the endcaps, you might see pricing go up and down. All of these things that big brands ranging from Unilever and Procter & Gamble to Kraft and Heinz have spent billions of dollars and generations building.
When you begin ordering groceries and things and CPG products via voice on Alexa, all of those things go away. And if you look at search terms on Google and voice commands on Amazon’s Alexa, the percentage of time that brand prefixes are used in a request is declining. So effectively, I think Amazon has declared war — with the backing of 500 million consumers and a lot of cheap capital — on brands. And we will, using our algorithm, find you as good a product for a lesser price. Amazon will figure out in a nanosecond the best deal and most likely trade you into the highest-margin product for them which will be Amazon toothpaste.