Can Only Top-Tier Retailers Compete?

Figuring out the space for retailers that are not a part of the "super tier" as I have dubbed them, those retailers very good at physical retail and ecommerce and mobile and the digital experience, has been a question I've been interested in for some time.

The bankruptcy announcement by Barneys in New York is interesting to me for this analysis speaking to the competitors Barneys was dealing with:

Scale allows these competitors to invest significantly in long term growth initiatives around customer-facing elements like websites and store remodels, and infrastructure like robust supply chains.

Barneys was at about $800 Million while those competitors were at the Billions level.

I think there is a lot of space for B2B companies providing these services the Barneys of the world cannot afford on their own.

Read the whole story here:

https://www.retaildive.com/news/how-barneys-new-york-lost-its-cool/560356/

Happy Reading,

J.W. Gant

How Amazon Competes and How to Compete With Amazon

This will be a short article that may lead to a deeper investigation and white paper.

What is Amazon doing besides just selling stuff online that competes with other players?

How are other players competing with Amazon in ways that may or may not include selling online?

Let's take a look at a few examples.

First Amazon.

They are masters at taking something they already do and monetize it in a new way.  They had massive data centers providing web service to Amazon.com that was mostly not in use.  They needed the massive power for their busy times.  Why not sell it as a service?

Amazon Web Services was born and now you too can host anything you can dream of in "the cloud".

This was quickly followed by others.  Microsoft Azure has found its place and there are countless players in the space now.

Here is one way Amazon is vertically integrating, taking some upstream or downstream product or service and creating a way to do it themselves.  Package delivery.

Amazon Orders Vans for Prime Delivery

Next are a couple of players that took Amazon eCommerce ideas and started providing the same solution for others.

This company is called Mirakl, a Paris based company, that has created a platform for other eCommerce sites to add resellers, just like Amazon.com does. They're the only player in the space and are big already, especially in B2B, and will be growing dramatically in the years ahead.  I promise you.

https://www.mirakl.com/

Next is a similar concept.  The product reviews that worked so well on Amazon.com became something you can add to your own eCommerce site.  Now there are multiple other players in this space but the original may still be the best.

https://www.bazaarvoice.com/

I think these responses are the correct path for all but the largest retailers.  I used to refer to retailers in a Tier level segmentation, Tiers 1 to 5.  Tier 1 was Walmart while Tier 5 was the local YMCA Christmas Tree sellers. I think there is now a super-tier reserved for those who do brick & mortar well, digital well, and eCommerce well.  How can smaller and regional players compete?  Third party providers.

Here is a great example:

https://www.retaildive.com/news/perfect-corp-rolls-out-makeup-ar-tool-for-small-businesses/559242/

Hope this gave you some food for thought.

Happy Reading,

J.W. Gant

Digital Transformation for CIOs

Great little read over on CIO.com.

Is your legacy company in need of a digital transformation?

I have seen first-hand how many missed opportunities reside at legacy companies that don't understand digital having identified $1.6 M in annual revenue just sitting at the table for a recent client.  Is digital transformation on your IT roadmap?

Read this article:

https://www.cio.com/article/3256045/digital-transformation-trends.html

Here is one piece from the article:

Inevitably, when they talk trends, IT leaders discuss their efforts to modernize legacy systems and expand on data lakes to create one version of the truth. This enables them to mine insights that help deliver value and create better solutions for clients, they say. But certain trends have emerged along the way while others have started to fizzle.

Here is a look at what CIOs and other IT leaders and observers are seeing.

Need help in this area?  Give me a call or reach out to your favorite consulting team.

Happy Reading,

J.W. Gant

Personalization in Marketing

I have seen first hand how merchandisers are so busy they can barely begin to move forward on future-leaning initiatives.

Missing out on personalization is a big miss however and should not be allowed to happen.

Salesforce estimates that adding Einstein personalization to your marketing sorting rules for grid pages, PLPs, will have a positive impact on revenue in the range of 6-9%.  Why leave that money sitting on the table?  Companies such as Certona are thriving on doing the work for you.  Just set up a data feed of your order history and the company will personalize recommendations, resulting in a revenue lift.

Oh, did I mention Amazon is in that game too?  Yeah.  Another threat from Amazon.  Just what you needed right?

Do it.

Here is a story on the subject of how marketers are failing to make this a priority:

https://www.clickz.com/personalization-powerful-priority/243913/

Here is a snippet from the piece:

It’s been a big news week for Amazon. The ecommerce giant’s shares have surpassed those of Walmart. Amazon announced the end of its restaurant delivery service, while launching a credit card an AI-powered recommendation service to improve personalization. Oh, and thanks to a 52% year-over-year increase in brand value, Amazon displaced Apple at the top of WPP and Kantar’s annual ranking of the most valuable brands in the world.

The latter two are certainly related. Available in a handful of regions for now, the recommendation service enables marketers to incorporate product recommendations and tailored search results on websites, in apps, and within content management and email marketing systems. It’s called Amazon Personalize, a nod to the company’s signature move.

Happy Reading,

J.W. Gant

PS I found this great little complementary article that is also worth your time, especially if you are in the supermarket industry.
https://retailleader.com/personalization-digital-food-retailing

eCommerce the Profit Drain

I found the title of this article to be quite eye-catching:

Is eCommerce Draining the Profit Out Of Retail?

Yeah.  That is truly a great question.

Top to bottom the entirety of the eCommerce ecosystem is focused on enabling a company to have an easy relationship with customers and quickly provide them with goods at a low cost.

That has been the focus of traditional brick & mortar retailers for over 100 years but the cost structure of getting good TO a customer is quite different from providing a place for customers to go get goods FROM a retailer.

It is a read that is worth your time.  Get the whole story here:

https://www.digitalcommerce360.com/2019/05/16/is-ecommerce-draining-the-profit-out-of-retail/

Happy Reading,

J.W. Gant

Best Retail Mobile Apps

I happen to think the world of retail is as competitive as it gets with some of the best minds and the best business plays happening.

A look at retail mobile apps is worth your time and this article by the folks at ClickZ uses the Forrester research to help you gain a view:

https://www.clickz.com/retail-mobile-apps-forrester/227758/

Here is a snippet from the piece:

What makes a retailers’ mobile app great? That question has been asked by countless marketers (and by, um, us) over the years. Forrester Research tackled it in a new report that retailers’ mobile apps, and where they excel and miss the mark.

Mobile commerce is perpetually on the rise. During Cyber Monday, smartphone sales accounted for $2.1 billion, a 48.1% growth year-over-year. And according to eMarketer, more than 90% of our time on smartphones is spent in-app.

Here’s the catch: We’re also highly selective about the mobile apps we use. App downloads keep increasing, but users’ interest disappears as quickly as a Snap. In 2017, App Annie found that the average smartphone owner only uses 30 per month and nine per day.

When Apple revealed the most popular apps of 2018, Amazon was the only retailer on the list, which was dominated by social media and entertainment. In order to command consumers’ attention, retailers have to make sure their apps are top notch.

Happy Reading,

J.W. Gant

CVS the Customer Experience Store

I found this little article to be well worth your time.

CVS has been doing pretty serious work over in R.I. trying to crack the code of the Age of the Customer.

Here is the full article on their concept stores and then one on their overall initiatives:

https://risnews.com/first-look-inside-cvs-healthhub-concept-stores

https://risnews.com/cvs-invests-big-customer-experience

Here is a snippet from the piece on their concept stores:

“We're opening a series of healthcare concept stores which will be a testing ground for a new retail engagement model that brings healthcare services to consumers in a more convenient, more accessible, and more customer focused manner,” Merlo said speaking at the JPMorgan Healthcare Conference. “As we pilot new programs and service offerings we will identify the solutions that are most effective and scalable and then roll them out more broadly across our footprint.”

Happy Reading,

J.W. Gant

Mobile Payments Update

I've been following mobile payments since I worked in the field a few years ago.  It is interesting in a few ways but mostly because I view it as a leading indicator of overall digital transformation.

Paper money will never die but we are increasingly likely to have our phones with us while having no paper money.

The reason retailers want it is for the digital relationship it enables with their customers.  After all, money isn't broken so what is the real driver of adoption?  Buy 10 coffees at Starbucks and get the 11th for free, that's what is driving adoption.

Here is an update on the state of mobile payment adoption:

https://www.clickz.com/mobile-payments-2019-beyond/222602/

Happy Reading,

J.W. Gant

IoT Connected Experience In Stores

The in-store shopping experience is going to continue to be more interactive.  Digital relationships are a must for the store of the future, happening today.

I first really jumped at this with BLE, bluetooth, interactions with smart phones and then smart watches.  That is still ongoing but there is a real opportunity to do it a different way and it appears Kroger is teaming up with Microsoft to do just that.

Read the story here:

https://www.mobilepaymentstoday.com/news/microsoft-kroger-to-test-connected-experience-grocery-stores-in-pilot/

Here is the blurb that should catch your eye:

Store associates will also be able to use the technology to speed up curbside pickup and Kroger will use the Edge technology to sell digital advertising space to consumer packaged goods brands, according to the release.

Thank to a few of the folks previously from MCX who pointed this piece out on LinkedIn.  You know who you are.  :-)

What we absolutely know is the impact the great recession, combined with ever-improving store brand generics is having on traditional consumer packaged goods. During a recession shoppers cut back.  They try out the store brand version of whatever CPG widget or food stuff they think suits them.  The quality of these has increased dramatically over the decades and the average consumer likes it, then never goes back to the more expensive "name brand" version.  CPGs are desperate to get customers back and they have huge advertising dollars to work with.  Enter the Edge technology system.

Happy Reading,

J.W. Gant

More on the Future of Retail

End of year articles can be a bit lazy.

Fill in the blank, this is what happened last year and this is what might happen next year.

Still, it is a good time to assess the current state of things.

This USA Today article on tech in retail is another good one.

https://www.usatoday.com/story/money/2018/12/27/amazon-shopping-experience-makes-retailers-up-their-tech-game/2350988002/

Happy Reading,

J.W. Gant

BRotD - Entry - 0256 Future of Retail

... is digital.

Best Reading of the Day

This is a great little article over at Forbes.com.

https://www.forbes.com/sites/forbescommunicationscouncil/2018/12/27/four-keys-to-the-future-of-retail-in-2019/#5c1ed11b4d54

Here is a snippet from the piece:

There have always been two retail seasons in my mind: the holiday season and everything else. In fact, nearly 20% of all retail sales happen during the holiday season. That condensed period of sales is unique and often sheds some light on much larger consumer trends.

Taking into consideration this year’s holiday shopping data collected by my company, Salesforce, here’s a look at some of the major trends we might see play out in 2019.

Happy Reading,

J.W. Gant

Nike is Digital First

Need a new athletic shoe? 

Fan of Nikes?

Get connected.

They've become trailblazers really in their overall approach.  Digital first, mobile first, and leading brands toward the new engagement era.

For many customers the new funnel for the customer journey starts with the mobile app.  However, a potential sale can enter anywhere on the path and that is all enabled by a digital-first mindset.

Read more here:

https://www.retaildive.com/news/nike-execs-see-digital-as-the-majority-of-future-business/544975/

Happy Reading,

J.W. Gant

Not eCommerce but Experience Commerce

Every now and then someone coins a phrase that really captures something.

Bricks & Mobile really works well from my perspective.  A play on the traditional retail store enhanced with mobile.

Now its not eCommerce but Experience Commerce.

Experiences win customers and retain them.

I agree.

Here is a snippet from the piece:

Recently, I went on a health kick and stopped going to the [donut] shop entirely. When I finally returned, the woman who runs the shop said, “We thought you moved! It’s good to see you.” I made the decision right then to reinstate my once-a-week doughnut splurges. They were so happy to see me, they gave me my doughnut free, and I was utterly charmed by the interaction. It’s nice to feel seen, and if my business means that much to a sweet couple, then I want to make sure I spend my extra calories on them.

In the world of ecommerce, it can be a bit daunting to make sure customers feel as welcome as I do in that doughnut shop, but focusing on experiences, rather than sales, can mean more personal, and longer-lasting, relationships with customers.

Here is the full story:

https://www.clickz.com/experience-commerce-winning-customers/221080/

Happy Reading,

J.W. Gant

eCommerce Native App or Hybrid Progressive?

I've had quite a few conversations this year around the question of when a company, retailer or manufacturer looking to go direct to consumers, should build a Native mobile app.

That isn't an easy question to answer.

The company culture comes in to play and the relationship the brand has with its customers.  If you just need a simple interface for online sales then why build a native app?  Mobile web is a great solution.

Then one app I've been using came to mind: Hamilton

Yes, the app for the Broadway musical.  For a while I was in that app every day as the lottery for shows in Boston was held every day.  I found myself doing lots of other things in the app and play around with it a bit even now that the show has moved on from Boston.  It occurred to me if they can get me in to their app every day then the opportunity exists for other brands to do the same.  If the relationship with their customers demands it.

Here is a little article on a different approach:

https://econsultancy.com/five-ecommerce-brands-success-progressive-web-apps/

Here is a snippet from the piece:

Essentially, PWAs [progressive web apps] are mobile apps that are delivered through the web. By using an app shell and pre-caching on a user’s phone, they can be added to the home screen and will load instantly.

Google states that 53% of users will abandon a site if it takes longer than three seconds to load. As a result, the functionality of a PWA can simplify the online shopping experience, and even improve conversions.

Recently, we’ve seen a number of ecommerce brands capitalise on the technology.

Happy Reading,

J.W. Gant

Online eCommerce Grocery Sales to Grow Fast

The toughest nuts to crack are often the best.

Not sure that is the case here but I'm still convinced we will see quite a shift in our Supermarket shopping habits as the Information Age continues to change our daily lives.

These folks continue to think grocery will move to online.

Here is a snippet from the piece:

Online sales of groceries continue to grow much faster than the overall market and that web growth is expected to continue, according to recently released datafrom the United Kingdom-based Institute of Grocery Distribution (IGD).

Yes, it references the UK but the data is U.S. focused.

Here is the full article:

https://www.digitalcommerce360.com/2018/12/17/all-signs-point-to-continued-growth-in-online-grocery-sales/

Happy Reading,

J.W. Gant

Is AR Poised to Break Out?

I love these predictive articles.

It is all complete nonsense, really, that someone will write one of these.  Usually they are forced to make a deadline and write about something.  This is like a stocking stuffer for writers.

But it's still fun to read these.

:-)

Will AR have a breakout year in 2019?  Sure.  Or no, no way.

Augmented Reality is one of the latest buzzes going around.  The iPhone X introduced it as a basic function by utilizing the face capture technology to create animated emojis in text messages.  Wow.  Cool.

No.  Not really.

So what's next?  Read on to find out:

https://www.zdnet.com/article/2019-the-year-ar-finally-goes-from-unsexy-to-cool/

Happy Reading,

J.W. Gant

Amazon Pay In Store

Move over Apple Pay?

Move over Android Pay?

Move over Samsung Pay?

Move over Walmart Pay?

Amazon is on the move.

Not so fast, I say, but this move makes sense.  This is very much like what PayPal was trying to do when it created Samsung Pay.  They have countless payment methods on file for online payment.  Why can't they get those payments used in the store?

Because they are very different worlds that's why.

Read this snippet here:

Amazon has found a new target to tackle in its continued pursuits to dominate retail: in-store mobile payments.

Amazon has been talking with brick-and-mortar retailers to convince them to adopt Amazon Pay, the e-commerce giant's online-payment option The Wall Street Journal reported. The service has so far been touted as a payment option similar to PayPal for shopping online, but the Journal reported that Amazon is looking to expand Amazon Pay capabilities.

Here is the full story:

https://www.businessinsider.com/amazon-to-challenge-apple-with-in-store-mobile-payments-report-2018-11

Happy Reading,

J.W. Gant

Nike and the Store of the Future ... Today

It started for me with the launch of the Nike Apple Watch.

An Apple Watch branded specific to Nike.  Cool looking too.  There's much more going on there than I realized at first however.  If a loyal Nike customer is wearing that watch, they likely have the Nike app to go with it and ... what happens when that combination goes to a mall near a Nike store?

Bingo.

Nike Stores are really at the cutting edge as this piece talks about.  Here is a snippet from the piece:

Retail isn’t dead, boring retail is. That was the sermon Nike was preaching at its New York City headquarters yesterday in a presentation by chief digital officer Adam Sussman, senior director of Nike Stores Experience Michelle Warvel, and Ron Faris, head of Nike’s SNKRS app and s23 NYC digital studio. The brand is using SNKRS to connect with culture, experimenting with turning experiences into retail opportunities, as well as preparing to roll out in-store features in which customers check out their new kicks with their phone.

I love how that article begins by the way.  So very true!

I talk about the traditional ranking of retailers, Tier 5 the smallest like your local christmas tree vendor, and Tier 1 the largest like Walmart.  There is really a "super tier" now.  Those retailers putting it all together: digital interactions (mobile and social), ecommerce, and a great in-store experience.  They are the very top of the list.  Some companies can do one of those great and succeed but they'll never be the biggest of the big.  Two gets you a long ways but the very best do it all.

Here is the full story:

https://www.fastcompany.com/90256871/nike-showcases-its-mobile-vision-for-the-future-of-retail

Happy Reading,

J.W. Gant

Mobile Driving Retail

The trend is strong and continuing.  Mobile interactions with customers is increasingly at the heart of the digital relationship between retailers and their customers.

Here is a snippet from the piece:

Holiday sales are set to grow 13% this year over 2017, with mobile devices pushing 68% of e-commerce visits and 46% of orders, according to a new report from Salesforce. The cloud computing firm estimates artificial intelligence (AI)-based product recommendations will account for 35% of revenue.

Here is the full story:

https://www.retaildive.com/news/mobile-to-drive-68-of-holiday-e-commerce-traffic/532468/

Happy Reading,

J.W. Gant

BRotD - Entry 0264 Grocery App Usage Increase

Best Reading of the Day

Forbes.com has a great piece out about mobile apps and supermarkets.  That's something I know a little bit about as I led an effort for 3 years in that space.  They predict the apps will see a 50% increase in usage.  That is something else I know a little about having written a few papers on the subject.

Here is a snippet from the piece:

When the fridge is empty, and you are too tired to put on real clothes to go shopping, reaching for the phone to use a grocery app is an easy solution. You are not alone when you do this. According to a study from eMarketer, grocery app usage will grow by 50% this year, and 18 million Americans will order food this way. However, brick-and-mortar grocery stores are not going away and can take advantage of this industry shift.

Here is the whole story:

https://www.forbes.com/sites/lanabandoim/2018/09/11/grocery-app-usage-will-grow-by-50-what-this-means-for-the-industry/#752a389164dd

Happy Reading,

J.W. Gant