Amazon’s recent, controversial retail innovation: the “Dash button”…

IllyDashButton1

Amazon is a Data/Cloud Service company (think of Google), is a technology company (like Apple) and is a business process innovator and platform (similar to Uber)…

…and, by the way, it is also a Retailer…

Talking about Retail, one of Amazon’s recent, controversial innovations – the “Dash button” (www.amazon.com/dashbutton) – is quite remarkable.

It’s remarkable because Continue reading

Retail Bullet Points: virtuous circles

Retail Bullet Points

Quick, valuable thoughts about retail…

Definition: “virtuous circle” – noun

  • a recurring cycle of events, the result of each one being to increase the beneficial effect of the next

Sam Walton built a business, Wal-Mart, that is now the biggest retailer in the world; what is extraordinary – the work of a genius – is the fact that he created from scratch an incredible, unbelievably simple, innovative retail business model: Continue reading

Retail Bullet Points: the four most significant challenges of creating retail technology solutions…

Retail Bullet Points

Quick, valuable thoughts about retail…

Creating and implementing retail technology solutions is very hard both for tech vendors and for retailers’ ICT teams.

The four most significant challenges are: Continue reading

Retail Bullet Points: the ‘cost business model’ of omni-channel…

Retail Bullet Points

Quick, valuable thoughts about retail…

Let’s see what the cost business model of omni-channel looks like, when you mix physical stores and e-commerce:

  • your average physical store typically adopts a fixed-cost business model, where “fixed” means that there is no strong, direct relationship between costs and revenues; in other words, your brick and mortar store costs you X$ (for real-estate, logistics, personnel, etc.), and X doesn’t change significantly if you sell hundreds of items every day or if you sell ten times as much
  • your e-commerce is far less capital-intensive and basically employs – above certain volumes – a variable-cost business model: the more you sell (…accept orders, process them, pick-pack-&-ship…), the more it costs

When you go omni-channel, you sell Continue reading

Retail Bullet Points: ACTIONABLE insights…

Retail Bullet Points

Quick, valuable thoughts about retail…

For Retailers, analytics tools – I think about reporting and BI applications, “Big Data”, etc. – are vital, priceless, competitive assets that allow answering the following fundamental questions:

  • What types of shoppers are visiting my stores?
  • What did catch their attention on the shop-floor?
  • What did they purchase in-store?
  • How many of them are repeat visitors?
  • Whom did they engage with? About what?
  • …and so on…

Now more than ever, Retail is moving from being a mainly instinct-based industry towards being more Continue reading