Retail/channel management = place – getting the product to consumers – involved relations
between brand and retail – complicated and changing
Marketing channel = path to the consumer
- Set of organizations
- Working together
- Make food foods available
- For end users
What is happening in the middle companies
Single largest company in the word = Amazon
Can be deceiving that little looking companies with small prices are big companies in comparison
Revenues of biggest compared to sm..
Access to consumers = power
Whoever controls the store floor has this power to observe
➢ There has been a power shift from manufacturers to retailers
What is the state of retailing?
➢ Shops are closing massively
➢ Store networks have been rightsized at pace
Some retailers will be more and some less affected
➢ Unexpected bad: Amazon – layoffs, rethinking investments, closing stores
➢ Opportunity in helping them out in overcoming their issues
,Confusing retail times
We are talking vertical relationship – retailers and someone in between down in the stream – not
with a direct competitor
The retail apocalypse….
Cause: the internet, Amazon
The pandemic only made it worse
How is this changing the game? What is going on?
The % of retail sales occurring online – worldwide 19% - so could this really be the cause of massive
onslaught -
Why did ecommerce disrupt? – business model behind it – selection disrupted the one – assortment
size/selection – create endless aisles
Economies of scales and scope – prices down – customer experience up etc…
This is the model behind ecommerce
Creating a different consideration set for consumers – enormous amount of brand at amazon so you
can find almost everything there
➢ Pricing
▪ Moving towards individual pricing!! (based on visits etc.)
▪ Pricing algorithm compares the lowest prices across the retail sector for
particular products – including those retailers selling in bulk and where
membership costs are needed
➢ Fulfillment
▪ Minimal effort, products being brought to you
▪ Becomes more complex because what is the point of being a retailer still
▪ Network of Distribution Centers (DSs)
▪ Guarantees free delivery in a few days
, e-commerce fundamentally changed consumers in the way they think and what is acceptable – we
want everything, anytime, without effort, at the lowest costs and zero willingness to pay – that
killed everything
➢ Result is difficult and extremely expensive last mile – lost all classic advantages there
➢ Fulfillment is Amazon’s fastest growing expense area
Is ‘Etail’ unsustainable? – weakness & new layer of competition and new type of thinking – delivery
and fulfillment is leading to unsustainable costs
Rethink the way we set up our operations – give them more than stores – give them story
experience
➢ Stores to the rescue with cutting costs and adding convenience
➢ Walmart sees store estate as key for successful e-commerce fulfillment
➢ Network of stores can act as distribution centers – store personnel pulls from assortment –
allows for faster delivery – allows for instore pick up & returns
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper TISEMstudent. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €8,99. Je zit daarna nergens aan vast.
