Supply Chain Management Blog
In the time it is taking you to read this sentence, approximately 100 products were just sold on Amazon – and that’s with a conservative calculation of 35 orders coming into the e-commerce behemoth every second.
Not bad for a brand that started as a bookseller out of a guy’s garage. But it could be bad for you—if your brand is missing out on opportunities due to the massive hold Amazon has on today’s consumers.
From cosmetics, clothes and snacks, to high-end golf supplies, dog treats and specialty socks, there seems to be a subscription box to meet nearly anyone’s – and presumably, everyone’s – preferences. In fact, by some industry estimates, more than 2,500 subscription box companies that have emerged in the last 3 years. This number is only expected to increase as consumers continue to demand customization and convenience.
In my last blog, I shared some insights on why companies expanding their business in Europe should start their journey right in the middle of the so called “Blue Banana” in the city of Venray. Needless to say, our ModusLink Solution Center wasn’t just randomly placed there. Which is why I want to discuss a few economic reasons to start in the center of this European, banana-shaped center for economic and innovative growth:
We’re all used to Black Friday, and (more recently) Cyber Monday, but it now looks like Prime Day is set to be another date in the shopping frenzy calendar. Amazon’s third annual Prime Day is July 11th (though deals are already underway – check them out here!), and early projections show that it could generate as much as $1 billion in revenue for the behemoth retailer. Clearly Amazon is doing something right.
Back in 1989 a group of French geographers known as RECLUS developed a geographical concept of an area stretching from North West England over The Netherlands, Belgium, Southern Germany, a very small part of Northern France and Switzerland up to Northern Italy. They called it banane bleue: the Blue Banana.
It is no secret that the entire retail landscape has endured some major changes over the last few years to accommodate the rapid proliferation of e-commerce. As direct-to-consumer order fulfillment has continued to evolve and consumers have fully developed their taste and expectations for instant gratification, retailers have had to depend heavily on their logistics and supply chain solution providers to make sure their operations are in line with their consumers’ expectations.
By most accounts, it was another successful holiday season for both physical and online retailers, as consumers spent 16 percent more on holiday purchases in 2016. While overall spending continued to rise, there was an interesting statistic showing up in the post-holiday season analysis that retailers of all sorts should pay attention to: “almost 70 percent of total holiday related expenditures occurred in stores with both a physical and an online presence.”
Whether your business is based in the Americas, Asia or the most remote location somewhere in Europe, global expansion is usually a sign of your business doing well. Your customer base has grown and your product is in high demand in areas you have not been able to reach yet.
In 2016, we talked about the many changes occurring within global e-Commerce, from the power of connected devices, to the surge in global markets like Mexico, and the undeniable rise of e-Commerce as the primary mode of purchase. It is clear e-Commerce was thought to be the future of the industry, but the future is now here.
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