Scott Galloway on the Death of Pure-Play Retail & Impulse Buys
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- Опубліковано 24 жов 2024
- At L2’s members-only “Clicks & Mortar” clinic, NYU Marketing Professor Scott Galloway makes predictions about the state of retail in 2015. Galloway says pure play retail - whether pure e-commerce or pure brick-and-mortar - is dying. Content and commerce will become more integrated and essential to converting browsers into buyers. Impulse purchases are on their way out and Apple will become luxury brand
1) The Death of Pure Play Retail
Despite charismatic founders and enticing offerings for consumers, none of the e-commerce stars of the early 2000s have met expectations. Net-a-porter is still not profitable. Fab.com went from a $1 billion valuation and raising $150 million of additional funding in 2013 to a $15 million fire sale in November 2014. Gilt raised $50 million of funding in February and disappointed investors waiting for an IPO in 2014.
Simply put, Amazon’s low-cost and fast delivery options have made it too expensive for any brand to compete with an online-only model. However, stores are where brands can and should compete. Smart e-tailers (Warby Parker, Birchbox, Rent the Runway, Bonobos) realized early on that their customers prefer to pick up or try on their items in-store at the own convenience rather than wait for (and often miss) delivery. The last-mile problem - or the yellow slip left at the door - is Amazon’s Achilles heel. Galloway predicts that Amazon will make a transformative acquisition to gain a retail footprint in 2015: a JC Penney, a gas station chain, the U.S. Postal Service or Radio Shack.
2) Integration of Content & Commerce
The death of e-tailers does not mean brands with limited online and mobile presence are safe. Commerce has reached a tipping point where more than half of all consumer purchases are influenced by online information. And consumers who go online (on a mobile device) while at the store experience a 27% lift in conversion, dispelling the myth that showrooming hurts stores. Consumers who research a purchase online prior to visiting a store and pull out their smartphone during the visit experience a 40% lift in conversion.
So how can brands make sure they are improving the likelihood that the consumer looking at their online and mobile site will make a purchase? And how can they increase cart sizes? Content. Savvy brands incorporate content on the path to purchase that helps shoppers make a decision. Scott Galloway presents three questions brands should ask themselves when placing content on their site:
1) Does your strongest content sit on somewhere other than your brand site - on a blog or microsite?
2) Are your most expensive pieces of content a commerce dead end? (e.g. tutorials without a link to purchase featured products.)
3) Are your hardest-working content publishers ignored? (Are you publishing reviews and featuring user-generated content on your desktop and mobile sites?)
4) Does your top sales associate provide better customer service than your digital channels?
Gap was the first brand to integrate content and commerce. Lacking the budget for billboards, the brand placed content in its stores and developed the branding with blonde wood floors, well-trained sales associates, and television-quality videos broadcast in store.
3) The Death of Impulse Purchases:
Foot traffic to malls and retail stores is declining, even though 90% of sales still happen in physical stores. The new shopper researches items online and picks them up at the store, marking the end of aimless browsing and impulse purchases at the mall. Similarly, as online grocery takes off, brands that rely the impulse purchases made at the aisle line - flowers, magazines, candy bars - will experience a decline.
For food and CPG brands, making it into the 50 million first online grocery baskets (predicted for 2015) of online consumers is critical. Online shoppers tend to repeat their purchases rather than browse aisle and be open to trying new items.
4) The Rise of Luxury Brands and Apple:
Luxury brands will intensify the competition for specialty retailers because of their high margins and consumers’ tendency to opt for high-value or low cost. Luxury brands can be characterized by the following: an iconic founder, an exceptional price point, craftsmanship, vertical distribution, global presence and recognition, and a self expressive benefit that extends beyond the item’s face value. Apple contains all of these characteristics and has completed its transformation to a luxury brand with the Apple Watch.
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hi Scott, I'm from the future. you're gonna be huge in 2017.
So. Huge.
hi Scott, I'm from the future. you're gonna be huge in 2019.
You SOOOOOOO called it. Amazon opening 300 physical bookstores.
Related to your discussion of putting content in the commerce (and consumers wanting more information -- or the most relevant info to make a purchase right within the ecommerce), two things -- Yottaa found (July 2014) that 80% of mobile revenue comes from full site browsing and 35% of mobile visitors prefer the full site to the m.site. Seems to support your point.
More than a year since this speech, and he was right on target. McDonald's became a drive through lumber store. The Mars colony ran out of shampoo and had to come back.
4:50 Amazon is going to make an earth shattering retail acquisition. WOW. Whole Foods.
@17:50- We may find that Apple's IOS branding for the "wealthy and well-educated" to dwindle as older user's seeking an easy experience die out, and younger users crave versatility and individuality.
Yes, 7 years ago Apple's experience blew competition out of the water. Now, they only have the brand.
and now they have nothing
Scott Kamps-Duac I just got a $29. Alcatel Pixi, and it's great. (age 61.)
L2inc Sott, you were 100% right. Buying the Apple watch took 10 seconds. I'd already decided on the one I wanted, so it was a matter of selecting it, telling it where to ship, and then hitting pay. That was it!
And you probably will never buy another one ever again... Apple is overrated... At some point people that think with their gonads get tired and look or sexy products somewhere else. Same goes for partners...
@@KeyserSoseRulzlol
Scott will you do something on JCPenney and their demise as a retailer that's been in business for over a hundred years
I like watching your videos but I feel like there is a massive number of companies that You mention that I have not heard of and I'm a uppper middle class young adult, I wonder where the disconnect is
Great deadpan delivery
Brilliant
If you look at it since a picture in a very expense it was 90% Apple laptops, in 2003! These are now thirty something with professional jobs.
IMHO the death of Marriages is something you really have to speak about! We now live in Society where you're worst off being married then being single! That is a sea shift!
Accurate about Amazon and brick and mortar. Way off about Apple Watch which flopped
Did it? Lol, he was still right
Apple watches are outselling all swiss watch makes combined.... from the cheap to expensive in unit terms. If its a flop its one of the most profitable flops in history.
Amazon bought Wholefoods
He predicted it.
Transformation in traditional retail Stores--becoming fullfilment centers and brands opening up #BrandCenters ... Competitor to Jeff B "e-mall" is network of #entrepreneurs (Business Network) working together and offering value to customers by having their own "e-mall(s)"... Key is to form #businessnetworks in this rising world of #NetworkedEconomy & #OmniCommerce, Just my 2cents
KP,Co-Founder,www.dreamzNgoalz.com
im at the start of this vid and im like, why is he generalizing by age? I love space odysee.
Predcition of Amazon buying a Brick& Mortar did not become true
+stan van den Broek gave the talk in March, they announced opening stores in February. Came true!
stan van den Broek I'm from the future. They will
Amazon is opening stores in multiple cities, just search about it.
stan van den Broek ...whole foods