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Amazon Is Entering Australia Blind

If you went to Canada in January 2015, you’d have witnessed one of the most spectacular failures in retail history.

American retail giant Target Corporation [NYSE:TGT] ventured into the Canadian market overly confident that it could recreate its success over the border. Armed with a well-established brand and marketing to a culturally similar demographic, the company thought they were in for an easy ride.

But after two years of failed attempts, CEO Brian Cornell was forced to pack his bags, close 133 stores, and count his losses.

US$5.4 billion in losses, to be exact.

But Target’s epic failure can be redeemed. It has been valuable to investors and entrepreneurs alike. The insight gained from examining failed business ventures is often more useful than taking inspiration from the success stories.

The lesson learnt from Target is simple. Never enter an international market unprepared. Despite how similar your populations may seem, the money is hinged on the cultural nuances.

Amazon.com, Inc.[NASDAQ:AMZN] and its CEO Jeff Bezos are poised to make the same mistake of being overly confident in their ability to tackle Australia.

That much is clear with all the talk in the media about how Amazon is going to crush the Aussie retail industry.

But as Shae wrote back in September, Amazon has already failed to penetrate major international markets. Despite China’s huge e-commerce sector, Amazon was only able to secure 3% of it. The same disappointing result ensued with Amazon’s recent adventure into the Mexican market.

And looking at the stats from Anthill Online, Australia could pose a similar problem. Aussies still hold their in-store shopping experience dear. Even 64% of tech-saturated millennials still prefer physical shopping to online web-malls.

Clearly, the Australian market is not going to be an easy one to infiltrate. The unprecedented failure of Starbucks Corporation [NASDAQ:SBUX] to sell Aussies anything less than impeccable coffee is a perfect example of that.

One thing that’s going to help Amazon succeed is partnering with local companies. Australia is not only home to hard-to-crack consumers, but to difficult terrain as well. Our land is unique, and unlike anywhere Amazon has ventured before.

If Amazon hopes to fulfil their promise of fast, accurate deliveries, they will need the help of Australians themselves. One local company, in particular, has just the thing they need: They’ve created never-before-seen mapping technology with crystal-clear imaging. The kind of accuracy that Amazon and every retailer desires.

Amazon may or may not be a game-changer for Australian retail. We can all make our bets. But clearly, its success depends upon how well this American giant can navigate Australia and its market. According to our in-house tech expert Sam Volkering, they’re not going to be able to do it without the help of this Aussie mapping company. The name of this company is virtually unknown — for now. But it may not be long before Amazon and this tiny stock potentially take off. To find out how to potentially make the biggest retail shake-up of the decade work to your advantage, click here.

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