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Google Extends Fnac Darty Tie-Up, Boosts Presence in France


Alphabet Inc.’s GOOGL division, Google has extended its existing partnership with Fnac Darty, a French retailer in household appliances, electronics and entertainment products.

Per the latest move, the retailer will set up demonstration areas for Google Assistant in its stores. Customers will be able to explore the Google world and examine products in which Google Assistant is incorporated like Google Home smart speakers and smartphones.

We note that the extended tie-up will provide Google with a market place wherein it will be able to showcase its products. Moreover, the demonstration areas will provide the customers hands-on experience of the Google products. This is likely to boost the company’s customer base and sales volume.

On the other hand, Fnac Darty will be able to make shopping experience customer friendly as it will incorporate transactions functionality of Google Assistant in its own business system. This will allow customers to purchase products using voice commands via Assistant app in their smartphones and pay through FNAC accounts.

Strengthening Foothold in France

With the latest move, Google’s footprint in France will strengthen. Moreover, the company will gain traction in the home automation market of the country.

According to recent report from Statista, revenues in the French smart home market are expected to grow at a CAGR of 22.7% between 2018 and 2022.

Also, Google’s Assistant and Home, with the demonstration areas in the retailer’s store, will gain a first mover’s advantage against Amazon’s AMZN Alexa, which is due to get launched in the country.

Last year, the company entered the French home automation market with the launch of Google Assistant and Google Home. As part of its connectivity business, Google also launched Wi-Fi services in the country.

Hence, with the strong efforts to expand business, Google will continue to strengthen its position in France

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Google – Amazon Fight Intensifies

The latest partnership is likely to improve Google’s competitive position against Amazon in the home automation market.

Recently, Google launched smart speakers in India to combat competition from Amazon Echo which was launched earlier this year.

Further, Google Cloud is gaining momentum by winning clients and thus giving a tough competition to Amazon Web Services (AWS).

Additionally, the company has updated Google Play Audiobooks by adding important and useful features to it. This has strengthened its competitive edge against Amazon’s Audible.

Nevertheless, Amazon’s dominant position in the cloud and rapid adoption of its products in the home automation market presents significant competitive threat to Google parent Alphabet, which carries a Zacks Rank #4 (Sell).

Stocks to Consider

Investors interested in the broader technology sector can consider some better-ranked stocks like Autohome ATHM and Match Group MTCH. Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Autohome and Marchex is currently pegged at 33.48% and 12.5%, respectively.

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