When ecommerce dominates, do you compete or collaborate?

By Chris Petersen and Adam Simon

There is a tipping point coming where ecommerce will overtake traditional retail sales. That critical mass is not as far off as many might think. Doug Stephens recently published some interesting forecasts on the growth of ecommerce, particularly the top 3 giants. Based upon the recurring annual growth rates of 12 to 35% for the large ecommerce players:

  • Ecommerce will be 25% of total US retail in 6 years, and may exceed 30% of the UK
  • Amazon, Alibaba and eBay will control 40% of global ecommerce within just 3 years
  • Within just 15 years ecommerce will overtake traditional retail sales accounting for more than 50% share of consumer sales

This is highly relevant in the Middle East with the takeover of Souq.com by Amazon, and the recent price-slashing at the beginning of this month. Other than being swept away by the tidal wave of ecommerce giants, what are the choices for brands, distributors and traditional retailers? Continue reading

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Filed under Market Analysis, omnichannel, Retail

The Future of Retail – An ecosystem of strategic collaboration

By Chris Petersen and Adam Simon

Consumer demands are driving a retail renaissance, not an apocalypse
In reviewing world headlines regarding store closings and retailers filing for bankruptcy, it would be easy to conclude that a retail apocalypse is upon us. If you only look through the retail lens of “stores”, many bricks and mortar store formats are struggling. But through the eyes of today’s consumers, it is no longer a question of shopping stores versus online. Customers simply don’t see “channels”, or separate physical from digital shopping.

Customers expect a seamless experience across time and place, with multiple choices of how and where to acquire their purchase. It is these rising consumer expectations for “real time retail” that are outstripping the capacity of individual retailers, distributors and vendors to independently deliver. The future of retail is quite literally becoming a transformation of the traditional linear supply chain into an ecosystem of strategic collaboration.

Innovations are increasingly the product of strategic collaborations
The e-tail giants of Amazon and Alibaba are increasingly viewed as the great innovators and disruptors of retail. Both have driven innovation focused on customer centric choice, convenience and personalized service which has disrupted traditional stores. However, not all of these innovations are internally driven and executed. Both e-tailers collaborate extensively with vendors and resellers in a “marketplace” in order to expand breadth of assortments, without undo inventory exposure and risks. Amazon has even collaborated with the very traditional US Postal Service in order to gain weekend delivery and capacity, and last week announced a collaboration with Kohl’s for the reception of returned goods.

The wave of strategic collaboration is not limited to ecommerce. In its race against Amazon, Walmart is collaborating with a host of partners for assortment breadth, fresh produce and last mile delivery. Walmart’s newest pilot involves partnering with August Home smart devices to enable a Deliv delivery driver to have one time home access to put the groceries in the refrigerator. A unique aspect of this service is the customer can remotely control and watch the delivery real time on the Wi-Fi web cam. It is too early to tell if customers will opt in for this level of in home service. The crucial point is that this level of differentiated, personalized service would be inconceivable without strategically thinking “outside of the box [store]” on how to collaborate with the right combination of partners who can create and deliver it.

Today’s consumer dynamics drive demands that few can solve alone
Today’s omnichannel consumers are quite literally shopping anytime and everywhere. In addition, their purchase has become a journey across both time and place. Regardless of where the purchase takes place (in home, online or on phone), customers now expect a seamless experience with personalized service on how and where they take delivery. Even the very largest retailer, distributor or vendor does not have enough trucks for the “last mile”.

The new dynamics of executing retail dynamically in real time requires technology, systems, expertise and resources beyond the capacity of a single retailer, distributor or a vendor. There are a host of new “retail” issues driving demand for strategic collaboration:

  • Long tail breadth inventory – Who holds the inventory, where and at what cost?
  • Drop shipments – Are forecasts accurate to enable overnight fulfillment?
  • Inventory “everywhere” – Who owns it and who has the risk if it doesn’t sell?
  • Real time availability – What’s required to show store stock plus virtual options?
  • Customer experience – If more SKUs go online, who owns experience and pays for it?

A new partnership and blog series focused on Strategic Collaboration
Chris Petersen and Adam Simon have collaborated on a host of projects and retail events. As they jointly explored omnichannel and digital transformation of retail, clear patterns began to emerge. Omnichannel is the consumer normal, the execution is inherently expensive. Relatively few retailers or vendors can afford all of the infrastructure, systems and costs associated with inventory and fulfillment. They also discovered that many of the innovative retail breakthroughs are in fact a function of strategic collaboration, which in turn is creating a new ecosystem.

As strategic collaboration evolves as a new ecosystem for retail, there are many more questions than there are answers. Over the course of the next 12 weeks Petersen and Simon will share their findings and discussions with leading vendors, distributors and retailers regarding their views of strategic collaboration, including:

  • What are the best practices and pitfalls of strategic collaboration?
  • What are the parameters and guidelines for collaboration?
  • What do you look for in a strategic partner?
  • What are the criteria and requirements for success?
  • How do you measure results?

This blog series will culminate with a worldwide panel at the ContextWorld CES CEO Breakfast where a global Vendor, Distributor and Retailer will share their perspectives. Please contact us for more details on the event or to register!

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Filed under omnichannel, Retail, Supply Chain

The Rise of the Gaming Monitor

One of the more interesting categories to emerge from CONTEXT’s move into covering more PC Gaming categories is that of the gaming monitor. These tend to contain dynamic refresh rate technology, such as NVIDIA’s proprietary, quality controlled G-Sync or AMD’s royalty free FreeSync. Both of these prevent stuttering and screen tearing by allowing the monitor to render only once a full frame is ready from the GPU, resulting in a much smoother and more enjoyable experience when playing demanding, fast paced games. While initially, G-Sync was the dominant technology, the high costs and stringent requirements imposed by NVIDIA has lead to their technology occupying a relative niche compared to the much more open FreeSync.

As well as adaptive sync, we are also seeing more in the way of UHD (4K) monitors and those with very high refresh rates, although at most affordable price points it is still a case of choosing one or the other. The former now accounts for 14.2% of Q3 monitors while those with more than 144Hz refresh rate now represent 10% of the market, up 81.2% year on year from Q3 2016.

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Yesteryear’s darling, “3D ready” support has remained relatively flat at 12% of monitors sold in Q3 and little sign that demand will rise any time soon but curved displays are increasingly popular, with 24.6% of those sold in Q3 2017 having this feature, compared to 19.6% in Q3 2016 and only 1.8% in Q3 2015.

There have been several interesting advances in display technology over the past few years, which are now comfortably seeing mass adoption in the gaming niche. As one of the most important interfaces between gamers and their games, having the right monitor is clearly seen as key, especially for those hoping to gain a competitive edge over their opponents in the rising field of eSports!

by BB

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Filed under gaming, Market Analysis, Monitors

Smart Home Summit: Assessing the Routes to Market

Was the panel I was on a fix?

  • Tripling smart home revenues from John Lewis partners, according to Katrina Mills, Audio & Connected Home buyer, and the continued investment in dedicated smart home areas, growing to 5 stores by the end of October
  • Doubling revenues at Lightwave, with acceleration driven by the introduction of voice control in the Echo, and with the latest range of Homekit-enabled products, announced by Andrew Pearson, CEO, about to be launched in Apple stores from 3rd October
  • 500,000 Hive thermostats forecast to be sold in 2017, doubling the installed base to one million in the course of this year, and a new range of innovative customer focused solutions announced by Jo Cox, Commercial Director of Centrica
  • O2 steadily growing its pilot stores, with plans to sell smart home in all stores, as presented by Richard Porter, head of smart home products

Continue reading

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Filed under Connectivity, Home automation, IoT, Retail, Smart Technology

Attracting and retaining talent in the Channel

Guest blog by Jessica Hadleigh, Marketing Manager at Thames Distribution Ltd

Last Tuesday, I was lucky enough to be invited to be part of a panel at the new format Channel Live conference, discussing a topic that I am very passionate about; attracting and retaining new talent into the tech channel.

Hosted by Adam Simon, the Global Managing Director of CONTEXT, the panel was truly a wealth of experience that included David Jones, Chief People Officer of Daisy Group, Leon Conway, Co-founder of Channel People, David Pitts, Partner and Founder of Trust Business Partners, and myself.

Our industry is constantly evolving and with every new advancement – technological or otherwise – comes the need for a new skillset to keep our businesses current. Continue reading

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Filed under Enterprise IT, IT Distribution, Market Analysis

7 Critical retail questions requiring new metrics and collaboration

by Chris Petersen, CEO at IMS

At the most basic level, retail is a simple business about selling products for more than the retailer paid for them. Historically, retailing was based upon selling from shops. And even when retailers opened virtual stores online, the core metrics have been most focused on sales, revenue, margin, growth, and market share. In today’s real-time retail marketplace, the customer is now the new POS – Point of Sale. Customers determine where they purchase, how they pay, and where they collect. Retailer, distributor and even vendor systems were not designed to track “flow” to the consumer. Today’s consumer expectations are creating new business questions that will require new data, metrics and benchmarking. Continue reading

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Filed under Big data, Retail

IFA 2017: The Smart Home Comes of Age

CES and MWC may attract the bigger crowds early in the year, but for many, the original and best consumer electronics show remains IFA. The Internationale Funkausstellung Berlin – to give it its full name – has been around for nearly a century, but it can barely have witnessed technological change on quite this scale before. This year VR headsets vied for attention with the usual smartphones, gaming devices, and laptops.

But perhaps the biggest buzz could be found around the smart home, in the proliferation of connected appliances and voice assistant technology, as well as a new agreement behind the scenes designed to drive forward a global market said to be worth over $14bn.

Gadgets galore
As usual, all the major consumer brands were represented this year, from Samsung and Huawei to Sony, Asus, Acer, Panasonic and many more. Smartphone fans were treated to a first look at LG’s high-end V30 device, while Sony unveiled three new models: the Xperia X71, X71 Compact and XA1 Plus. As far as laptops, the Asus 2-in- 1 ZenBook Flip 14, Lenovo’s Yoga 920 ultra-thin notebook, and Acer’s “slimmest ever all-in- on desktop” the Aspire S24 all caught the eye.

VR fans were treated to a major announcement: the introduction of Microsoft’s Windows Mixed Reality headsets, with partners Acer, Asus, Dell, Lenovo and others all showing off their wares. Elsewhere there were new smart watches from Samsung, plenty to keep gaming fans interested, and even new 360-degree digital cameras from Acer.

But it was in the smart home that arguably the most eye-catching kit could be found, as the battle for consumer hearts and minds really begins to heat up. There were plenty of connected appliances on show, from a new Nest thermostat and Hive smart security camera to the Miele Dialog Oven and even a smart floor cleaner from Neato Botvac.

But notably it was in the virtual assistant space that vendors really vied for consumers’ attention, which isn’t surprising given that these platforms will increasingly sit at the centre of the smart home.

That’s why we saw Amazon’s Alexa, Microsoft’s Cortana, Google’s Voice Assistant and Samsung’s Bixby, built into an increasingly wide range of products on show at IFA. Lenovo’s Alexa-powered Home Assistant for the Tab 4 offers an Echo Show experience for a much smaller price tag, for example. There’s also been signs that some players are prepared to work together: Amazon and Microsoft announced that their voice assistants would integrate to allow users to access Windows and Office through Alexa and Amazon sites via Cortana.

Driving smart home success
Behind the scenes was perhaps where the most significant event at IFA 2017 took place, with the signing of a major agreement between three smart home associations in the UK, Germany and France.

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The UK’s Smart Homes & Buildings Association (SH&BA), Germany’s SmartHome Initiative Deutschland e.V. (SHD) and the Fédération Française de Domotique (FFD) represent over 600 OEMs, retailers, distributors, ISVs, integrators, telcos, and energy suppliers. Under the terms of the new agreement, they’ll form a European committee to better coordinate joint activities.

As Global MD for CONTEXT and Chair of the SH&BA, I believe the deal will help the organisations share key knowledge, develop common standards and drive sales. As smart home technologies become increasingly important to us all, that’s great news for the industry, and ultimately consumers.

by AS

 

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Filed under Home automation, IoT, Market Analysis, Mobile technology, Retail, Smart Home