“Are the products commodities or is there a high level of product uniqueness (multiple brands, variations, etc)? Is there a bespoke design element involved? We argue that commodity products are more susceptible to Amazon disruption…while unique and bespoke items are less likely to be purchased through Amazon’s marketplace,” states the report.
The report added that industries with a high degree of customization include formal apparel, intimates, and luxury goods.
In the past few months, Amazon has made headlines with its acquisition of Whole Foods in June and its partnership with Sears in July to sell Kenmore appliances online, driving fears that e-commerce giant will continue to undermine additional sectors.
Groceries companies Kroger and Costco took a huge hit after the Whole Foods purchase, down 15 and 10 percent respectively over the last three months. Retailers Macy’s and Gap are down 21 and 11 percent respectively over the same period.
–With reporting by Michael Bloom