Download - THE FUTURE OF RETAIL: 2014
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THE FUTURE OF RETAIL: 2014
BI Intelligence
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Is This How People Really Like To Shop?
Image: Reuters
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Or This?
Images: Kim Bhasin / Business Insider
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Let’s Face It — The Old Retail Model Is Dying
Image: Brian Sozzi / Belus Capital Advisors
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Fast
Image: Nicholas Eckhart
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Hundreds Of Retail Stores Are Closing
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Because Store Sales Are Tanking
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Holiday Quarters Have Been Terrible For Physical Retail
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Where Are Shoppers Going?
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Online!
We Are Here
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“We’re in the midst of a profound structural shift from physical to digital retail ... it’s happening faster than I could
have imagined. ”
— Jeff Jordan, partner at Andreessen Horowitz, January 2014
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E-Commerce Is Driving Nearly All Retail Growth In US
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1 In 20 Retail Dollars Are Already Online
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Mobile Is Also Gaining Fast
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‘New Retail’ Is Nearly Equal To Old Guard In Market Value
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Venture Capital Is Cashing In
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Amazon Continues Growing Very Quickly
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But Other Retailers Are Also Growing Online Sales
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The Signs Are Clear —E-Commerce Is Booming.
Shippers Were Overwhelmed By The Massive Volume Of E-Commerce Orders Over Christmas 2013
Images, Right: Reuters
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The Top Categories — Electronics, Media, Clothing
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Let’s Look At Some Of The Retail Categories Individually
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ELECTRONICS
Image: Reuters
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Best Buy Is Vulnerable. 85% Of Sales From Electronics.
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Best Buy Offline Sales Plummeted 15% Last Year
BI Intelligence Estimate
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All Of Best Buy’s Growth Is OnlineBI Intelligence Estimate
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Amazon Was Once Smaller Than Best Buy. Not Anymore.
Amazon Already 1.7X Best Buy
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MEDIA
Image: Reuters
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Media Is Still The Top E-Commerce Category ~$25 Billion
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Amazon Got Started With Media SalesAmazon Is Now ~14% Of All E-Commerce
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Media Sales Are Going Digital
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Benefiting Apple And Amazon
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CLOTHING AND ACCESSORIES
Image: Reuters
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More Than 13% Of All Clothing Sales Now Occur Online
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J.C. Penney Is Vulnerable. 83% Of Its Business Is Clothing And Accessories.
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In-Store Sales At J.C. Penney Declined 10% Last Year
BI Intelligence Estimate
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Online Is Growing, But Overall J.C. Penney Still In The Red
BI Intelligence Estimate
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Gap Has Done BetterBI Intelligence Estimates
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16% Of The Gap’s Total Retail Sales Are Now Online
BI Intelligence Estimates
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HOME AND FURNITURE
Image: Reuters
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15% Of All Furniture Sales Now Occur Online
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Helping Fuel The Rise Of Home Goods Online Retailers
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FOOD AND BEVERAGE
Image: Reuters
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For Groceries, Online Sales Are Still A Blip
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Despite The Early Efforts Of Amazon And Others
Image: Reuters
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What About The ‘Everything Retailer,’ Wal-Mart?
Image: Reuters
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Some Perspective. Wal-Mart Is Still Much Bigger
Than Amazon.
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Wal-Mart’s Advantage Is Still In Physical Retail
Wal-Mart still has 4,100 stores within five miles of two-thirds of the U.S. population —
The Wall Street Journal, October 2013
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Online Is Still Just 2% Of Walmart’s Total Sales
BI Intelligence Estimates
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But Sales Growth Is Coming From OnlineBI Intelligence Estimates
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And Walmart Is Investing In Social And Mobile Tech R&D
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Retail Is About Offering People The Services And Products They Want — On The Devices And Media They
Use
Image: Amazon
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The Web
52% of all retail sales are Web-influenced
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Smartphones And Tablets
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Especially iPhones And iPads. ~75% Of Traffic.
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Mobile Is Now ¼ Of All E-Commerce Traffic …
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Retailers Are Finding Huge Audiences On Mobile …
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… And On Social Networks
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What Do Today’s Customers Want?
Image: Amazon
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They Want Price And Convenience
Convenience
Price
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And They Want Individualized Services And Offers
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They Want To Buy Things On Mobile! PayPal Does
~$30 Billion In Mobile Transactions
PayPal purchased Braintree in late 2013.
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Starbucks Payments App Does It All
Images: Starbucks And Square
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Which Is Why It Is So Successful: $1 Billion In Annual Volume!
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The Shift To Online Retail Is Global
Image: Reuters
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Alibaba Drives $157 Billion In Gross Merchandise Value
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China’s JD.Com Saw Sales Boom Last Year
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Mobile Will Account Of 15% Of Chinese E-Commerce Sales
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E-Commerce Is Taking Off In India, Too
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