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How Retailers Can Survive Being Amazon’ed
July 19, 2017
©2017 Mirakl, Inc.
Agenda
● Welcome
● House keeping
● Introductions
● Sessions:
○ Sucharita Mulpuru – How to Survive Being Amazon’ed
○ Adrien Nussenbaum – How Mirakl Can Help
● Q&A
©2017 Mirakl, Inc.
House keeping
Audio Issues?
● Line will remain silent until 11am ET
● Reach out to @Mirkal Marketing in chat
○ Dial-in or computer audio available
Q&A?
● Please submit questions via “Questions” tab on
GoToWebinar
● All questions will be answered at the end
Slides and Recording
● Slides and Recording will be available and sent via email
within 48 hours
Be Social
● We’ll be live tweeting! Interact with us and tag @mirakl &
use the hashtag #fightamazon
©2017 Mirakl, Inc.
Speakers
Sucharita Mulpuru Adrien Nussenbaum
Retail Industry Analyst CEO, Mirakl
How Retailers Can
Survive Being
Amazon’edSucharita Mulpuru
Former Forrester VP & Principal Analyst (Retail)
1. How customer experience expectations have changed in Amazon’s favor
2. Emerging opportunities to compete against Amazon
3. Choosing the right investments that deliver near-term results
Agenda
How customer experience
expectations have changed in
Amazon’s favor
1. Marketplaces as a service
2. Radical transparency
3. Even more value for money
4. Continuous partial attention
5. Service as a service
6. Shopper self-direction
7. Co-creation with customers
The customer experience is
changing in many ways
Setting the bar
Marketplaces are ubiquitous and growing
Evolving the experience for retail
Radical
transparency
is an
opportunity
Source: Narvar
Information transparency forces
even more value for money
Be prepared for continuous partial
attention
Distributed commerce is an attempt to
address this, but it’s not very good yet
1. Your data
2. Their ingestion of your data
3. Their presentation
4. Consumer comfort and familiarity
Buried shopping link
Missing key information
Service as a
service is
growing
Companies will
explore clever
uses of real
estate
“One great person
can easily do the
business productivity
of three good
people.”
Kip Tindell | CEO Container Store
Emerging Opportunities to
Compete Against Amazon
In the midst of all this, it’s
easy to get distracted
Most of these are hyped technologies
which won’t affect retail in the near term
VR/AR
• Best use cases are in gaming
• Possibilities for simulation training but quality of content is not true to life
Drones
• Regulation for commercial delivery unclear
• Infrastructure needed for receivers, not only senders
Driverless cars
• Promising but still years away from mass adoption
• Greatest near-term benefit for commercial trucking
• Replacement cycles for cars are getting longer not shorter
• eCommerce deliveries still need a human or robotics to manage final steps
Wearables
• Use cases are often limited and adoption has been modest to date because they rarely replace or are
superior to phones (yet)
• Certain health benefits are promising (e.g., monitoring heartrate, other vital signs)
IoT/sensors • Promising possibilities for managing inventory and store assets and associates but ROI is unproven
Choosing the right
investments for survival -
today
Marketplaces address all of these trends
Trend How marketplaces now are addressing CX changes Marketplace examples
Ubiquity of marketplaces
Lowers barriers to entry for small merchants; lowers search costs for
buyers
Farfetch; Airbnb; Etsy
Radical transparency Ratings, individual prices, location-based details Uber; Lyst
More for less Choice gives shoppers inexpensive options Amazon; eBay
Continuous partial
attention
One-stop shopping; frictionless buying Amazon; eBay
Services as a retail
adjacency
On-demand solutions for shopper needs Taskrabbit; Styleseat
Marketplaces are powerful
They provide enormous
choice for consumers
They can create a superior
experience for consumers
They are pure capitalism with
(when web-enabled) minimal
information search costs
They can be very profitable for
the provider of the marketplace
Retail will be significantly
different as a result of
marketplaces
• There will be fewer monobrands; mature vertically-
integrated brands will need to integrate products
from other companies and brands
• “Open to buys” will be irrelevant in the future
• Merchants will still need to edit assortments but will
have fewer constraints; there are over 200MM
items in retail and virtually nothing sold online will
need to be purchased as inventory
• New functions will emerge which will be cost centers
(e.g., photography for creative consistency,
copywriters, customer service, data and insights
teams)
• Margins for brands and manufacturers will go down
as “merchant princes” disappear and the best
products thrive; investment in innovation becomes an
imperative
• Store associates will need to be much more versatile
as physical stores will need to be more creative
managers of their physical space to survive
How Mirakl Can Help
July 19, 2017
Offer more. Learn more. Sell more.
©2017 Mirakl, Inc.
Marketplaces
are changing
the world…
©2017 Mirakl, Inc.
…remarkably
fast
93 years to build
610,000 rooms
88 countries
4 years to amass
650,000 rooms
192 countries
©2017 Mirakl, Inc.
Retail needs to
stop being
in denial
The Extraordinary Size of Amazon in One Chart
Amazon is bigger than most brick and mortar retailers put together
Market value as of December 30, 2016
$355.9B
$297.8B
©2017 Mirakl, Inc.
Amazon’s
Marketplace is
fueling their
success
Marketplace sellers drive the majority of Sales
Third party sales make up 75% of Amazon’s sales
©2017 Mirakl, Inc.
It’s time to launch your marketplace now
“We grew our product assortment
5X in the first year.”
Régis Schultz
CEO
Offer More
Get new products in your
customers hands faster.
“The online marketplace sales impacted
10% of our online revenue in the first year.”
Nicolas Houzé
CEO, Galeries Lafayette
Sell More
Exceed customer expectations and never
miss a sale.
“Best Buy CA Is now the top provider
of baby products online in Canada.”
Thierry Hay-Sabourin
VP, eCommerce - Best Buy Canada
Learn More
Free merchandising R&D to expand
your brand footprint.
©2017 Mirakl, Inc.
“What Mirakl doesn’t know
about Marketplaces isn’t worth
knowing. Mirakl is becoming the
standard for all retailers.”
Unparalleled
Expertise 
Nina Morris
Marketplace Director
100+
Customers 
Proven
Technology 
“Mirakl’s technology and
people made them the obvious
choice for an iconic brand like
HPE.”
Martin Rhode
VP E-commerce
Mirakl is the
leading
marketplace
platform
provider
©2017 Mirakl, Inc.
A Marketplace
is a “win-win-
win” scenario
Your Customers
Gain a better total offer,
more competitive prices
You
Improve your offer, increase sales
volume, and increase profitability
Your Partners
Gain brand visibility,
increase sales
QUESTIONS?
Thank You

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How Retailers Can Survive Getting Amazon'ed

  • 1. How Retailers Can Survive Being Amazon’ed July 19, 2017
  • 2. ©2017 Mirakl, Inc. Agenda ● Welcome ● House keeping ● Introductions ● Sessions: ○ Sucharita Mulpuru – How to Survive Being Amazon’ed ○ Adrien Nussenbaum – How Mirakl Can Help ● Q&A
  • 3. ©2017 Mirakl, Inc. House keeping Audio Issues? ● Line will remain silent until 11am ET ● Reach out to @Mirkal Marketing in chat ○ Dial-in or computer audio available Q&A? ● Please submit questions via “Questions” tab on GoToWebinar ● All questions will be answered at the end Slides and Recording ● Slides and Recording will be available and sent via email within 48 hours Be Social ● We’ll be live tweeting! Interact with us and tag @mirakl & use the hashtag #fightamazon
  • 4. ©2017 Mirakl, Inc. Speakers Sucharita Mulpuru Adrien Nussenbaum Retail Industry Analyst CEO, Mirakl
  • 5. How Retailers Can Survive Being Amazon’edSucharita Mulpuru Former Forrester VP & Principal Analyst (Retail)
  • 6. 1. How customer experience expectations have changed in Amazon’s favor 2. Emerging opportunities to compete against Amazon 3. Choosing the right investments that deliver near-term results Agenda
  • 7. How customer experience expectations have changed in Amazon’s favor
  • 8. 1. Marketplaces as a service 2. Radical transparency 3. Even more value for money 4. Continuous partial attention 5. Service as a service 6. Shopper self-direction 7. Co-creation with customers The customer experience is changing in many ways
  • 9. Setting the bar Marketplaces are ubiquitous and growing Evolving the experience for retail
  • 12. Information transparency forces even more value for money
  • 13. Be prepared for continuous partial attention
  • 14. Distributed commerce is an attempt to address this, but it’s not very good yet 1. Your data 2. Their ingestion of your data 3. Their presentation 4. Consumer comfort and familiarity Buried shopping link Missing key information
  • 15. Service as a service is growing
  • 16.
  • 18. “One great person can easily do the business productivity of three good people.” Kip Tindell | CEO Container Store
  • 20. In the midst of all this, it’s easy to get distracted
  • 21. Most of these are hyped technologies which won’t affect retail in the near term VR/AR • Best use cases are in gaming • Possibilities for simulation training but quality of content is not true to life Drones • Regulation for commercial delivery unclear • Infrastructure needed for receivers, not only senders Driverless cars • Promising but still years away from mass adoption • Greatest near-term benefit for commercial trucking • Replacement cycles for cars are getting longer not shorter • eCommerce deliveries still need a human or robotics to manage final steps Wearables • Use cases are often limited and adoption has been modest to date because they rarely replace or are superior to phones (yet) • Certain health benefits are promising (e.g., monitoring heartrate, other vital signs) IoT/sensors • Promising possibilities for managing inventory and store assets and associates but ROI is unproven
  • 22. Choosing the right investments for survival - today
  • 23. Marketplaces address all of these trends Trend How marketplaces now are addressing CX changes Marketplace examples Ubiquity of marketplaces Lowers barriers to entry for small merchants; lowers search costs for buyers Farfetch; Airbnb; Etsy Radical transparency Ratings, individual prices, location-based details Uber; Lyst More for less Choice gives shoppers inexpensive options Amazon; eBay Continuous partial attention One-stop shopping; frictionless buying Amazon; eBay Services as a retail adjacency On-demand solutions for shopper needs Taskrabbit; Styleseat
  • 24. Marketplaces are powerful They provide enormous choice for consumers They can create a superior experience for consumers They are pure capitalism with (when web-enabled) minimal information search costs They can be very profitable for the provider of the marketplace
  • 25. Retail will be significantly different as a result of marketplaces • There will be fewer monobrands; mature vertically- integrated brands will need to integrate products from other companies and brands • “Open to buys” will be irrelevant in the future • Merchants will still need to edit assortments but will have fewer constraints; there are over 200MM items in retail and virtually nothing sold online will need to be purchased as inventory • New functions will emerge which will be cost centers (e.g., photography for creative consistency, copywriters, customer service, data and insights teams) • Margins for brands and manufacturers will go down as “merchant princes” disappear and the best products thrive; investment in innovation becomes an imperative • Store associates will need to be much more versatile as physical stores will need to be more creative managers of their physical space to survive
  • 26. How Mirakl Can Help July 19, 2017
  • 27. Offer more. Learn more. Sell more.
  • 28. ©2017 Mirakl, Inc. Marketplaces are changing the world…
  • 29. ©2017 Mirakl, Inc. …remarkably fast 93 years to build 610,000 rooms 88 countries 4 years to amass 650,000 rooms 192 countries
  • 30. ©2017 Mirakl, Inc. Retail needs to stop being in denial The Extraordinary Size of Amazon in One Chart Amazon is bigger than most brick and mortar retailers put together Market value as of December 30, 2016 $355.9B $297.8B
  • 31. ©2017 Mirakl, Inc. Amazon’s Marketplace is fueling their success Marketplace sellers drive the majority of Sales Third party sales make up 75% of Amazon’s sales
  • 32. ©2017 Mirakl, Inc. It’s time to launch your marketplace now “We grew our product assortment 5X in the first year.” Régis Schultz CEO Offer More Get new products in your customers hands faster. “The online marketplace sales impacted 10% of our online revenue in the first year.” Nicolas Houzé CEO, Galeries Lafayette Sell More Exceed customer expectations and never miss a sale. “Best Buy CA Is now the top provider of baby products online in Canada.” Thierry Hay-Sabourin VP, eCommerce - Best Buy Canada Learn More Free merchandising R&D to expand your brand footprint.
  • 33. ©2017 Mirakl, Inc. “What Mirakl doesn’t know about Marketplaces isn’t worth knowing. Mirakl is becoming the standard for all retailers.” Unparalleled Expertise  Nina Morris Marketplace Director 100+ Customers  Proven Technology  “Mirakl’s technology and people made them the obvious choice for an iconic brand like HPE.” Martin Rhode VP E-commerce Mirakl is the leading marketplace platform provider
  • 34. ©2017 Mirakl, Inc. A Marketplace is a “win-win- win” scenario Your Customers Gain a better total offer, more competitive prices You Improve your offer, increase sales volume, and increase profitability Your Partners Gain brand visibility, increase sales

Editor's Notes

  1. So I got here with an Uber, I’m staying at AirBnB, etc. They are all Marketpalces.
  2. So I got here with an Uber, I’m staying at AirBnB, etc. They are all Marketpalces.
  3. Question: Either we put the 3 leaders or the next slide or both as a way to show that it’s spreading
  4. http://www.visualcapitalist.com/extraordinary-size-amazon-one-chart/?utm_source=twitter&utm_medium=social&utm_campaign=SocialWarfare
  5. http://www.visualcapitalist.com/extraordinary-size-amazon-one-chart/?utm_source=twitter&utm_medium=social&utm_campaign=SocialWarfare
  6. Offer More Quickly expand your product selection by bringing 3rd party seller products onto your site. They sell, ship, and service their products. You take a commission on marketplace sales. Learn More With increased offer, attract new buyers & more share of wallet from current to learn what your customers actually want. Bring those products in-store or into owned inventory. Sell More Increase offer and price competitiveness with many sellers. Increase transaction volume online. Train store employees to use the marketplace for endless aisle.
  7. A revolution is on the way || ongoing. Like every revolution, it can drive tremendous incremental growth, both in customers and in revenues. And like every revolution, the ones who will embrace it will benefit, and gain an important lead. But unlike most revolutions, it doesn’t have to be painful or brutal, because Mirakl is here to help power your digital, organizational & business transformation.