During a recent trip to Quebec City, I spotted a red Canadian mail truck. On the side, in white letters, below the French version, I read “Delivering the Online World.” What a great sentiment! Since I haven’t mailed or received anything in Quebec, I’m not sure how well they are keeping up with the claim, but let’s assume for a minute that they are. Think about the implications that has for their business. Rather than worrying about the demise of letters, they have grasped a more important concept- that which parcel delivery is an increasing part of our world. Especially in Canada, with it’s high percentage of rural customers (Canada delivers to a larger area than any other country, including Russia), who likely receive more…
Has Uber created an unfair playing field?
The popular crowd sourcing app Uber has come under fire recently for the unfair playing field that is thought to have been created by the company. Since Uber is unregulated in regards to the services that they provide, the drivers of their vehicles do not need to buy a taxi medallion (license) that costs $1,000 per month in order to be in service. Taxi drivers have begun to protest, in Boston in this case, due to the new competition and their inability to earn a living wage due to their differences. They are offering the same services to customers, yet Uber does not have the obstacles that are faced by taxi companies. With so much innovation happening in a short period of time, there are going to…
3. Changing Consumers: Catering Across Generations
For the first time, four generations are active simultaneously in the US marketplace; leading to a more diverse market. Baby Boomers and their children, called Generation Y or Millennials, compose the largest two generations and wield the largest spending power. While these two generations are similar in size, their shopping behavior, use of technology, and consumer sentiment are highly disparate. This generational gap creates new challenges for marketers, as they must appeal to a variety of preferences, without alienating any customers. Baby Boomers Baby Boomers are contributing to the high rate of growth in the over 60 cohort, a group which is increasing at 2.6% annually, worldwide. Due to people living longer, healthier lives, the 60+ age group will continue to be the fastest growing…
Bots help Americans get jobs
Usually new technology takes jobs away but in the case of the new robotics world, it is bringing jobs back to America. Smaller, less expensive robots are making it more affordable for manufacturers to build factories and distribution facilities in the US. This reduces costs and improves quality controls over off-shore solutions. So, the work is coming back to Americans in the form of higher-paying and better jobs. HOO RAH to bots! Robots Are Starting to Make Offshoring Less Attractive The hype around robots taking jobs is reaching a crescendo, in response to an insightful new bookThe Second Machine Age by Erik Brynjolfsson and Andrew McAfee, as well as an Oxford Martin School study: ‘The Future of Employment: How susceptible are jobs to computerization?‘ The former states that digital technology and robotics…
Product traceability challenges in a digital world
Amazon, and other large fulfillers of digital orders, are struggling with the variety of SKUs (stock keeping units) that exist for what looks like the same consumer item. The grocery industry has lived with this challenge for years. The same rolls of paper towels come in 2, 3, 4, X packs. The same product is made in two different co-packing facilities. Amazon’s solution is to co-mingle products that look the same to the consumer. This is already causing problems for them as counterfeit products get shipped as the real deal. It will not work in the food world where knowing where the product came from is important for track and trace. Do You Know What’s Going in Your Amazon Shopping Cart? Every now and…
Is it time for supply chains to go local?
Is it time for supply chains to go local? This is a question that is being asked across all industries that make use of a supply chain. With increased globalization, supply chains have been put at risk due to small interruptions that may have large repercussions. The cheap mass production supply chains of the past are not prepared to deal with the unpredictable business environment of the future. Supply chains need to become smarter in order to deal with the side effects that may arise from this. Many believe that the solution to these problems is going local. Having a supply chain that can rely on assets located in its direct vicinity is the answer to avoiding the problems that come from globalization. This will…
Tesco Pilots “Shop and Go”
Hate carrying your groceries home? Or don’t want to be stuck carting your groceries around while you complete more errands or meet a friend? You’re not alone. Shoppers in London can now swing through the grocery store on their way home, pick out their produce and other items, checkout, and have their groceries delivered to their home that evening. Tesco is piloting this new service, called “Shop and Go” at a store in Bethnal Green. Delivery is free on all purchases of more than £35, and the delivery drop off point must be within 3 miles of the store. So far, the service is a big hit with customers, and Tesco says it is considering expanding the service to additional stores. Bethnal Green Tesco trial…
#AmazonCart is the new candy display
Do you ever grab a candy bar at the checkout display in the store? Those impulse purchases drive lots of volume for manufacturers. There was a fear that the digital world would eliminate those quick (and often poor) decisions. Fear not, new ways of buying before thinking are appearing. The latest is #AmazonCart, a joint offering from Twitter and Amazon. Someone, say a celebrity, says something cool about a product in a tweet and a link is included. You can reply to the Tweet with #AmazonCart in the reply and the product will be added to your Amazon shopping cart. So, they got me. I was on the rental car bus at BWI when Amazon sent a “Deal of the Day” tweet for a device…
4. Little Big Store: Finite Shelves, Infinite Aisles
The CPG industry went through a period where stores built supercenters large enough to require GPS systems in order to navigate. Those days are over. Today, most retailers are developing smaller formats for neighborhoods or urban environments. The recession enticed many non-grocery channels to expand their grocery offerings. Mass merchandisers, like Walmart and Target, have inserted grocery stores within their stores. The grocery category’s high purchase frequency is appealing to retailers, who view it as a stable base business that nicely offsets other items, like electronics. Drug stores are beginning to look like small grocery stores, particularly in urban environments and “food deserts.” The drug channel has expanded its food offerings beyond beverages and frozen pizza to include a full line of grocery items including…
Gen Z Push the Perimeter of the Store Further
Analysts expect the Gen Z (babies to 23) to drive the perimeter of the store even harder than their Gen X cousins. They want fresh foods and are willing to do some work to get them. That means more proteins and produce and fewer things that come in cans and boxes. Grocery stores need to re-think layouts to draw these consumers to added flavors – spices and condiments, etc. to get them to walk the store. What Comes After Millennials? Generation Salad By Venessa Wong Move over millennials. Marketers are now trying to solve the puzzle of what even younger consumers want to eat. The cohort stretching from newborns to those age 23, dubbed Gen Z, makes up about 32 percent of the U.S. population,…