And for the time-pressed, here’s the speed summary of key insights/takeaways. Brilliant.
The future is e-commerce; offline commerce will serve only two purposes: immediacy(stuff you need right away), and experiences (showroom, fun venues).
But immediacy may no longer a promise for offline commerce companies as both Amazon and eBay have announced same day delivery.
The role of offline lies in the value of the “showroom” and “entertainment” aspects to places like Williams Sonoma. The future of commerce is a hybrid model with (entertaining) showrooms + online fullfillment
The future of e-commerce is combining online and offline experiences in disruptive ways. (Chloe + Isabel, Warby Parker, Everlane, and Stylemint)
There is no such a thing as e-commerce any more. There’s just commerce. You can innovate in commerce with technology, but the e-commerce silo is dead/dying (mobile payments are disrupting/removing the online/offline divide).
The future of e-commerce is vertical integration in markets where there is significant markup in both wholesale and retail (think Shoedazzle, Bonobos, J Hilburn, Warby Parker, IndoChino).
Few successful e-commerce companies were started in the early 2000s, although a slew of recent new entrants appear to be getting traction - flash sales, social commerce,subscription commerce and other new “content + commerce” models
The first wave of e-commerce was about commoditization this wave online and offline is about being a “merchant” (point of view, authority, experience etc).
The key equation driving e-commerce is: profit = lifetime customer value minus customer acquisition costs
“If it has a UPC code, Amazon will beat you.”
Before you enter the e-commerce game, visit an Amazon warehouse.
E-commerce is good for two things – price and exclusives. Amazon will beat you on price, so you have to beat it on exclusives.
The only way to escape commoditization and catalogue commerce dominated by Amazon is to a) sell used stuff, or b) make your own products (or provide a marketplace for those things), or c) (possibly) offer customisation
Be wary of e-commerce businesses based on customization – they’ve existed for a decade (cafePress, Shutterly, Vistaprint) and yet none are thriving. Customers don’t want customization, they want great brands and great design, and they want to be told what they want.
The e-commerce opportunity is to contribute to the e-commerce ecosystem rather than sell directly yourself; four opportunities – 1) supply chain innovation, b) marketplaces, c)e-commerce solutions for small businesses, d) mobile payments
There’s room for innovation in the space as long as the ecommerce company creates value for all participants – the retailer, the supplier and the customer
To make money in e-commerce, you need to sell in emerging markets where there are no huge incumbents
Compete in an industry with a grey market, where consumers are willing to pay higher prices for reducing risk, for authenticity, and warranties
The opportunity is to venture into segments where Amazon won’t go (adult, arms… !)
The opportunity for e-commerce success is a) sell to iPad owners (iPad owners are 10x more valuable than non iPad owners), b) mobile commerce (nobody owns this yet), and b) target your customers who use social features (3 to 4 x more valuable)
You can’t sell to people who know exactly what they want – Amazon owns that; focus instead either a) ‘discovery‘ (“the best place to discover the stuff you don’t know you need”) or b) deep domain expertise
to succeed in e-commerce, you need to sell exclusives. You can’t sell stuff that Amazon sells, Amazon will crush you
Amazon is not a store, it’s the world’s best supply chain and logistics company. Amazon is transforming from a retailer to a marketplace+services provider over time.
Domain expertise, live assistance, and overall experience are the critical success factors for success in a market where price-competitiveness and scale rule
Necessary (but not sufficient conditions) for e-commerce success are a) remarkable, unique and branded experience and remarkable, unique and branded service; do what Apple, Tiffany & Co., Coach, Lululemon do in bricks and mortar commerce, but online
The Kitcatt Nohr loyalty club curse appears to have struck again after it was revealed that its Starbucks client is talking to rival agencies about its direct marketing and CRM account.
Publicis-owned Kitcatt Nohr has held the coffee chain’s business since 2011, when it beat off Havas EHS to become Starbucks’ first dedicated UK direct agency. It went on to devise the My Starbucks Rewards card, which allows customers to collect “stars” each time they buy a drink, and is also available as a mobile app.
Teradata (NYSE: TDC), the analytic data platforms, marketing applications and services company, today announced the findings of a global study of senior digital marketers strategic priorities for technology investment for 2015 and beyond.
Two-thirds (62%) of respondents cited improving customer satisfaction as their top reason for investing in more technology. Becoming more customer-centric was found [more…]
With 21 million people following her on Facebook and 18 million on Twitter, pop singer Ariana Grande can’t personally chat with each of her loves, as she affectionately calls her fans.
So she and many other stars are spreading their messages through new-style social networks, via mobile apps that are more associated with private, intimate conversation, hoping that marketing in a cozier digital setting adds a breath of warmth and a dash of personality.
It’s the Internet’s equivalent of mailing postcards rather than plastering a billboard. [more…]
As regular readers of theMarketingblog will know we often find and report on articles at H&C News
What is a “brand promise”?
It’s simply what it says it is, a promise from the brand to its customer. They are shaped by many factors. The brand offer, the marketplace it operates in, the capability of the brand and in some cases the promises of competing brands.
Today's generation of increasingly child-centric parents will smile in recognition at this U.K. spot for the Volkswagen Tiguan, which highlights the lengths they will go to for their kids with a gentle, wry humour.
It features a dad who looks increasingly wistful as he misses out on a golf trip to take his daughter to ballet, is marched off to a kid-friendly eaterie, sits watching "The Powerpuff Girls" with his daughter, and misses the goal in a soccer match because his son's in the bathroom.
AffiliRed (www.affilired.com), the performance marketing company for the travel and tourism sector, has appointed Irene Otero in a strategic move that focuses on driving business in critical European markets .
A graduate in Cultural Communication and Journalism, Irene has a great deal of experience in marketing and PR, with previous roles in the audio-visual sector as well as international promotion for the Ministry of Foreign Affairs in Spain.