The future of Retail !
Retail has been a backbone for most of the economies around the world. Retail contributes to 8% of GDP in countries and is the single most popular method of creating tax revenues for governments in form of GST, VAT, Service Tax, viz.
Retail is asset heavy business but most of the business people have become billionaires due to this.
Walmart the world's largest retail company with more than 18,000 stores across the world generates $500 billion in revenue every year in the US. Tesco, a UK retail chain is yet another remarkable brand in retail and other like Marks & Spencers, Sears, Costco, Kroger, Target, METRO, Aldi, Zara, Forever 21 follow different business models which are again based on traditional retail business.
Since the introduction of online commerce since the 2000 bubble burst retail mid and small range retail companies and malls started their countdown to shut shop by 2018. Close to 50% of Retail stores started closing down due to low operating margins through sales and asset-heavy business models which the companies couldn't survive. Companies like Sears, Rockport, David's Bridal, Gumps, and many others filed for bankruptcy or got acquired by large players in the market.
The only reason for the downfall of so many companies because of the surge in e-commerce led by Amazon and eBay in the US. Amazon who's market capitalization exceeds $700 billion and multiple business verticals made itself a giant in the online commerce space.
Wide product choices, great UX, super fast delivery and logistics, high quality of product lines, superb customer service, contributed to the rise of e-commerce.
Amid the bankruptcy and low offline sales Amazon bought 4th largest grocery retail chain in the US for $13 billion to expand its offline presence and implement its AI-based shopping experience stores Amazon Go.
While this happens in US, the scenario is quite opposite. China's undisputed online retail king Alibaba is partnering with malls and retailers to provide digital experiences O2O- Offline to Online.
It recently launched a pilot to test the innovations at scale by installing digital mirrors in malls and shortlist apparels and products etc to try handy and check from the website and pay automatically online. If not in stock get it delivered. It's a whole new level of customer experience that Alibaba is elevating.
Although most of the things are uncertain, but online commerce has its own way.
Retail is asset heavy business but most of the business people have become billionaires due to this.
Walmart the world's largest retail company with more than 18,000 stores across the world generates $500 billion in revenue every year in the US. Tesco, a UK retail chain is yet another remarkable brand in retail and other like Marks & Spencers, Sears, Costco, Kroger, Target, METRO, Aldi, Zara, Forever 21 follow different business models which are again based on traditional retail business.
Since the introduction of online commerce since the 2000 bubble burst retail mid and small range retail companies and malls started their countdown to shut shop by 2018. Close to 50% of Retail stores started closing down due to low operating margins through sales and asset-heavy business models which the companies couldn't survive. Companies like Sears, Rockport, David's Bridal, Gumps, and many others filed for bankruptcy or got acquired by large players in the market.
The only reason for the downfall of so many companies because of the surge in e-commerce led by Amazon and eBay in the US. Amazon who's market capitalization exceeds $700 billion and multiple business verticals made itself a giant in the online commerce space.
Wide product choices, great UX, super fast delivery and logistics, high quality of product lines, superb customer service, contributed to the rise of e-commerce.
Amid the bankruptcy and low offline sales Amazon bought 4th largest grocery retail chain in the US for $13 billion to expand its offline presence and implement its AI-based shopping experience stores Amazon Go.
While this happens in US, the scenario is quite opposite. China's undisputed online retail king Alibaba is partnering with malls and retailers to provide digital experiences O2O- Offline to Online.
It recently launched a pilot to test the innovations at scale by installing digital mirrors in malls and shortlist apparels and products etc to try handy and check from the website and pay automatically online. If not in stock get it delivered. It's a whole new level of customer experience that Alibaba is elevating.
Although most of the things are uncertain, but online commerce has its own way.
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