How the Industry is Evolving and What the Future Holds The E-commerce Revolution
Roger Egan, Co-founder & CEO of RedMart
Tangible Products Digital Products & Services
Agenda
Tipping Point
Evolution
Future
“We’re in the midst of a profound structural shift from physical to digital retail.”
- Jeff Jordan
The Tipping Point
Tipping Point: Profound Shift from Physical to Online Retail Due to Many Advantages of E-commerce
US Census Bureau
What matters to the customers?
Price Product Range Experience
E-commerce
Brick & Mortar
Advantages of E-com and how they relate to Price, Range, Experience
Experience
VS
Product Range
VS
Price
VS
Stores require a minimum footfall to cover their fixed overhead!
1!
As more people shop online, it creates a Vicious Cycle
Stores require a minimum footfall to cover their fixed overhead!
As traffic is diverted from store to online (RedMart or competitors), the store becomes more and more expensive to operate
1! 2!
As more people shop online, it creates a Vicious Cycle
Stores require a minimum footfall to cover their fixed overhead!
As traffic is diverted from store to online (RedMart or competitors), the store becomes more and more expensive to operate
The store’s offering and service becomes weaker and less efficient
1! 2!
3!
As more people shop online, it creates a Vicious Cycle
Stores require a minimum footfall to cover their fixed overhead!
As traffic is diverted from store to online (RedMart or competitors), the store becomes more and more expensive to operate
The store’s offering and service becomes weaker and less efficient
Causing more people to move online
Vicious Cycle!
1! 2!
4! 3!
As more people shop online, it creates a Vicious Cycle
SE ASIA ~$330 B Marketbut <1% online
Trend evident in VC Investment in E-commerce in SE Asia
Southeast Asia startup investments 2013, Tech In Asia
E-commerce
Brick-and-mortar
More people shopping online = less people shopping in stores
How the landscape is evolving
Platforms / Business Models and TrendsPlatform Players
B2C
Traditional Marketplace
"Asset Light", Instant Delivery Marketplace
Subscription
C2C
Platforms / Business Models and TrendsPlatform Players
B2C
Traditional Marketplace
"Asset Light", Instant Delivery Marketplace
Subscription
C2C
Platforms / Business Models and TrendsPlatform Players
B2C
Traditional Marketplace
"Asset Light", Instant Delivery Marketplace
Subscription
C2C
Platforms / Business Models and TrendsPlatform Players
B2C
Traditional Marketplace
"Asset Light", Instant Delivery Marketplace
Subscription
C2C
Platforms / Business Models and TrendsPlatform Players
B2C
Traditional Marketplace
"Asset Light", Instant Delivery Marketplace
Subscription
C2C
Platforms / Business Models and TrendsPlatform Players
Private Label and Value Added Services
Daily Deal / Flash Deals
Price Comparison and Social Shopping
Fulfillment / Delivery
E-commerce Software Platforms
+
Platforms / Business Models and TrendsPlatform Players
Private Label and Value Added Services
Daily Deal / Flash Deals
Price Comparison and Social Shopping
Fulfillment / Delivery
E-commerce Software Platforms
+
Platforms / Business Models and TrendsPlatform Players
Private Label and Value Added Services
Daily Deal / Flash Deals
Price Comparison and Social Shopping
Fulfillment / Delivery
E-commerce Software Platforms
+
Platforms / Business Models and TrendsPlatform Players
Private Label and Value Added Services
Daily Deal / Flash Deals
Price Comparison and Social Shopping
Fulfillment / Delivery
E-commerce Software Platforms
+
Platforms / Business Models and TrendsPlatform Players
Private Label and Value Added Services
Daily Deal / Flash Deals
Price Comparison and Social Shopping
Fulfillment / Delivery
E-commerce Software Platforms
+
Platforms / Business Models and TrendsPlatform Website /
Mobile Back End Merchandising Marketing Fulfillment Delivery Payment
B2C
Traditional Marketplace
"Asset Light", Instant Delivery Marketplace
C2C
Private Label and Value Added Services
Daily Deal / Flash Deals
Price Comparison/ Social Shopping
Fulfillment Some
E-commerce Software Platforms
“The Everything Store”VS
Fight head on
VS
Team up and provide instant gratification
+
E-Commerce Trends
VSSell your own products or provide value
added service & convenience
Lines blurring between Retailer and Manufacturer
+
Lines blurring between Logistics and E-commerce Companies
What the future may look like
!!!
!!
Business models, industries, companies, and services will converge into a controlled ecosystem.
The Great E-commerce Convergence
!!!
B2C
B2C and Marketplace Converge
!• Purchasing power • Bigger Selection • Faster, Less Capital Intensive Growth • Acquisitions - buys over
!!!
Marketplace
Delivery
Those that control entire supply chain and logistics win
FulfillmentManufacturing
Tech companies and E-commerce Companies Converge
Technology Companies
E-commerce Companies
Tech companies and E-commerce Companies Converge
Technology Companies
E-commerce Companies
Tech companies and E-commerce Companies Converge
Technology Companies
E-commerce Companies
Tech companies and E-commerce Companies Converge
Technology Companies
E-commerce Companies
Tech companies and E-commerce Companies Converge
Technology Companies
E-commerce Companies
Content, Community and Commerce converge
Internet Trends 2014, Mary Meeker
Content, Community and Commerce converge
Internet Trends 2014, Mary Meeker
Best Tech wins
Best, most seamless Ecosystems Win
+ + + + +
+ + + +
+ + +iOS
+ ?
+ +
Retailers become Manufacturers
Manufacturers
Convenience and Instant Gratification Key
Drone Delivery? 3D Printing?
Traditional Brick-and-Mortar must innovate or die
Innovate... or die.
Possible Implications
Opportunity to disrupt Retail Commercial Real Estate
?What happens to
Instant Gratification Models?
What will people do with their time?
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