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Digital Marketing: Distribution and Retailing Issues

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Issues related to technology and retailing. Alibaba versus Amazon. Disruption, channel conflict, omnichannel issues and more.

Published in: Marketing, Education, Business
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Digital Marketing: Distribution and Retailing Issues

  1. 1. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Online Retail Disintermediation: • Print media • Retail – Music – Books – Travel – Banking – Autos (Tesla ? Digital Marketing alexbr.brown@gmail.com University of Delaware
  2. 2. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Online Retail Disruptors: • Amazon, 1995 • eBay, 1995 • Craigslist, 1995 • Netflix, 1997 • Napster, 1999 Digital Marketing alexbr.brown@gmail.com University of Delaware
  3. 3. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Online Retail Disruptors: • iTunes, 2000 • Orbitz, 2001 • YouTube, 2005 • Walmart • Apple • Uber / Airbnb • Tesla Digital Marketing alexbr.brown@gmail.com University of Delaware
  4. 4. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Online Retail Stores Closing: • Staples • Barnes & Noble • Sears • RadioShack • Borders • Circuit City Digital Marketing alexbr.brown@gmail.com University of Delaware
  5. 5. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Online Retail % Shifted online by category: • Computers, Electronics, Appliances: 25% • Books, Magazines, Music: 19% • Toys, Sporting Goods: 12% • Clothing: 11% Digital Marketing alexbr.brown@gmail.com University of Delaware
  6. 6. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Online Retail % Shifted online by category: Food • Complexity: Fresh, Frozen, Chilled, Low Margin • Webvan • Peapod • Amazon Fresh • UK, Korea: Tesco Digital Marketing alexbr.brown@gmail.com University of Delaware
  7. 7. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Online Retail Two Global Online Giants: Amazon: • 1994 • Dominates North America and … • Mature retail landscape • NA Competition: eBay, Traditional Retail • China: 10 year presence (joyo.com) Digital Marketing alexbr.brown@gmail.com University of Delaware
  8. 8. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Online Retail Two Global Online Giants: Alibaba: • 1998 • Toabao, Tmall, Alipay and … • Dominates China • Leapfrogging traditional retail development • Business model: ad revenue & subscriptions Digital Marketing alexbr.brown@gmail.com University of Delaware
  9. 9. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Online Retail Two Global Online Giants: Alibaba: • Numbers: – Larger than Amazon & eBay combined – 60% parcels delivered in China – 70-80% of China e-commerce (>600m China Internet) • China Competition: Tencent, Traditional Retail • China e-commerce to grow: $650bn by 2020 • US: 11 Main Street … • 2014 US IPO: 11main.com Digital Marketing alexbr.brown@gmail.com University of Delaware
  10. 10. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Online Retail Two Global Online Giants: 2013 Revenue: • Alibaba, $160 billion (#2 retailer globally) • Amazon, $75 billion (about #15 retailer globally) • By comparison – Walmart: $476 billion (#1 retailer globally) – eBay: $16 billion Digital Marketing alexbr.brown@gmail.com University of Delaware
  11. 11. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Online Retail From PC to mobile: • Location data • Increased ubiquity • Second wave of disruption (Uber) • Smart store (iBeacon etc) – 1 disrupted – 2 omni-channel (Macy’s: react) – 3 smart-store (Macy’s: proactive use) Digital Marketing alexbr.brown@gmail.com University of Delaware
  12. 12. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Traditional Retail • Smart store – In store signage • Burberry, Nordstrom, Kate Spade • Macy’s – Mobile app • Store-fronts for online Brands – Amazon etc. Digital Marketing alexbr.brown@gmail.com University of Delaware
  13. 13. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Online Retail Platforms, Marketplaces: • Amazon Marketplace – 85m mau, Fulfillment • Alibaba • Ebay – Not competing w/ Ebay • Etsy – Arts/Crafts – Smaller marketplace • Craigslist ? Digital Marketing alexbr.brown@gmail.com University of Delaware
  14. 14. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Online Retail Platforms: • Ad Platforms: ex: Google: Product Ads / Google Shopping • E-commerce Platforms, Ex: Shopify – 70k retailers – Monthly fee – Apps extend functionality • Alibaba – 11main.com Digital Marketing alexbr.brown@gmail.com University of Delaware
  15. 15. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Online Retail Platforms: • Apple iStore • Google Play Store • Own site – Build own, or outsource (Shopify?) • Cloud / SaaS solutions Digital Marketing alexbr.brown@gmail.com University of Delaware
  16. 16. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Shorter Channels • Direct to Consumer • Consumer to Consumer • Channel Conflict • Omnichannel (Macy’s) Digital Marketing alexbr.brown@gmail.com University of Delaware
  17. 17. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Shorter Channels • Cannibalization • Showrooming (Best Buy) • Reverse Showrooming (Amazon) – Zero variable cost to Amazon • The Last Mile – Drone delivery ? Digital Marketing alexbr.brown@gmail.com University of Delaware
  18. 18. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Smarter Channels • Big Data • Robots – Amazon’s Kiva Systems • RFID • EDI Digital Marketing alexbr.brown@gmail.com University of Delaware
  19. 19. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Smarter Channels • Extranets • B2B Exchanges • Cloud Computing Digital Marketing alexbr.brown@gmail.com University of Delaware
  20. 20. #buad477 follow @alexbrownracing http://www.udel.edu/alex/classes Distribution: Smarter Channels • Offshoring – Apple, China – Fashion, Bangladesh • Outsourcing – Customer service, India • Fedex and UPS (Logistics) • 3D Printing ? Digital Marketing alexbr.brown@gmail.com University of Delaware

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