Disruption & The Bridge: A Video Clip

The world’s leading experts studied the challenge, identified the opportunity, and – sparing no expense – built the solution. It was perfect. It performed as expected. And, it was useless.

Lately, the term “disruption” is often used, and misused. In the business community, disruption is used to describe economic transformations, changes to consumer path-to-purchase, shifts toward digital consumption, the “retail apocalypse,” and jobs lost.

At our factory in Central America, disruption takes on a deeper meaning.

This video is about disruption, innovation, and leveraging historical expertise…

Disruption & The Bridge Video Clip

What I Should Have Said, But Didn’t

 

Last week in Las Vegas, during the largest fashion industry trade show, MAGIC/PROJECT, I delivered the keynote presentation for the YMA Fashion Scholarship Fund and UBM Advanstar. It was entitled, “Disruption is the Mother of Invention.”

At the end of my presentation a woman stood up to ask a question. Actually, she made a statement.

“I own a fashion retail store,” she exclaimed. “I’m a good merchant, it’s a good store. It’s been in business a long time. Customers shop my store with their smartphone in their hand… and then they buy the item on Amazon Prime.”

She cried out, “it’s not right. It’s not fair.”

And then she said,

“What do I do?”

My answer was “textbook,” when the last thing needed was a textbook. Continue reading “What I Should Have Said, But Didn’t”

Will Another 80,000 Retail Stores Close?

Take a deep breath… 

UBS Financial estimates that for every 1 percent increase in eCommerce penetration to total retail sales (excluding food & gas), 9,000 retail stores would need to close in order to maintain current levels of sales per physical store. 


This would be the equivalent to shutting down seven Toys ‘R’ Us chains. 


Continue reading “Will Another 80,000 Retail Stores Close?”

Department Stores & Apparel: The Future is Blurry

Morgan Stanley predicts that the department store share of the apparel market will drop from 24 percent in 2006 to only 8 percent by 2022.

Many analysts continue to predict that, this year, Amazon will become the largest retailer of apparel in the United States. 

Top apparel retailers are ranked as Walmart, Amazon, Target, Macy’s, Kohl’s, The TJX Companies, Gap, Costco Wholesale, Nordstrom, Ross Stores, and JCPenney.

Continue reading “Department Stores & Apparel: The Future is Blurry”

22 Billion Minutes per Month

Americans spent 22 BILLION minutes on Amazon shopping platforms in December 2017 alone. More than the next nine platforms combined.

Interestingly, there is a large gap between time spent and dollars spent on mobile vs. desktop devices: while Americans spent nearly two thirds of their online shopping time on smartphones or tablets in Q4 2017, more than 75 percent of e-commerce dollars were spent on desktop devices. This indicates that many people browse products on their mobile devices, but prefer the convenience of a larger screen and keyboard to complete the checkout process.

#retail #ecommerce #shopping #smartphones #tablets #checkout #mobiledevices eBay Walmart Kohl’s Target Macy’s

Data and chart from Statista Global comScore, Inc.

Which Type of Innovator Are You?

Choosing the right innovation model for your company is all about context.

This article from Boston Consulting Group well articulates the need to evaluate industry context, your culture and core competencies as they relate to innovation.

Industry context matters because only a subset of models can succeed in most industries. Some models are better suited to—and increase shareholder value in—certain industries and sectors than others. For example, four models drive TSR premiums in consumer retail:

  • Creators take on more risk but can achieve dramatic success. Lululemon Athletica, for example, capitalized on the growing yoga movement by offering a distinctive life style brand that encompasses everything from the actual products to the in-store customer experience to corporate philanthropy.
  • Solution builders create loyalty by understanding specific shopper segments and meeting their needs. For instance, Target delivers a “cheap but chic” set of offerings that meet the needs of its young, often trendy customers.
  • Leveragers create a superior business model and then capitalize on it to sustain a position of industry leadership. Costco, for example, combines everyday low prices, a lean supplier network, and a members-only approach to stand out from the retail pack.
  • Expanders achieve rapid share growth by moving into adjacent markets. For instance, Amazon brings its consumer data analytics, logistics capabilities, and exceptional customer service to an ever-expanding number of retail sectors, including fashion, luxury apparel, and—with the company’s recent purchase of Whole Foods—brick-and-mortar grocery.

Read the BCG article, Which Innovation Model is Right for You?

 

“Leadership is Not a Destination” – FutureCommerce Podcast

“No company can afford to stand still” – we sat down with David J. Katz – a LinkedIn Top Voice in Retail – to discuss how technology is changing consumer demands and pushing companies into creating better experiences.

Topics include: Robotics, Retail, Ecommerce, Technology, Fashion, and Jeff Goldblum.

Grab some popcorn, and a notebook.

Continue reading ““Leadership is Not a Destination” – FutureCommerce Podcast”