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Question #12

Question #12. How many Internet users are purchasing online? 55% (77% browsed/shopped) Vs. 51% and (75%) last year. Question #13. What is the main advantage of being a pure-play e-tailer? Focused and nimble What is the main advantage of being a multichannel e-tailer? Brand name Synergies.

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Question #12

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  1. Question #12 • How many Internet users are purchasing online? • 55% (77% browsed/shopped) • Vs. 51% and (75%) last year

  2. Question #13 • What is the main advantage of being a pure-play e-tailer? • Focused and nimble • What is the main advantage of being a multichannel e-tailer? • Brand name • Synergies

  3. What has Amazon done right? • Amazon simplifies shopping • Equity built with consumers is saving Amazon with investors • Selection, competitive prices • Ease of navigating site/convenience • Delivery speed and options • Partnerships

  4. Multi-Channel Integration • Watch video tape • What are the 3 formats discussed? • What are the 3 models of multi-channel integration? • 2 emerging models? • What are the 2 ways multi-channel retailers are structured? • List of group members – IC #6

  5. Achieving Integration • Creating consumer value • Leveraging the multi-channel business model • Developing new revenue streams • Channel synchronization

  6. Consumer Value Proposition

  7. Consumer Value Proposition

  8. Consumer Value Proposition

  9. Leveraging the Multi-Channel Business Model • Leverage existing assets • Overcome channel-specific limitations • Gain insight into cross-channel shopping behavior

  10. Leveraging Existing Assets • Brand name recognition

  11. Leveraging Existing Assets • Brand name recognition • Advertising • Customers • Physical assets • Supply chain capabilities • Service capabilities

  12. Overcoming Channel Specific Limitations • Stores • Space constraints • Inconsistent execution

  13. Overcoming Channel Specific Limitations • Catalogs • High cost

  14. Overcoming Channel Specific Limitations • Catalogs • High cost • Static

  15. Overcoming Channel Specific Limitations • Internet • Lack of visibility • Amazon, wine.com, cooking.com, Mycashmere, Gold Violin launched catalogs

  16. Overcoming Channel Specific Limitations • Internet • Lack of credibility

  17. Gaining Consumer Insight • Capture true demand

  18. Gaining Consumer Insight • Capture true demand • Cross-channel visibility • Customer feedback

  19. Building the Brand

  20. Building the Brand

  21. New Revenue Streams • Intensification • Current market/existing customers • Avon, Tupperware, Walgreens • Extension • Current market/new customers • Eddie Bauer, Sharper Image, Lands’ End – online are new • Victoria’sSecret – men on line

  22. New Revenue Streams • Extension • Current market/new customers • Eddie Bauer, Sharper Image, Lands’ End

  23. New Revenue Streams • Expansion • Current market/new geographic markets • REI-Japan • Diversification • New products, services, solutions • Eddie Bauer – Children’s • Gap - Maternity

  24. Channel Synchronization • Extension of a common brand • Most valuable asset • Associated with lifestyle and customer rather than retail format, channel, geography, etc.

  25. Channel Synchronization • Merchandise consistency • Limited or focused discrepancy across channels

  26. Channel Synchronization • Pricing • Use of flexibility

  27. Channel Synchronization • Pricing • Use of flexibility

  28. Channel Synchronization • Cross Promotion • In-store catalog desk/web kiosk • Pick up catalog in store • Order catalog on line • Retail store locators online/catalogs • Advertising circular available online • In-store signage promoting web site and catalog

  29. Channel Synchronization • Fulfillment • In-store pickup of online goods • Inhouse vs outsourcing • East of returns • Customer Relationship Management • Leverage at all customer touch points • Data management technology

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