Showing posts with label michael parekh. Show all posts
Showing posts with label michael parekh. Show all posts

Wednesday, June 04, 2014

Quality Video Will Keep Fetching Top Dollars



The Internet will not make the Television go away. They will merge. And quality content will keep making money. It can be argued, more money. It is harder to make a top quality 30 minute video clip than it is to take one great photo. There is still a barrier to entry, but the barrier is lower, and so more high quality content gets in.
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Friday, March 07, 2014

Shake That Thing: Does Amazon Have No Limits?







The Atlantic: RadioShack Is Doomed (and So Is Retail)
RadioShack's long slide coincides the steep ascendance of Amazon as America's great brick-and-mortar destroyer. In 2003, Amazon and RadioShack each had about $5 billion in sales, as WSJ business editor Dennis Berman pointed out. Last year, Amazon had $75 billion to RadioShack's $3.5 billion. ....... At the end of 2013, RadioShack had 5,000 brick-and-mortar stores with 27,500 employees and $3.5 billion in sales, which is $127,000 in sales per employee. Its website is the 1,066th most popular in the world. At the end of 2013, Amazon had zero brick-and-mortar stores with 117,300 employees (full- and part-time) and $75 billion in sales, which is $640,000 in sales per employee. Its website is the 5th most popular in the world. ..... The company's biggest sales category is the wireless market, and that's some of the worst news for RadioShack. “The mobile phones category was very weak, and mall traffic is very weak,” analyst David Schick said. “The majority of folks have their mobile phones. We are past adoption.” ...... the confluence of e-retail and increasingly efficient global sourcing and stocking (i.e.: the Amazon & Wal-Mart Effect) would eventually gut retail employment ...... With $600,000 in sales per employee, Amazon is 3X-4X more efficient than the stores it's eating.

Does Amazon.com have no limits? It does. It has severe limits. (1) It is not even attempting to do High Touch. Health and education are all about High Touch, it seems. That same principle can be applied to traditional retail. (2) You can piggyback on Amazon infrastructure and do retail. You can use their warehouses.

Stores like RadioShack do have the option to rise from the ashes. But I doubt they will. The rethink that is required, I don't think they will go for it. RadioShack is like the New York Times. It has taken a Huffington Post to "get" digital. News is not going away. Neither is retail. If anything it is getting bigger than ever. RadioShack has to move from being a poorly stocked itty bitty warehouse to being an experience.





Amazon lockers are one step beyond delivery by van. It is a little more High Touch, but not all the way still.

BusinessWeek: Do Amazon's Lockers Help Retailers? Depends on What They Sell
The incentive for any business hosting an Amazon locker isn’t the monthly stipend the online retailer pays—”not even worth it,” says the manager of a Manhattan copy shop—but the lure of higher store traffic given the online retailer’s enormous sales volume and the gazillions of brown boxes sent across the nation each day...... many people who can’t reliably get their online purchases at work or at home ..... Coffee shops, parking garages, supermarkets, pharmacies, and copy-printing stores don’t have Amazon as a rival, whereas a retailer such as Staples will quickly realize that Amazon sells virtually everything it does—and possibly cheaper. ...... one reason 7-Eleven, home of the microwave burrito and gargantuan Slurpee—neither sold fresh by Amazon—seems to like its lockers just fine. (You can purchase a $24.99, 7-Eleven-branded Slurpee Maker machine on the site, however.) .... Bonhomme says his copy shop’s traffic has gradually picked up over the six months that the business has had a locker.
Disney Bets $1 Billion on Technology to Track Theme-Park Visitors
Walt Disney’s (DIS) $1 billion experiment in crowd control, data collection, and wearable technology that could change the way people play—and spend—at the Most Magical Place on Earth. ..... If the system works, it could be copied not only by other theme parks but also by museums, zoos, airports, and malls. ...... MyMagic+ promises far more radical change. It’s a sweeping reservation and ride planning system that allows for bookings months in advance on a website or smartphone app. Bracelets called MagicBands, which link electronically to an encrypted database of visitor information, serve as admission tickets, hotel keys, and credit or debit cards; a tap against a sensor pays for food or trinkets. The bands have radio frequency identification (RFID) chips—which critics derisively call spychips because of their ability to monitor people and things. ..... Disney’s $14.1 billion theme park and resort business. ...... “a more immersive, more seamless, and more personal experience”—allowing Disney employees to address a child by name, for example, or wish someone a happy birthday. “The implications for big data and for personalization are extraordinary,” says Quinby. “It could radically change interaction between customers and the company.”
Apple's Location-Tracking iBeacon Is Poised for Use in Retail Sales
a new technology called iBeacon that can pinpoint your location to within a few feet. ...... Prior to iBeacon, iPhones and other Apple mobile devices relied on GPS and Wi-Fi tower triangulation to track their location. Those are great technologies and remain part of iOS, but they’re only precise within 30 feet or so. That’s fine if you’re walking into an airport; iOS Passbook users already see their boarding pass pop up when they arrive at their terminal. GPS and Wi-Fi are less useful in smaller spaces such as stores. IBeacon can nail down device location more precisely because it uses Bluetooth Low Energy, a new version of the ubiquitous wireless standard. ...... Bluetooth LE can run constantly, announcing your phone’s presence to nearby devices with the short-distance accuracy of a conventional Bluetooth at little cost to battery life. ........ IBeacon’s range is about 84,000 square feet, Gottipati says. A typical Macy’s store of 175,000 square feet would need two or three iBeacon transmitters. Third-party manufacturers such as Estimote sell a three-pack for $99 ...... That’s another advantage iBeacon has over NFC: It’s not just a payment system. “There are opportunities for marketing and selling that don’t play in the NFC world”
Dell's Pitch: You Can't All Use Amazon Why Amazon Is on a Warehouse Building Spree
For a company whose showrooms are all online, Amazon.com (AMZN) spends a staggering amount on bricks and mortar. The e-commerce giant has invested roughly $13.9 billion since 2010 to build 50 new warehouses, more than it had cumulatively spent on storage facilities since its 1994 founding, bringing the total to 89 at the end of 2012. ..... Software that can sort items by delivery date and optimize storage space has helped Amazon roughly double the number of items it can ship per facility, says Clark. The warehouses are operational within 10 months, down from two years before the building spree started. ..... as the company adds 5,000 full-time jobs in 17 U.S. warehouses to its 20,000 existing employees, along with 2,000 customer service workers ...... Upstarts such as online grocery deliverer Instacart are moving in the opposite direction. “We don’t have to build warehouses, lease a fleet of trucks, or manage perishable inventory,” says Instacart Chief Executive Officer Apoorva Mehta, a former Amazon employee. Unlike AmazonFresh, which ships groceries in Seattle and Los Angeles, Mehta’s San Francisco-based startup guarantees delivery in less than two hours, using contract shoppers who drive their own cars to customers. ..... Since the start of 2010 the company’s stock has more than doubled.
To Tout Good Jobs, Visit Main Street, Not Amazon

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