connected futures podcast: paving the way for the future of retail, part 1
TRANSCRIPT
“We surveyed 117 retailers in 12 different countries around the world. We also
surveyed executives in other industries and we found that retail ranked number three out of those 12 industries in terms of its ripeness for digital disruption and I think
there are numbers of factors in the investment in new disruptive technologies
that are really changing the game for everyone.”
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- Shaun Kirby, Chief Technology Officer of Cisco Consulting Services
“The reality is that more than 50% of all your sales across the retail categories are already being
influenced by digital in these changes in consumer behavior that are
fundamentally changing how people shop.’”
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- Jason Goldberg, Sr. Vice President of Commerce & Content at Razorfish
“I do think we’re only seeing that tip of the iceberg. However, it does feel like the
effects of digital disruption are more over in retail than some other business segments.
So, the stats are always shocking to me that there’s that higher percentage of
executives that don’t feel like digital disruption is in their critical path… but in
retail in particular.”
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- Jason Goldberg, Sr. Vice President of Commerce & Content at Razorfish
“You just look at the landscape and you say… ‘the largest retailer in the
world is Alibaba… Alibaba passed Walmart in gross revenue dollars for
the last quarter.’”
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- Jason Goldberg, Sr. Vice President of Commerce & Content at Razorfish
“Amazon is the fastest growing company in the history of the United States. They are a pure digital retailer. Every other retailer, all
of the primary brick and mortar retailers, they're generally thrilled to get 2% or 3%
growth out of their traditional channels, and the average growth is 16% in the digital
channel. We’re seeing that the high performers
are growing it 30%...”
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- Jason Goldberg, Sr. Vice President of Commerce & Content at Razorfish
“What’s really exciting is, still, we believe a lot of value is being left on the table. If we took, for example, a prototypical 20 billion dollar revenue retailer, let’s say with 900 stores, we did some modeling and with an estimated revenue of just under a billion annually, they're most likely only getting about 15% of that digital value stake. So they could improve their margins by over
800 million or improve their earnings before interest
in tax by almost 60%.”
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- Shaun Kirby, Chief Technology Officer of Cisco Consulting Services
“And it’s particularly ironic in light of every other trend, it’s really challenging those operating margins and constantly taking
out the system at every turn. So, your retail is difficult business. It’s a nice fight and you need to capture every ounce of margin that
you possibly can.”
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- Jason Goldberg, Sr. Vice President of Commerce & Content at Razorfish
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