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· Posted on
February 21, 2024

Amazon will open a department store filled with tech

We're talkin' an algorithm in the changing room that decides what you should try on next.

What's the key learning?

  • Amazon are planning on opening a department store that's teched up to the heavens to significantly improve the customer experience
  • In the business world, there’s an old rule that says if you’re going to build a new product…you need to make sure it’s at least 10 times better than your competitors
  • Now, Amazon's applying that theory to department stores.

Background: Amazon have been at the forefront of tech since their humble online bookstore beginnings. They've got cashier-less stores...and now, they're planning on opening a department store that's teched up to the heavens.

What happened: Shoppers will scan clothing items on mannequins to select the colour and size of the item they need...and then they'll take it to a fitting room with a touchscreen that lets customers request more items from staff.

What else: The touchscreen will even suggest items for shoppers to try on thanks to a trendy algorithm. This is Amazon's way of significantly improving the customer experience in retail.

So what's the key learning?

💡In the business world…there’s an old rule that says if you’re gonna build a new product…you need to make sure it’s at least 10 times better than your competitors.

💡Peter Thiel (investor in Facebook, LinkedIn, Spotify and Airbnb) reckons if you're not aiming to produce something 10x better than the closest substitute...then what's really the point?

💡Even as a startup, Amazon could offer at least 10 times more books than a traditional bookstore. And now, Amazon’s applying a similar theory to department stores. It wouldn't do anything in physical retail unless it could 10x the customer experience. Never having to leave the changeroom? That comes pretty close.

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