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jerryking : cannibalization   3

Brands Invent New Lines for Only Amazon to Sell WSJ
Jan. 25, 2019 | WSJ | By Annie Gasparro and Laura Stevens.

Amazon gets exclusive products, while brands receive faster customer feedback, marketing support and increased sales.......To build a big line of exclusive products on its site, Amazon.com Inc. AMZN 0.95% is pushing other brand manufacturers to do most of the work.

The online retail giant is asking consumer-goods companies to create brands exclusively for Amazon after finding that developing them on its own is too costly and time-consuming.....Amazon’s initiative is the latest example of the e-commerce giant flexing its muscles in order to offer the lowest prices and widest selection, as it seeks to cut into the market share of big-brand manufacturers.....Manufacturers generally benefit from selling their products through a range of retailers. Also, they risk cannibalizing higher-margin sales of their main brands by offering comparable products under different labels. But those entering deals with Amazon view the arrangement as a golden opportunity.

In exchange for creating exclusive products, the brands get help launching their products on Amazon.com, faster customer feedback when testing new products, marketing support, and, of course, revenue from the sales. They also can appear at the top of search results—a big draw given that Amazon’s platform lists an estimated 550 million items......Speed was paramount. “We had to take what would normally be 12 to 24 months of development to 90 days,”....Amazon, on its own, has been quietly adding to its in-house brands in recent years. Analysts estimate the site now offers more than 100. ....Amazon sometimes promotes its own brands higher in search results on its site, like “Amazon’s Choice” and sponsored items, or as default results in voice searches using Amazon’s Alexa virtual assistant.

In-house brands often generate a higher profit margin for retailers, including Amazon, and can draw in customers because they can’t find those brands elsewhere. But developing a new brand and formulating products takes time..... the program offers manufacturers a way to “launch brands and products directly to Amazon customers.”

Amazon is increasingly important for consumer-product manufacturers. It now accounts for roughly half of all sales online,.....Amazon’s program also can be used for “orphan brands” that manufacturers have stopped selling or that never made it to market.....Amazon has no issue going full-court press on private label, and pursuing all these brands. If the quality and pricing architecture don’t fit and they have to pivot, they’ll do so,” said Todd Mitchell, president of Compass Marketing Inc., which works with Amazon. “They’re not limited to the constructs of shelf space.”
accelerated_lifecycles  Amazon  brands  cannibalization  CPG  e-commerce  exclusivity  fast-paced  in-house  manufacturers  new_products  orphan_brands  private_labels  product_development  product_launches  shelf_space  speed 
january 2019 by jerryking
As Retailers Race to Close Stores, a Web Startup Is Opening Them - WSJ
By Khadeeja Safdar
April 30, 2017

Online brands are treading more carefully into physical retail. Several brands, such as Everlane, Casper and Warby Parker, have opened temporary stores to test out foot traffic and experiment with new concepts. ....One challenge for online brands is to ensure that new locations increase sales, rather than cannibalize existing business.

“We have to see the interplay between our online and offline channels,” said Ms. Ulman. “A customer who shops online and offline is supposed to be very valuable, but we want to understand just how much more valuable.”....Online apparel brands are finding that they don’t need much to set up a store. The evolution of point-of-sales technology means that transactions can now be made on phones and tablets. Some newer retailers don’t even keep much inventory. Bonobos, which started out selling men’s clothing online, lets customers try on items at its more than two dozen “guideshops” and mails purchases to their doorsteps.

Greats sells eight core styles of shoes in different colors and materials, making its business more mobile than that of a traditional retailer. At its new locations, the company plans to bring its own interior elements such as shelving, greenery and lighting.

“You can do a lot within four walls,” said Ms. Ulman. “All we really need is some Wi-Fi.”
clicks-to-bricks  sneakers  pop-ups  e-commerce  retailers  store_closings  shopping_malls  landlords  bricks-and-mortar  foot_traffic  omnichannel  short-term  leasing  inventory-free  cannibalization  Bonobos  Everlane  Casper  Warby_Parker  point-of-sale  brands  Wi-Fi  mens'_clothing  apparel  physical_retail 
june 2017 by jerryking
Building Wealth - 99.06
J U N E 1 9 9 9 |The Atlantic | by Lester C. Thurow. The new rules for individuals, companies, and nations.

Rule 1 No one ever becomes very rich by saving money.
Rule 2 Sometimes successful businesses have to cannibalize themselves to save themselves.
Rule 3 Two routes other than radical technological change can lead to high-growth, high-rate-of-return opportunities: sociological disequilibriums and developmental disequilibriums.
Rule 4 Making capitalism work in a deflationary environment is much harder than making it work in an inflationary environment.
Rule 5 There are no institutional substitutes for individual entrepreneurial change agents.
Rule 6 No society that values order above all else will be creative; but without some degree of order (institutional integrity??), creativity disappears.
Rule 7 A successful knowledge-based economy requires large public investments in education, infrastructure, and research and development.
Rule 8 The biggest unknown for the individual in a knowledge-based economy is how to have a career in a system where there are no careers.
anomalies  cannibalization  capitalism  career_paths  change_agents  constraints  deflation  digital_economy  disequilibriums  entrepreneurship  high-growth  individual_initiative  institutional_integrity  JCK  knowledge_economy  Lester_Thurow  Managing_Your_Career  messiness  new_rules   personal_enrichment  public_education  public_investments  ROI  rules_of_the_game  technological_change  unknowns  wealth_creation  
november 2011 by jerryking

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