In anticipation of the inaugural Intelligence Report®: Amazon, L2 Founder and CEO Scott Galloway shared some insights on how digital continues to reshape our economy, and made some predictions about how the retail giant might reach the trillion-dollar mark before other giant Apple.
Amazon’s investment in infrastructure is nearly unprecedented, and most recently they’ve been building warehouses just outside major urban centers. Galloway predicts that in three to four years, Amazon will be able to deliver to a majority of households most anything they might need on a daily basis – within four hours.
Amazon has also continued to invest in its grocery delivery service AmazonFresh, in what Galloway sees as a move to further build a direct pipeline to households’ daily and weekly needs.
Apple, however, might reach the trillion-dollar mark first if it is able to transition its image from a tech hardware company to a prestige product. Consumers experience prestige products brand-first, which leads to irrational margins and a need to refresh the actual product only every three to four years.
Galloway predicts that an investment in wearables might be the means to make this shift, which Apple’s hiring of YSL’s CEO Paul Deneve and Burberry’s CEO Angela Ahrendts supports.
For more, check out L2’s recent Intelligence Report®:Wearables and stay tuned for the Intelligence Report®: Amazon.