Fox Business has a story about what appears to be Amazon's fastest-growing demographic - lower-income households. According to the story, "a new survey from Baird Capital found that Amazon is quickly growing Prime membership among lower-income (less than $50,000 per year) households, which is the key to its ongoing growth in the U.S."
Amazon's penetration among higher income households already is considerable - about 50 percent of US households already are Amazon Prime members, with 75 percent of households with income of more than $112,000 and 60 percent of households with income of more than $68,000 being Prime members. But by marketing extended Prime benefits, and even offering the ability to pay for membership by the month as opposed to an annual $99 payment, Amazon is making a play for all-important lower-income consumers.
This "could have a meaningful impact on Wal-Mart's foot traffic," the story says. "Wal-Mart historically appeals to lower-income households, and Amazon's incredible growth has been one of its biggest competitive threats over the years. Attracting more Prime subscribers from Wal-Mart's core shopping demographic could have a meaningful impact on how much lower-income households spend at Wal-Mart. Countless surveys show that Prime members spend significantly more than non-Prime members on Amazon."
Amazon's penetration among higher income households already is considerable - about 50 percent of US households already are Amazon Prime members, with 75 percent of households with income of more than $112,000 and 60 percent of households with income of more than $68,000 being Prime members. But by marketing extended Prime benefits, and even offering the ability to pay for membership by the month as opposed to an annual $99 payment, Amazon is making a play for all-important lower-income consumers.
This "could have a meaningful impact on Wal-Mart's foot traffic," the story says. "Wal-Mart historically appeals to lower-income households, and Amazon's incredible growth has been one of its biggest competitive threats over the years. Attracting more Prime subscribers from Wal-Mart's core shopping demographic could have a meaningful impact on how much lower-income households spend at Wal-Mart. Countless surveys show that Prime members spend significantly more than non-Prime members on Amazon."
- KC's View:
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The battle is joined. It has just begun. The impact will be felt by everyone.
