The program, Amazon Dash, is a partnership with a handful of consumer brands like Bounty, Gillette and Tide — made by companies that offer “important things you always run low on,” such as paper towels and razor blades. Press a button on a small, pill-shaped device connected to Wi-Fi and receive a bottle of laundry detergent on your doorstep two days later.
I've been hesitant to post this because initially I thought it was a joke for a silly IoT application. The fact that it was published on April fools and some rumors that pointed out it was actually a prank, surrounded the announcement with a little bit of misbelief.
But as the days passed, it became clear that it was anything but a joke, and I've moved from the initial skepticism to a more bullish feeling to it.
- CPG is a curious space. The science behind branding strategy is amazing, almost sorcery. The buying decisions for these products are instinctive and if they are able to capture you as a customer, they might get a life-time revenue. Once you get used to buy brand X of deodorant you might never change, ever. So that's a small purchase, but the life-time value is huge.
- The placement of the device just next to the use experience makes it really convenient. You realize that you ran out of soap just in front of the washing machine. In that very moment, you already are down the funnel. You don't have it and you want to buy, now. How convenient is to have a button just there to order more.
So, this "silly IoT application" is just a life-time stream of revenue for a particular brand. If you were already not likely to change soap brands, now you are "technologically trapped".