The Retail Market Is SHIFTING Again - Who Is Winning, Who Is Losing ?

What separates business winners from losers in today’s new e-commerce culture ?

A lot of pundits would say you need to be efficient, cost conscious and manage margins. Others would say you need to be really good (excellent) at something – much better than anyone else. Unfortunately, that sounds good but in our fast-paced, highly competitive world today those platitudes don’t really create winners.  Success has much more to do with the ability to shift.  And to create shift.  Quoted from “Winners Shift, Losers Don't” (see article).

As an example, Amazon’s current annualized sales are now $39 billion, rising 38% annually, of which 40% ($15.6 billion) came from Third Party Sellers in their Marketplace (see "Third Party Sellers” here). 

However, Amazon’s Marketplace of Third Part Sellers didn’t exist 10 years ago, thus demonstrating the undeniable power of e-commerce Market Shifting – taking the lead ahead of anyone else. 

Today, eBay, Walmart, Sears and others are all copying Amazon’s Third Party Seller program for competitive reasons.  However, these copycats are not Market Shifters as they didn’t change anything (other than perhaps their companies into a more competitive position).  The net-net of this Major Market Shift are a few early winners and many late-to-arrive losers.

Another terrific example of Market Shifting is by Walmart, who intends to become the world’s largest online retailer surpassing Amazon, with their “Project Titan’s Next-Day Delivery. (see MOST CURRENT Articles #1  and  #2 ). This improves on Amazon’s 3 to 10 day delivery and at lower delivery costs.  

Tommy Lasorda said: “There are three types of baseball players: those who make it happen, those who watch it happen, and those who wonder what happens.”

You can watch what happens with “The Battle Of The Titans” while trying to expand your market share, same as your competitors are doing (see GREAT article) – OR – make it happen by Market Shifting with new platforms to spike your growth as The Titans are doing.   

You certainly will not take market share from Walmart or Amazon doing the “Same-Old-Thing” – quite the opposite.  Even matching The Titans won’t cut it anymore.

Let Us Help You Create Your “SuperCyberCenter^©” – The Next Major E-Commerce Innovation Shift

For the Top 500 chain retailers, in-store retail sales are marginally up while online sales are now 10% to 30% of total sales.  (see article)

If your current sales are not at least equal to either of the above averages, you need a Market Shift:   maintaining your core business;  while shifting to new platforms with quickly changing consumer preferences.  "Times have changed forever.  Trends are NOT like the shadows of yesterday." (Quote by Robert Taylor)  It’s essential to shift to new platforms quickly with today’s trends or become irrelevant.

And forecasting future online sales over the average growth rate of 11.3% annually (see above article) is downright dangerous without making a significant Market Shift.

Here’s How To Market Shift with Your “SuperCyberCenter”:

ADD 15% to 20% of sales from other LOCAL retailers, restaurants, pharmacies & grocers (Third Party Sellers) to your existing in-store sales (as The Titans are doing) with a SuperCyberCenter = 40% additional sales & 79% added profits including your 15% ROOF (Rapid Online Order Fulfillment) in-store sales – WITH HIGHER PROFITS.

Shift your overall strategy to easier achieved platforms as many of these LOCAL retailers do not yet have e-commerce capability but know they need it.  Why struggle with underperforming e-commerce fulfillment platforms when easier, more profitable trends are right in front of you.

“Too often business leaders spend too much time thinking about what they do.  They think about costs, margins, the “business model” and execution.  But success really has less to do with those things than understanding trends, and capitalizing on those trends by shifting. You don’t have to be the lowest cost, or most efficient or even the most passionate.  What works a lot better is to go where the trends are favorable, and give customers solutions that align with the trends. And if you do this early, before anyone else, you’ll have a lot of time to figure out how to make money before competitors try to cut your margins!”

“Recognize that most “execution” is about preserving what happened in the past.  Trying to do things better, faster and cheaper.  But in a rapidly changing world, new competitors change the basis of competition.” 

“For investors, employees and suppliers you are better off to be with the company that shifts.  It has the ability to grow with the trends.  And the faster you get out of those companies which are stuck, locked-in to their old business model and practices in an effort to defend historical behaviors, the better off you’ll be.  Despite the P/E multiples, or other claims of “value investing,” to succeed you’re a lot better off with the company that’s finding and building on trends than the ones managing costs.”  Quoted from “Winners Shift, Losers Don't” (see article). 

Your new SuperCyberCenter sales are assembled, paid for as we leave the store and delivered by our professional CyberValet^® Shoppers from all your Third Party Sellers usually in less than 1-Hour  24 / 7 / 365 at the same (or less) price than in-store prices.  And delivery can be FREE.  Collectively, these are the reasons why the other LOCAL stores will participate with you, INSTEAD OF THE TITANS, as NONE of The Titans can offer them any of these significant SuperCyberCenter features, making SuperCyberCenters uniquely different than “Marketplaces”.  AND, your high profile nationally-branded stores are the “BEACON” to drive in local online consumers (bringing even more traffic to you from your Third Party Sellers’ myriad and loyal local customers.)

AND it’s 100% turnkey – We do it all.

Let your customers know about your SuperCyberCenter’s 1-Hour In-Store Shopping & Delivery program – they will be delighted to participate because their needs are so great and SuperCyberCenters uniquely offer other important local stores and restaurants “When You Just Can’t Get out, Or Have Better Things To Do ®”  Your LOCAL Third Party Sellers will willingly do the same promotions.

Neither Walmart nor Amazon can match, let alone beat, your SuperCyberCenter.  (It’s patented.)  And it complements & significantly enhances your current Online & In-Store platforms.

Your SuperCyberCenter is the difference between being relevant, or becoming irrelevant, in today’s new e-commerce culture.  However most staff members prefer the “Same-Old-Thing” because it’s job security – no risk – nothing unknown/new.  Only rising star staff members have the chutzpah to recommend such reasonable initiatives as Market Shifting and SuperCyberCenters.

If 40% sales increase with 79% higher profits is of interest, let’s discuss the feasibility of your company adding a SuperCyberCenter (or, in the least, joining one).

Thank you,

Gail

The Battle Of The E-Commerce Titans (Wal-Mart & Amazon) Heats Up Fast - LOOK AT THIS

For several years now, we have been reporting on The Growth Of The Internet as it relates to retail stores and shopping centers.

At first, our reports were met by Out-And-Out skepticism.  “After all, 15% annual growth of not much is still nothing.”  Nobody is saying this  anymore.

Our Online Retail Sales Growth Chart (below) was summarily discarded by most last year – Now it is used by many as reference material.

What also was ignored:   “The Battle Of The Titans”  (Click Here) between Walmart and Amazon for dominance of E-commerce. 

LOOK AT THIS IMPORTANT article about Amazon (Click Here).  Their surging online sales plus Walmart’s “Project Titan” (Click here) with faster delivery (Next-Day instead of 3 to 10 Days) of online orders from their local stores, are heating up E-commerce competition to the boiling point.

These powerful initiatives will raise online retail sales way beyond anything anyone anticipated, thus raising the stakes for all other players WAY beyond the current E-commerce Status Quo (i.e. free delivery in 3 to 10 days).

THE NEXT DIMENSION OF E-COMMERCE BEGINS.

AND, LIKE IT OR NOT, YOUR STORES ARE ALL RIGHT IN THE MIDDLE OF THIS ENORMOUS NEW BATTLEFIELD.

After all – it is YOUR store sales that the Titans are after.  Neither Walmart nor Amazon is going to let anyone win without giving huge unmatchable consumer incentives way beyond what is sustainable.  As the above reports confirm: It’s going to be a long and bloody battle.  There will be a few winners starting with the consumer (and Walmart) and a lot of losers starting with single-line Bricks & Click stores who rely on 3 to 10 day delivery services.

Previously; Bricks & Clicks retailers could hide behind the fact that Walmart & Amazon did not sell their BRANDS as well as the major segment of consumers who did not want to go to Walmart’s large and crowded stores.

THIS ONLINE BATTLE HAS 100% CHANGED ALL THAT. They now both have significant Online “Marketplaces” – participating retailers filling in their blind spots including all independent brand names.

SCARY STUFF:  Look at the tremendous firepower these two are pouring into this long term, fiercely fought battle.  Nobody else in their right mind can even think of matching this as the Titans extend their powerful reach with much lower prices, much wider selection, and now much faster delivery right past your stores into your customers’ living rooms. 

Stores with flat in-store sales can no longer count on increasing their e-commerce sales to make up the difference.  Pick-Up in-store and 3 to 10 day delivery – even if it is free, won’t cut it now.  Of course, you could try in-house delivery as Webvan did and Sears is struggling to do with MyGofer !

BUT HERE IS THE SCARIEST THING

Inertia & Apathy:  Everyone is afraid of losing their job – their focus is not their customers, company or market cap – so nothing original or daring is done – except by Wal-Mart and Amazon;  who now have an open field to play in – virtually uncontested.  Without immediate, innovative and aggressive competitive leadership, the future growth engine of retail will be permanently lost to these two Titans.

SUMMARY:  The Only Proven Solution Against The Titans is ROOF (Rapid Online Order Fulfillment – 24 / 7 / 365 – In-Store Shopping & Delivery usually in less than 1-Hour)

The only risk you have is in doing nothing. 

The fact is:  improving your e-commerce service level (and surpassing theirs) is easy, cost effective and clearly the future.  ROOF is also 100% turnkey.  However, as ROOF is relatively new, its implementation will take leadership from the top of your corporation.

Our brief, but comprehensive, online slide presentation including options and FAQs can be viewed here.   (NOTE:  Our ROOF website is ‘live’ in zip 33180 for demonstration purposes and can be reconfigured to meet your requirements.)

P.S.  For even greater increased revenue and sales, ask about creating, or joining, a ROOF Branded SuperCyberCenter^© to out-distance Walmart and Amazon’s Online “Marketplaces”.

 

Thank You,

Gail