Scott Galloway - How Amazon is Dismantling Retail

Scott Galloway speaks at L2’s Amazon Clinic about how Amazon is disrupting retail. Not only has Amazon changed consumer shopping habits, it has changed the relationship between shareholders and investors. Investors are no longer satisfied with steadily growing profits; instead they seek fast growth and strong vision - even at the expense of profitability. See video for insights on the future of brand, Alexa’s effect on households.

[@MariaPetrovaNYC]

Thanks for sharing with non-members!

[@jqyhlmnp]

Maria Petrova members?

[@JonShanny]

L2 is a membership based firm for b2b intelligence which costs upwards of $20,000 to be a "partner". The content on the KZbin channel is a marketing mechanism to build out those partnerships.

[@tehllama42]

@Jon Shanahan - Yup; and it works. The value of perspectives like L2's (and data driven knowledge excavation) in concert with other sources are why that headline cost figure makes sense to their customers. I think the side benefit of sharing stuff like this publicly is that any inferior sources of B2B intelligence start losing their price argument, as there is frankly more useful/relevant information to be had in most of Scott's whimsically self-deprecating rants than their is in some of their entire portfolios.

[@concretecountertop]

God why cant Scott be my professor he makes these topics so interesting

[@arnkriegbaum]

Well, yes. University education is dying a quick death when a youtube talking for a few minutes is more useful than a $20,000 - 60,000 a year formal education. Scott is just one of numerous excellent sources for personal and professional improvement. Someone (probably Amazon or youtube) will figure out how to certify people and then Universities will close and be sold off to the highest bidder.

[@TheHellogs4444]

One important gap online hasn't filled is something like Slack for education. The best part about school isn't learning content, it's learning from people. Even way back in 2007 I realised school isn't for learning. Knowledge already exists in encyclopaedias like Wikipedia. That + other people's blogs and resources are all we need to learn. But the main takeaway of school is the ability to collaborate. Collaboration is how things are done. Piazza, discourse-likes and similar just don't cut it.

[@scholarlyreader383]

Because most professors are washed out. Teaching was the last thing they wanted to do.

[@mohammadnehemiah7727]

sorry to be offtopic but does any of you know a way to get back into an Instagram account? I stupidly lost the account password. I appreciate any help you can give me!

[@adonisjosue7509]

@Mohammad Nehemiah Instablaster :)

[@towerclimber7277]

Who else wishes Scott was their economics professor?? W/o a doubt the best videos on KZbin.

[@Behzey2fly]

L2 should be a class in every high school

[@Bulvine420gaming]

Behzey never happen in public schools just babysitting there!

[@mefisto271]

Behzey ws. !

[@Asterius_101]

Behzey No, that's what college is for.

[@MAJ0ROCEL0T]

Honestly, being fascinated by something that so many find as boring as this is exciting to me and I love that this is fun to watch and learn

[@mohammedal-majed7881]

because it's intellectually stimulating

[@TheProdigyB3AST]

As someone who wants to go to school for Business while concentrating on Financial Administration, I find this channel super helpful as to providing credible information from somewhat reliable sources. Scott, you're the best.

[@KnownNever]

I almost cried in laughter on the "Boom" at the end lol

[@iykyk000]

I'm not sure what's better, the information you provided or one of the best presentations.

[@jackfarmboy]

One of the few KZbin Channels where I gain something every time I watch. Well done thank you.

[@deviladv]

I'm sometimes a critic of some of the little points of Scott's presentations. Not so here. This was a perfect presentation. Everything lines up. The story makes sense, all the points line up from beginning to end, and the punchline at the end was totally earned, in many different ways. Well done Scott.

[@zanecrowell8585]

I could listen to these for hours.

[@davidbranch6081]

Thanks Scott Galloway

[@303Lyons303]

A brilliant exemplary job Professor Galloway.

[@michaelarchibong5453]

I know more about the economy cause of this than CNN or my Econ teacher

[@PsycoticMango]

Michael Archibong we're pretty much at the point where you're investing time and money better to find educated and well spoken proffesionals on KZbin rather than going to college for conceptual degrees. All we need to do is find a practical way for employers to test your agregated education from KZbin. Degrees in more practical or specialized skills will still need universities more for the access to hands on resources like labs and equipment, but for a general education in economics, you're definitely better off than a lot of college students who may not have a great teacher, or may not have a genuine driven interest.

[@mrzack888]

learn about endogenous money theory and MMT. then you'll know about economics. the puzzles will then make sense.

[@sk00lb0y]

I'd recommend Soft currency economics by Warren Mosler. Or watch his lectures on the Euro, or any other topic.

[@monash4250]

You watch CNN... that's your first mistake ;)

[@jeromed.8433]

GamingTV CNN makes its motto "facts first" when the significant majority of its tv shows are opinion panels. So...yeah.

[@1nest370]

Scot you are amazing man

[@MsMrapplepie]

I don't invest in anything yet because I don't have that much money to play with right now, but I love watching this guy.

[@yovizx]

MsMrapplepie all you need is 900 dollars to start. I don't have much either but I start with one share. Rather have one then 0

You're pure gold, Scott! Business101 for Gen-Z-ers.

[@stevejohnson1685]

Scott - Thanks a bunch for ordering all that stuff through my Amazon Dot while I was watching your video! Now my search history includes laundry detergent and mascara, and Amazon has decided that I'm a 32 year old woman!

[@gfisch72]

I think the one area that amazon will not be able to break-down brands will be with food. Until kids grow-up with amazon brand ice-cream, people will ask alexa for ben & jerry's or haagen dazs ice cream and pay a premium for it. There was so much in these 20 minutes, amazon just starts to melt your brain the more you think about the company.

[@husleman]

Kept seeing your ads on many videos, and your ads were like, the only ones I was actually watching, then I decided to subscribe, and I gotta say, i'm very glad I did because your videos were very educational. As is this video here. Keep up the great work.

[@whatathon]

Fantastic presentation, thank you so much for sharing.

[@argosprtn4931]

Love the topics you cover every week. Keep it up

[@ranielyfire]

I would definitely listen to a scott galloway podcast

[@rdmerck]

Thank you, Scott. Your hard work develops my love of business more and more with every video.

[@kairavshah]

Thanks for the great insights. I second your discomfort with the "new way of doing business" and ignoring profitability at the cost of growth. Things could continue like this for a long time as long as the cost of capital stays low. Once that rises, things could become very different.

[@EricMiltsch]

Just amazing. And your kids are hilarious I'm sure. Another great video, thank you!

[@basicveganbitches]

if i had a choice to sit front row at a Scott Galloway lecture or Coachella... I think the answer is pretty obvious!!! 😘❤

[@basicveganbitches]

not a chance!

[@treestone95]

This channel teaches me so much keep on going guys.

[@funny-video-YouTube-channel]

Retail has to be automated, if it wants to survive.

[@Icynova]

This is the most awesome channel on KZbin for talks like this. Thanks for bringing value to my KZbin experience! If you had a Patreon, I'd donate.

[@swimant0]

Great talk Scott!

[@cheesy277]

I love everything you make. I need more content to consume.

[@khandelwalv]

Thanks, Scott for sharing this amazing story...really thought-provoking and gives a great perspective!

[@Jkp1321]

I used to buy virtually everything on Amazon before I got a car and had no job. A few months there after I continued this but as I became more aware of the retail market while working in the industry my attitude changed and I now try my best to shop at retail stores more not for brands but for the sake of generating revenue for my local economy and doing my part to keep businesses that employ more people up and running. That being said, more retail stores should price match Amazon and do better to incentivize consumers by offering better customer service wherever possible as well as things like master classes at DIY stores.

[@josegomez6549]

Thanks for the video

[@Xoediac]

Thank you Business Jesus

[@Heavywall70]

X03 Hilarious

[@ZanderChief]

If only everything on youtube was so informative, smart and entertaining! Though I am now scared of algorithms :) Seriously we had Google suggesting products and now we have Amazon taking it a step further and removing choice (or removing the need to choose).

[@aelkhalil]

Thanks Scott... Had to scream "Alexa NO" so many times... Amazon now thinks I'm going through some sort of life crisis...

[@solidjean25]

great video! keep on making more please!

[@TheLipsonvilleof06]

Gotta love that ending

[@iammacio]

"Alexa, please find me a job at Amazon". mind blown!

[@mitchcollins2947]

excellent and insightful thank you

[@sportsonline-emma7358]

The image of the soccer player shows a guy playing for Melbourne Victory, not the Central Coast Mariners. Just shows how Alexa can get things wrong, just as our predictions of consumer behaviour in the future may similarly be "way off". I recall teaching classes before the Dot Com Bust about how home delivered grocery vans were going to take over the world of the supermarket. The decision was "which company will win?" Of course, none did, from WebVan on, and the same may well be true of this stuff. Interesting, but that's it for now.

[@AanandBajaj]

Scott, what is your take on Costco? Does it have a differentiated strategy than other retailers?

[@Icynova]

Aanand Bajaj i would be interested in this as well.

[@joefunk76]

Aanand Bajaj Ditto. I'm a huge fan of Costco and would love for Scott's team to run the rounds on it.

[@arnkriegbaum]

Costco is fighting fire with fire. I ordered paper towels from them and they were there the next day: no packaging (the shipping sticker was stuck to the outer plastic) and no shipping charge. Is Costco as good as amazon? no. Still, they have a bunch of stores close to people so maybe they could start shipping from each store to speed the process.

[@apappas68]

It's a very interesting question. I think one must ask do they own or lease their real estate. You see Walmart own its real estate therefore it can lever holdings in the capital markets or have more store flexibility. The dirt below the store has significant value.

[@AccelerList]

The problem with this is....homeownership and thus safe delivery options are dwindling. Drones can get over an apartment gate but they can't safely put the item IN the users apartment. People wont want to have several packages waiting outside their door because of theft issues. We can't send all of our packages to work as it will be too distracting.

[@CalebOlshefsky]

lol love the ending hahaha

[@Koolyococo]

WOW amazing video!

[@andrewbettinger1018]

Thanks Scott for another informative piece here. However, Alexa ordered me baby wipes while listening (n the background) to this video. Luckily I was able to cancel when I got the order confirmation.

[@tehllama42]

Scott: Tell that joke in Tennessee anyway. For all our faults, us residents of flyover country are nothing if not gracious on agggregate... and that demographic overlap is non-trivial.

[@poodzmando]

Great ending!

[@conradcrawford1384]

Great video and the ending was great! Congrats on the Wikipedia page!

[@PrinceMelvinMLVPNC]

Great stuff Scott. I really don't give a shit about Economics. (I study Journalism and I'm trying to write novels tbh) But the way you relate information is fascinating on a marketing/communications level. So good that now I'm excited to get your updates on economic trends.

[@blakemaurer5714]

To push your assertion further about the review system. I would argue that amazon killed brands when they introduced their review system and integrated the rating into the main product view. That alone killed brand in the eyes of the intelligent consumer. The non brand loyal masses approaching new markets will look at the ratings. If nameless brand X has better reviews and better presumptive value through more stars on review by 200 or so other consumers, that nameless brand will get the purchase even over more household names. While I think Professor Galloway's prediction of a voice based future is credible, I think it could suffer the fate of the Microsoft Zune, too far too fast. The realistic future of amazon I believe to be more inline with the traditional in person retail experience, with an integrated GUI in stocking centers to display ratings and extended AR experience into the storefront. Wonderful video as always Scott and L2 team, and congratulations on your wikipedia page.

[@johnapple2922]

This growth strategy sounds like the Dotcom bubble is back

[@BenHansen]

I was thinking the same thing!

[@jakeg0mes]

john apple Maybe for some companies, but certainly not Amazon. Amazon could be extremely profitable over night if they wanted to be.

[@tehllama42]

I'd argue it's quite the opposite. The winner-take all nature of market share in these areas means that when Amazon feels inclined to hit their inflection point and change their operational paradigm from innovation >> profitability because they're hitting diminishing returns and oligopoly pushback - they'll be the outright most profitable entity on the planet by any meaningful metric... but waiting to make that change will enable them to capitalize on the every major breakthrough in logistics and transportation automation that is coming in the next two decades. I'd say THIS is what investors are buying into: when Amazon does decide to prioritize profitability (even secondarily, as a way to build operating capital for future reinvestment), markets will light up.

[@KungFuChess]

More then a bubble. this is a fundamental shift.

[@johnapple2922]

Yo do understand that the long term interest rate is artificially low because of the central banks around the world. Once the credit bubble burst all these companies will either fold or have to scale back operation. Amazon may survive the onslaught but shareholders will not see their money back for a long time. "It’s only when the tide goes out that you learn who has been swimming naked."- Warren Buffett

[@sagargadhia6423]

phenomenal !

[@andyfarr6981]

Real visionary!

[@AboveAllBeOriginal]

beautiful ending! wish i could see you in TN :( that would be a dream

[@RyanFinlay]

My Alexa got triggered during this video and is currently attempting to sell me mascara :)

[@Nandakumarweb]

Amazing quality content as usual. Audio editing could have been better.

[@dawsdep]

That ending!

[@jesseperez7942]

It's hard to find some stuff in stores these days.

[@Roseholm]

impressive. you really learn a lot from your work. Keep it up! :)

[@nuance9000]

I'd like him to comment on the state of amazon workers. Especially seeing how much each employee makes for the company. I wonder how a well-managed workers strike would play out--- not to mention how Amazon is defining the 21st century monopoly (although even if split up, the company would be the same only named differently)

[@heyuonthewall26]

This is incredibly fascinating. I wonder if Malcolm Gladwell agrees with your opinion.

[@buckduc]

Two thumbs up... Way up.

[@andresgonzalez1811]

@L2inc I can't seem to find any source links in the description. Any chance you could direct us to a reference list/page?

[@Tremendous-News]

Awesome Video Love Watching Your Channel Post More videos👏👋👍👌🙌👏👋👍✌👌

[@connorpeters560]

Just want to say I love everything you do.

[@dankdad56]

That was a pretty interesting video, first 20 minute video I've ever finished on KZbin! Maybe at your next soccer game you could get me some tickets?? This video makes me want to get into public speaking!

[@bluekornchips]

My Alexa was going nuts at the 16 minute mark, I don't need to order these things!

[@jaybeemer5166]

We've heard 'this time is different' and 'this is a new paradigm' before, both in the dotcom bubble and in the housing bubble. Everybody though both times were 'different', even though they weren't (in the end). I'm surprised that Scott didn't cover this obvious parallel. Consider this: What happens if the market decides that the p/e ratio of Amazon should be roughly equal to that of Apple or Google?

[@gneissrocks1845]

Boom

[@troygardner1610]

the amazon experience is like the land line of physical things, with drones able to deliver where you are ( when permitted) it will be the wireless jump to deliver things and both are pursuing realer and nearer time, 24/7. which makes sense in the scheme of things as life with lights is 24/7 e.g. you have a sick baby/self at 3 am saturday eve, need some meds asap, what store is open at that hour and worth driving ( particularly of you can't drive), an drone delivery/ courier as close to that is worth the delivery fee we expect of pizza, and might be additional uber venue stream

[@jeffward1106]

Brilliant

[@devensky00]

Are you an amazon salesman?

[@vshah1010]

I know, this talk seem like he is praising Amazon so much. It almost seems like a promotion for Amazon.

[@davidbranch6081]

Thanks for the video, I'm now going on the publish my books on Amazon after seeing this info. I will also now buy Amazon stocks. Thanks again, loved it.

[@yovizx]

David Branch I bought one share on amazon because I don't have much money but after this video I'm going to save more money to buy 2 more shares.

[@davidbranch6081]

+Yovani H. That's great Yovani H, before replying to you, I was trying to find the best approach to assist you. Saving is a great way to do it, but you're already on the right path. Scott Galloway is sure to be the guy to follow he keeps everyone up to speed on things. The very fact that you're here shows that you're wise, just watch him and you can't go wrong, and try to build ( Seed money). Seed money, came from some hobby you may have. It will bring in money to put towards the purchase of more stocks. Scott Galloway, here for my money is the guy that seem to have all the bases covered. The content that he provides is a great guide into Companies of today's world. To sum up things Yovani, it's like he giving us info that we can use as a CHEAT SHEET, we just have to read between the lines so to speak. Yovani H, I think you're going to do just fine, I wish you well my friend, thanks

[@davidbranch6081]

+Yovani H. That's great Yovani H, before replying to you, I was trying to find the best approach to assist you. Saving is a great way to do it, but you're already on the right path. Scott Galloway is sure to be the guy to follow he keeps everyone up to speed on things. The very fact that you're here shows that you're wise, just watch him and you can't go wrong, and try to build ( Seed money). Seed money, came from some hobby you may have. It will bring in money to put towards the purchase of more stocks. Scott Galloway, here for my money is the guy that seem to have all the bases covered. The content that he provides is a great guide into Companies of today's world. To sum up things Yovani, it's like he giving us info that we can use as a CHEAT SHEET, we just have to read between the lines so to speak. Yovani H, I think you're going to do just fine, I wish you well my friend, thanks

[@Supergecko8]

Just checked your Wikipedia page, it says :"Born 3 November 1994 (age 22)"

[@yourservices765]

hahahahah

[@Supergecko8]

that's the pick up artist face hahahhaha

[@DJumper360]

lol

[@bradys.7967]

Scott Galloway Please don't tell me you wrote that yourself😂

[@kh9242]

Thanks for the batteries lol my Echo loves your voice lol

[@dosmastrify]

The difference between Amazon and other retail is the reviews. everybody wants something that will do the job the rich people want the best thing for that job and if they can get it at a lower cost that's great too. reviews enable the wealthier people to know which one is junk and which one is the best for the job

[@Reg44T]

This is prime examples being stuck in your ways!

[@muliyachbes503]

17:17 eat battaries and DIE, Alexa!!!

[@Elementalism]

I found this video fascinating. What do you think effect will be when capital costs increase? Right now it seems like growth and valuation is being helped along by record low interest rates. If we return to 1980s style interest rates could this go boom?

[@donsudduth]

Great overview!! Scott, when you said you moved to 70% growth and lost money what and how did you invest in to reach a leadership position? (if you're willing to give away a bit of that secret)

[@TheStengah]

BOOM! A proud moment! Little scary as well. All of this is a little scary. Think I'll do my online shopping the old fashion way, with my eyes and hands. I barely buy anything online. XD

[@troygardner1610]

Also on the war on brands, it's also the producer (e.g. Farmer) who can win in ways not possible in the dinosaur like infrastructure of conventional retail, for example in Coffee, starbucks pays more on employee benefits than they do on coffee and in some cases these farmers are pretty close to clonial ages, with kids headed of to the big city instead of carrying on family multigenerational legacy. Smaller brands with less ego and better infrastructure, piggybacking on internetamazons can better support a sustainable ecosystem on the farmers side, e.g. I'd rather treat the family of farmers like employees it costs almost nothing in the grand scheme of things. This problem is true of most foods/spices we take for granted, e.g. Vanilla, cocao. Also from a quality perspective, all these distribution and supply and stock networks *can only remove quality from the product*. Think of fresh baked bread for an example, every day and foot inbetween a bakery and your mouth means it's that much staler, yucky and needing fancier costlier packaging and preservatives/flavoring to give the illusion of freshness. Eating mold is poison.

[@thejudgeholden]

What do you think about the future of the luxury brands? Do you think the strategy you described is going to erode brands like Gucci or to middle tier stuff like GAP? How can they even compete except maybe social media?

[@TINTUHD]

Ily Scott

[@KungFuChess]

If branding and advertising falls the rest of the system will eventually fall with it.

[@hydrapoison333]

can someone explain what 7:30 to 8:00 minutes means in laymens terms... was a bit lost.. insightful presentation though!

[@davidhunegnaw6426]

You owe me for baby wipes and batteries that just showed up at the house.

[@davidhunegnaw6426]

The future is voice-powered baby wipes.

[@nicholaslindblad5349]

Great ending.

[@jbbj7638]

Can someone please answer why that woman just decided to stand up and sit in the middle of the scene?

[@KGIV]

Scott, what do we do when Amazon is a near Monopoly in ever sector and they decide to jack prices? All the competition will die and we get left with an overpriced retailer that we're forced to buy from.

[@SantanuSongs]

Even the super markets did try to destroy the brands by promoting private labels. Didn't they?

[@williammuse4594]

Damnit Galloway! You need to stop with the Alexa videos - I have to keep stopping your video to keep her from ordering baby wipes and batteries! As always, you have an unbelievable ability to cut through the bullshit and read between the lines. As I watched this video I installed 4 new dog gates in my house - all bought off Amazon for 20% less than those found in big box stores - and better quality than the two I already have. I didn't purchase off a "brand," I went with the reviews - and glad I did. As always, thanks for sharing your insights with the world...

[@angeloc8712]

I still don't understand how does the grow vs profitability model work :/ how is a business that is literally not profitable attractive to investors. Can anybody explain it to me?

[@Vote4Drizzt]

I think the theory is that the business that is growing is arguably more secure than a business that is essentially setting at a given level of scale and skimming profits to give to whoever is entitled to them. Employees get paid, the business still does what it does at 0 profit, but the company is growing and securing its hold on the market ever more strongly. A company that's losing money can still be gaining victory and/or power, which can be easily traded for money at the leisure of such a company, whenever they decide they own a big enough percentage of *all the things*.

[@MyrnaandRita]

thereleast argon it's about funding innovation. When a market grows stagnant that opens up an opportunity for someone to come in, shake things up and make a grab for market share and money through the excitement of the new innovative product. If you can beat the new guy to the punch, then you have long term profitability in your pocket. Scott was talking about Jeff Besos (probably spelled wrong) calling people into his office and telling them to spend money on things that have long term potential. Its not that they are out of the profit game, it's that they are no longer treating their investments like a "get rich quick" scheme but more like a long term retirement plan.

[@angeloc8712]

Jamie M I guess what I'm having an issue with is the concept of long-term, meaning, if I'm a billionaire and invest on Amazon, am I expecting to see some money in 10 years, 20? Or actually never see profit and just own part of a big company?

[@MyrnaandRita]

thereleast argon that depends entirely in the investor. some investors invest for other reasons beyond straight monetary value. Prestige investors see more value in the "reputation value" of a company as more important than money in their pocket (I feel like snap is a good example of this). then there are investors that see higher value in being tied to innovation and ground breaking technology - they gain some sort of vicarious thrill from funding advancement. Profit investors, those who value a strictly monetary return, would not be the ones investing in this sort of industry.

[@angeloc8712]

Jamie M thank you Jamie! That was a really good explanation, I think it makes sense if you see it that way, then again we are yet to see what's the effect on the economy of this new approach

[@Heavywall70]

I feel guilty every time I use amazon It’s ultimately not good for us as a whole, basically like Walmart for the internet

[@Cowglow]

who's running audio.. please please compress that audio

[@BigHenFor]

Alexa will bring concierge service to the ordinary consumer.

[@sgtsayz8636]

I'm sold....

[@thomasgoodwill7222]

how can i export my products from Amazon.com to Maradexcove.com and ebay.com someone please help