Amazon has opened a new beauty and personal care store in Italy.
Speaker AAccording to chain Storage, located in Milan's busy city center, the new Amazon Parapharmaca.
Speaker AI don't even know Parapharma, Parapharmacia and Parapharma.
Speaker AParapharmacia.
Speaker AOkay, all right.
Speaker AParapharmacia and Beauty Store provides a curated selection of beauty and personal care products and is part of a broader effort by Amazon to expand its online beauty and personal care product offerings across across Europe.
Speaker AThe store features two distinct areas.
Speaker AThe first, the central hub of the space or the quote main gallery, end quote, showcases a selection of beauty, personal care and dermatologically recommended brand name products.
Speaker BWow, way to go with dermatologically.
Speaker BYou nailed it.
Speaker AI mean, some words I can pronounce clearly.
Speaker AI must have to go to Milan to work on my Italian.
Speaker AChris, I think that's just the pharmacy.
Speaker AIt is.
Speaker AYeah.
Speaker AYou know, I know, I know.
Speaker AI mean, even my Italian heritage is not helping me here.
Speaker AOkay, then we have the Quote Place and Learn and Quote stations which feature interactive digital displays that enable customers to learn more about products by playing educational videos about select items when they're placed on a designated tray.
Speaker AThe second area, the Derma bar, is an experiential area that provides customers complimentary digital skin analysis using technology and product recommendations from beauty experts.
Speaker AUsing digital tools, customers can obtain a comprehensive report on their skin type and condition by having their skin analyzed at 1of3Digital Skin Analysis stations.
Speaker ABeauty experts then provide product recommendations based on the results.
Speaker ADavid, I know you are very, very stringent about your skin care routine, so I'm going to go to you first.
Speaker AI want to know, David, what's your hot take on Amazon's new beauty store in Italy?
Speaker ADoes the world need it?
Speaker CYes, I actually love this one.
Speaker BYou do?
Speaker AOh, wow.
Speaker CFor a couple.
Speaker BWhy?
Speaker COne beauty space is just a great space and I think will continue to be an interesting space going forward, but I think it's in line with Amazon's premiumization play that they're doing right.
Speaker CSo as they no longer are necessarily the cheapest in anything they do.
Speaker CI mean, you know, kind of that's well proven out or you know, across the website, across everything else and they go category by category and you know, kind of attract, try to attack categories.
Speaker CThis is a perfect premium play in the category.
Speaker CYou don't want to be in the race to the bottom and you know, open a cheap store full of Maybelline and Revlon and then you're just competing with convenience.
Speaker CI think this is the way to go.
Speaker CThey're essentially attacking Sephora.
Speaker CAnd you know, it's potentially a better version of Ulta because you have the self help, not only the self help, you have experts in the store.
Speaker CYou, you know, you potentially have even higher trained people and higher level pharmacists, et cetera.
Speaker CSo great category, great strategy.
Speaker CI think this one's a home run.
Speaker ASo wow, is, is the Milan play then you think?
Speaker ABecause they're going after luxury or why do you think they chose Milan as this location, as the first location?
Speaker CWell, I think the obvious reason they chose is because we were supposed to do this podcast as a store visit.
Speaker AClearly I can't even see the word of the store.
Speaker CBut no, I think that's the logic.
Speaker CI mean the two choices, right, was either Paris.
Speaker CI wouldn't be surprised if the next one's in Paris.
Speaker AReally?
Speaker CSo staying international kind of city centers.
Speaker BTrying to go up market, huh?
Speaker AOkay, interesting.
Speaker ALisa, do you agree?
Speaker DYou know, I, my reaction was I think it is a great, similar to David's.
Speaker DIt's a great play on luxury.
Speaker DIt's a great play on a very hot trend that spans generations.
Speaker DI think it's important we know from 10 year olds to, you know, 70 year olds, everyone wants to look and feel good and are really spending a lot of time thinking about skin care and how they look and taking care from a health perspective as well.
Speaker DAnd I think the interactive part is amazing and I do think it is a play on luxury.
Speaker DBut I, the question I thought is, do we need it?
Speaker DI don't think we need it.
Speaker DThat's the only difference.
Speaker DI think it's an interesting play for them.
Speaker DI think it makes them smart.
Speaker DThe other thought I had last night as I was thinking about it, they're probably doing this research to figure out what their Amazon private label play is in the beauty space because they're doing testing etc and so that was a last minute thought I had.
Speaker DLike, are they really thinking about how to do private label lab work and information and get insights on other brands and products?
Speaker AYeah, that makes a ton of sense.
Speaker AActually, Lisa, I just following your thread, I mean I, I honestly think this is a research project for Amazon.
Speaker AI don't even know that.
Speaker AI mean all the telltale signs are there, the interactive, you know, experiences.
Speaker AThis is like a glorified pop up to me for Amazon to test, you know, what's the demand in Europe for especially some of the American skincare brands and some of the other American makeup brands.
Speaker AIt's, in some cases it is a lower price point than you might be able to get for some things that are in Europe right now.
Speaker ASo I think it's, it's 100% a test.
Speaker AJust like the, you know, the salon.
Speaker ALike, we haven't talked about the salon that they opened in London for.
Speaker AYou know, that was four years ago.
Speaker AIt's still open.
Speaker AI think this is a testing ground where, just like you said, they're getting information about what products are in demand in those areas, what's being tested.
Speaker ALike, they can gather all of this information and then decide what they're going to do with it.
Speaker ABut, Chris, I, I'm going to let you close out because I've got a feeling that you don't agree here.
Speaker DI don't know what it is.
Speaker AMaybe just years of working with you, but, but what are your thoughts on.
Speaker AOn the Amazon beauty store in Milan?
Speaker AChris?
Speaker BYeah, I'm actually, I'm kind of gobsmacked that everyone is kind of positive about this.
Speaker BLike, I mean, I mean, Lisa sounds like she's kind of hedging a little bit.
Speaker BLike she said the world doesn't need it.
Speaker BAnd I tend to agree with that.
Speaker BI mean, I just look at, I mean, my take on this is, like, I looked at the pictures, the environment looks so sterile and unappealing to me, which is my main issue with every store that Amazon opens.
Speaker BThe devil's in the details.
Speaker BLike, is it a concept that could work?
Speaker BYes, but you have to, you have to create the store in the right way.
Speaker BAnd this store feels like it's designed by tech nerds to showcase technology as opposed to actually merchandising products.
Speaker BAnd that's what the whole press release was about.
Speaker BSo.
Speaker BSo I'm skeptical of them being successful in the long run opening any store, you know, when that's the approach that they take.
Speaker BAnd I remember listening to an interview with Jeff Bezos, like, a few years ago.
Speaker BHe's like, we're only going to go into physical stores if there's a real, real differentiation play to us being in that physical store.
Speaker BAnd, and these tech gimmicks are not that to me.
Speaker BLike, I just, I just don't see it working.
Speaker BI don't see them being able to capture the luxury market because Amazon just doesn't.
Speaker BJust doesn't connote luxury, even though they may want to move up that way, you know, as David said.
Speaker BBut I don't know.
Speaker BThat's my.
Speaker AChris, do you.
Speaker ADoes that change for you?
Speaker AIf you look at this not as like we're rolling out multiple stores and it's a one store experiment.
Speaker ALike they are gathering data on.
Speaker ALike are you putting La Roche posay on the, on the, you know, skin care demonstration?
Speaker BGot to get a lot of people into the store to do that.
Speaker BAnd from their past store experiments, they haven't had that much traffic to pull that off either.
Speaker BAnd the other thing that pisses me off too, just to get on my soapbox, is I get tired of giving Amazon license to do anything they want just as an experiment.
Speaker BSome experiments just aren't smart.
Speaker BAnd I don't know, this could be one of them in my mind.
Speaker AInteresting.