Fast-growing Online Shopping forces Business to Reenact Marketing Strategy
Frank Feb. 22, 2015, Last updated in April 3, 2015
in Waterloo, Ontario, Canada
A same product, the price from online shopping is only one-third of that in department store, there more and more people are turning to online market. Fast-growing Online Shopping is remodeling business model while causing crises that threaten the survival of some businesses, and also creating new business opportunities.
The opportunities are often birth with the crises.
It said that, every time, the new opportunities would create a group of millionaires! However, for the most of people, any time of opportunity coming will surely go through four stages: "Do not perceive, To look down, Do not understand, and then Too late to take action."
--- Frank Feb. 24, 2015 in Waterloo, Ontario, Canada
Contests:
1. Online Shopping is remodeling Sales Model and Manufacturers Marketing
2. The development trend of the Online Shopping
2.1. The price from online shopping is only one-third of the department store
2.2. More and more people turn to online shopping
2.3. More and more bricks-and-mortar stores closed
2.4. The rapidly rising price of real estate is destroying traditional commercial business
2.5. E-retailers beat stores in customer satisfaction
2.6. Wal-Mart Global e-commerce sales climb 22%
2.7. E-commerce ebay is in a leapping growing
2.8. China's e-commerce Alibaba Group is in a leapping growing
2.9. Alibaba shakes up online shopping market for Canadian producers
2.10. Online Shopping is growing in Canada
2.11. The closure of Future Shop shows that online shopping is in booming
3. The New Opportunity for Canadian businesses
4. Some Canadian businesses may lose good opportunity
1. Online Shopping is reshapping Sales Model and Manufacturers Marketing
November 18, 2014, there was report that China's Alibaba Sells 90,000 Canadian lobsters in one day. The fact shows strong capability of online shopping . And such online shopping is quick growing world widely. And also, as the constantly improvement of the means of payment, credit guarantee, and delivery capabilities, its growth rate will be faster and faster. It indicates that Traditional Sales Model by the bricks-and-mortar stores faces the crisis from Online Shopping, and it will impact a large number of relatedbusinesses in traditional sales channels, especially the manufacturers in marketing.
It is necessary to carefully analyze the development trends of Online Shopping and to take proper response measures in advance to reverse the adverse to favorable.
2. The development trend of the Online Shopping The information of following section 2.1, 2.2 and 2.3 is all excerpt traslated from Jan. 5, 2015 Mandarin article that There three business sectors will collapse in Internet era China. Although those whathappened is in China, but, Canada will be very much the same.
2.1. The price from online shopping is only one-third of the department store
Although, besides shopping, people also need enjoying shopping experience, but the price, after all, is the question that people are most concerned about. Traditional department stores can provide the perfect shopping experience, but it is difficult to reduce the prices. The cheaper and more convenient Online Shopping is gradually to win the heart of the consumers.
"I saw a brand of sandals, firstly perform a try at the department store with a good selection of colors and styles, then, to buy on Taobao (a website for online shopping that operates in China by Alibaba Group), the price is only one-third of the department store." Beijing girl Ms. Wang exchanges the shopping experience with colleagues. Ms. Wang's monthly income is over ￥10,000, which is the traditional target customer base of the department stores, however, such customers are gradually to move closer to Online Shopping."
2.2. More and more people turn to online shopping
"With the improvement of the business services and product quality, the extent of consumers' trust and dependence for online shopping is enhanced. And also, customer base of online shopping is in trends of evolution from young consumer groups mainly gradually expanding to higher ages, and from low consumption in low frequency to the larger consumption in high frequency."
"At the same time, B2C website intensified price war to attract and diversion of vacillating consumer group in between traditional department stores and online shopping. Year after year, incremental online shopping market has eroded the share of the traditional department store. Admittedly, the categories that department store sales fell in a larger share is also the categories that are convenient for online purchasing, such as home appliances, IT products, textiles, and even luxury goods."
2.3. More and more bricks-and-mortar stores closed
"After a nearly 10 years of rapid development, the traditional department stores, indeed, have come into a bottleneck: online shopping, the changes of the consumers' buying habits, as well as, the pressures of the high operation cost, all make traditional department stores face with the challenge of survival or death. On the road of transformation to the high-end consumer business model, they are also facing huge challenges, successful cases were very rare."
"Online e-commerce results in strong impact on the traditional mode of operation of retail commercial enterprises. In particular, for the major supermarket chains that are with large-scale shopping malls, in types of goods, large logistics costs, and high manpower costs is being challenged."
"On the street, more and more clothing stores closed, or labeled with the notice of sublet. In this time of previous years, the major apparel brands oppen General Assembly of the dealers and was crowded, but this year, the dealers meeting is unusually quiet."
"A number of retail giants closed stores, such as, Wal-Mart, Suning and Wonder City, etc.."
2.4. The rapidly rising price of real estate is destroying traditional commercial business
Many countries regard the development of real estate as an important means of promoting economic development, a lot of investment institutions take real estate as a financial tool to obtain profits, and the general public is also taking real estate as a hedge against inflation and the means for profit.
The development of the real estate has been from people need to survive into a speculative investment, which pushing up land prices and housing prices, to make operating costs unaffordable for those businesses that take land and housees as the means of production - the manufacturing of real economy and commercial businesses.
My Aug. 24, 2014 article that Over-heated real estate market is ruining Canadian economy from Japan mirroring Canada discussed deadly hazard of abnormal development of real estate for national economic development with the true experience of Japan's Bubble Economy 1980s.
The rapidly rising prices of land and houses of Vancouver and many areas of Canada are following the dust of the failed road of Japan's bubble economy.
The rapidly rising prices of land and houses is destroying traditional commercial business, and promoting the development of Online Shopping.
2.5. E-retailers beat stores in customer satisfaction
Feb. 19, 2015, the article E-retailers beat stores in customer satisfaction study reported that:
Consumers are more satisfied with online retailers than with stores in the latest edition of the American Customer Satisfaction Index.
Its Retail Report 2014 finds that that on a scale of 0 to 100, overall satisfaction with retail achieves a score of 78.6, down 1.4% from 2013 and marking the end of three consecutive years of growth. “Higher prices contribute to the downturn, with the strongest impact on retailers that sell nondiscretionary products,” the report explains. “Rising cost of food and staples creates challenges for supermarkets and drug stores, while department stores and specialty retailers are less affected.”
Satisfaction with e-retailers, by contrast, increased 5.1% year over year to 82. “According to online shoppers, Internet retailers provide an efficient process for checkout and payment,” the report says. “In general, sites are easy to navigate, pages load quickly, and retailers offer a strong variety of merchandise with useful product images.”
The report also notes that surveyed consumers give good ratings to such e-commerce features as product descriptions, shipping options and merchandise availability, including desired models, colors, and sizes (80). “Product reviews by other customers are helpful, as is customer support via live chat, help pages, and call centers,” the report adds. “Online shoppers are least satisfied with site-generated recommendations of other products to buy, apparently because such recommendations are less trusted.”
2.6. Wal-Mart Global e-commerce sales climb 22%
February 19, 2015, article Global e-commerce sales climb 22% for Wal-Mart reported that:
Global e-commerce sales increased 21.6% to $12.20 billion from $10.03 billion for fiscal 2014.
Wal-Mart plans to spend heavily to continue to grow e-commerce and will invest at least $1.2 billion and possibly substantially more in the next year.
In the year ahead, Wal-Mart plans to roll out several new web programs, Neil Ashe, global e-commerce CEO, told analysts. “We’re investing in four areas: our global technology platform, our next-generation fulfillment network, our talent, and on integrating digital and physical,” Ashe told analysts.
In the next year Wal-Mart expects to more than double the SKU count of its online inventory. “We’ll do that through a thoughtful balance of our own merchandise and marketplace sellers,” Ashe told analysts. “We expect to double our assortment this year to well over 10 million SKUs.”
Faster e-commerce fulfillment is another area Wal-Mart will continue to put resources into, the company says. “Our next-generation fulfillment network combines new large-scale fulfillment centers that combine with our distribution centers and stores, all connected by Wal-Mart’s transportation network,” Ashe told analysts. “Our data scientists have built algorithms that dictate the assortment that needs to be placed in our different nodes, and to dictate from which node we ship an order.”
2.7. E-commerce ebay is in a leapping growing
Nov. 21, 2014, a Mandarin article that An introduction and development prospects of ebay reported that:
The E-commerce eBay has 37 independent sites and portals in 193 countries and regions throughout the world, nearly 300 million users, supporting 23 languages and 26 currencies, daily processing volume reached 7.6 million deals.
2013, ebay brand values $ 17.7 billion with an increase of 40% and ranked 47 strong global brand. In 2009, it was ranked 100 only.
2015, eBay expects to achieve $ 300 billion of trading volume, and in 2012, it was only $ 175 billion; at the same time. In 2015, eBay expects to achieve revenue of over $ 21.5 billion compared to 2012 of $ 14.1 billion only, it will be implemented over a 50% increase.
2.8. China's e-commerce Alibaba Group is in a leapping growing
Alibaba Group Holding Limited is a Chinese e-commerce company that provides consumer-to-consumer,business-to-consumer and business-to-business sales services via web portals. It also provides electronic payment services, a shopping search engine and data-centric cloud computing services. The group began in 1999 when Jack Ma founded the website Alibaba.com, a business-to-business portal to connect Chinese manufacturers with overseas buyers.
On 5 September 2014, the group—in a regulatory filing with the U.S. Securities and Exchange Commission—set a US$60- to $66- per-share price range for its scheduled initial public offering (IPO), while the pricing of the IPO initially raised US$21.8 billion, which later increased to US$25 billion, making it the largest IPO in history.
Jan, 29, 2015, the article Alibaba released 2014 Q4 earnings reported that:
In 2014 Q4, total turnover was 787 billion Yuan with 49% increase. The revenue rose 40% to $ 26.179 billion Yuan. The profits rose 34% to $ 15.103 billion Yuan in a profit margin of 58%.
In 2014 annually, the commodity turnover was total 2.3 trillion Yuan, which was more than 8% of the total retail sales of consumer goods in China. Active buyers were 334 million with a 45% increase, which was a half of Internet users in China, and was a quarter of the entire China’s population.
2.9. Alibaba shakes up online shopping market for Canadian producers
The report Alibaba shakes up online shopping market for Canadian producers said that: "Alibaba is China’s largest online commerce company where consumers connect with products and companies connect with suppliers. When you tally up the sales, it’s already bigger than Amazon and eBay combined. And it owes much of its success to China’s ballooning middle class, where a growing number of people can spend more on things they need and on stuff they truly don’t need." “'There a huge amount of demand from China,'” Ma told the Canadian prime minister and fellow audience members in Hangzhou, China, where Alibaba is headquartered. He added that 120 million people are shopping on his sites every day.
"Alibaba sold 90,000 lobsters in a one-day sale this week, giving Nova Scotia fishers a powerful entry to the China market."
"A massive surge in Canadian lobster sales is just one more sign China-based e-commerce giant,Alibaba, is shaking up the online shopping world."
“The Chinese weren’t just clicking on Canadian lobster last Tuesday. On that day, sales throughAlibaba’s websites exceeded $9.3 billion (US).”
"Alibaba founder, Jack Ma, told Stephen Harper during his recent trip to China that customers bought 20,000 Canadian lobsters through his online empire last year. Ma — who appears set on world e-commerce domination — predicted better results to come."
“'We can help Canadian small businesses to sell their products to China,'” he informed Harper at their meeting. Canadian companies are already cropping up on Alibaba, peddling everything from maple syrup to clothing.
"Ma’s North American invasion is already in full flight. The company has just sold its first shares in New York, raising a cool $25 billion."
The fact has showed that Online Shopping provides huge marketing potential for Canadian businesses.
2.10. Online Shopping is growing in Canada
January 24, 2012, Online shopping won't kill bricks-and-mortar stores, Whistler conference told:
"Shopping online is growing at an astronomical rate in North America, but that doesn't mean the imminent death of traditional bricks-and-mortar stores, panelists told a conference on shopping centres Monday."
In fact, smart retailers who have a strong presence online are finding themselves in better shape than many stores that stick to a traditional model, according to James Smerdon, director of retail and strategic planning for Colliers International.
"Retail sales pump more than $415 billion annually into the Canadian economy, with growth this year predicted to be about four per cent, he said. B.C. accounts for about $40 billion of that."
"But online, consumers in Canada spend about $15 billion a year in total purchases, with about a third of that being $5 billion being converted from in-store to online. That impact is not to be trifled with; that's the equivalent to about 10 million square feet of lost retail space. Yet online retail sales is growing about 15 per cent per year, making it a significant issue for traditional stores."
2.11. The closure of Future Shop shows that online shopping is in booming
Mar. 29 2015, the article No place for Future Shop as shopping's future shifts reports that: "The sudden closing of 131 Future Shop electronics stores on Saturday, with 65 of them set to re-open as sister chain Best Buy in a week, underscores the difficulties of running dual banners as more business shifts online."
Mar 30, 2015, the report "Future Shop stores lost out to fulfilled online shoppers" provided the reason:"Electronics stores are suffering from the rise of the pampered, fulfilled cybershopper who can now get everything online, even advice."
3. The New Opportunity for Canadian businesses.
Everything has two sides, the Crisis will certainly have and create new Opportunity for Canadian businesses.
Businesses have to Reenact the Marketing Strategy to reverse the Crisis into Opportunity by re-design of the model of the products and the packaging to be suitable for quick retail delivery, especially, the foods, such as the meats for Air transporting.
Online Shopping also provides a new Opportunity for businesses to market in the model of OEM - Origin Entrusted Manufacture.
In which process, the business owners make selves as the Brand Producer or Original Design Manufacturer with not directly produce goods, but to use own grasp of the "key technology" only responsible for the design and development of new products, and control sales "channel", and then to entrust other manufacturers to finish the production, and then to directly affix own brand names on the products. Thus to reduce the risk of the establishment of the new production line and to win the market and even time.
4. Some Canadian businesses may lose good opportunity.
Still from above article that There three sectors will collapse in Internet era China:
Every time, the new opportunities would create a group of millionaires! However, Kodak's bankruptcy, Sony's decline, Nokia was acquired,......, even Wal-Mart was overwhelmed to have to close its stores.
This is a changing world, any time of opportunity coming will surely go through four stages: "Do notperceive, To look down, Do not understand, and Too late to take action."
In this process, some of Canadian businesses may lose good opportunity.
--- Frank Feb. 22, 2015, in Waterloo, Ontario, Canada
Undercurrent News November 18, 2014, 4:34 pm
ZF Max International, a Canadian-based operation with a parent company in China, claims to have sold 90,000 lobsters in one day through Tmall, Alibaba’s upscale shopping mall site, reports CBC News.
Alibaba founder, Jack Ma, told Stephen Harper during his recent trip to China that customers bought 20,000 Canadian lobsters through his online empire last year.
ZF Max claims to have smashed this in one day. “I am thrilled,” said Marc Surette, of ZF Max, about the remarkable volume.
“As we watch the internet grow and we watch online shopping grow, there really is no imaginable limit to what this could mean,“ said Surette. ZF Max employs up to 60 Nova Scotians and runs a lobster plant near Halifax.
Lobster plant running full throttle to feed demand from China
Elizabeth MacKinnon transfers lobsters bound for China on Tuesday at Capitol Seafood International in Eastern Passage. (CHRISTIAN LAFORCE / Staff)
An Eastern Passage lobster processing plant has been operating full tilt since an October change in ownership.
The new Chinese owner is now proceeding with plans to expand and add capacity.
SEE ALSO: Adding value to lobster in 2015
“The plant’s been operating wide open for the past three months with 25 to 30 people working daily,” Marc Surette, with ZF Max International Inc., said in an interview Tuesday.
“They were packing steadily and perhaps had only Christmas Day off during that period.”
ZF Max International is the susbsidiary of Zoneco Group Corp. Ltd. of Dailian, China, which acquired the former H&H Fisheries Ltd. processing facility in October and rebranded it as Capital Seafood International Inc.
“We fully expect to increase employment to 50 people during peak periods of 2015,” said Surette, Atlantic Canada manager of logistics, administration and fisheries policy for ZF Max.
A growing appetite in China for Atlantic Canadian lobster helped the new owner achieve about 90 per cent of its objectives for the closing months of 2014, said Surette, who works from the company’s Yarmouth office.
The Chinese owner of Capital Seafood International has been on a mission to keep lots of Nova Scotia lobster stocked at its 400-metric-tonne holding facility in Shanghai.
“It has been a very successful first season with lobster, and the plan is to increase volume and quality in the upcoming year,” Surette said.
The owners of the Eastern Passage facility had said they would also process other products, such as sea urchin, haddock, cod, halibut and sea cucumber.
“We hope to bring more jobs to the Eastern Passage community,” Surette said.
Zoneco Group is one of China’s largest seafood companies, with about 5,000 employees and 400 retail outlets in that country.
Reg Hartlen, general manager at Capital Seafood International, said the future looks bright for the facility, located in the Fisherman’s Cove area of Eastern Passage.
“Certainly we’ve been very busy and the demand (for lobster) is good,” Hartlen said.
Improved air freight service out of Nova Scotia would contribute to the company’s future success, Hartlen said, adding this has been a long-standing issue.
Hartlen said lobster shippers sending large volumes by air often send product to major centres like Boston, New York, Montreal or Toronto, where they can obtain more space on dedicated cargo jets.
Earlier this year, Korean Air launched weekly air-freight service to Incheon, South Korea, out of Halifax Stanfield International Airport.
Hartlen said a benefit of the service is that Korean Air uses a dedicated cargo jet instead of loading cargo into the belly of a passenger jet, which is often how lobster is air-freighted out of Nova Scotia.
“The logistics can be challenging when it is necessary to move large volumes of lobster in many small loads due to air-freight limitations,” he said.
90,000 Nova Scotia lobsters sold in a single day on its Tmall website
Posted:Nov 15, 2014 5:00 AM ET Last Updated:Nov 17, 2014 9:26 AM ET
http://www.cbc.ca/m/touch/news/story/1.2835737
Alibaba sold 90,000 lobsters in a one-day sale this week, giving Nova Scotia fishers a powerful entry to the China market. Brian Snyder/Reuters
A massive surge in Canadian lobster sales is just one more sign China-based e-commerce giant, Alibaba, is shaking up the online shopping world.
Alibaba founder, Jack Ma, told Stephen Harper during his recent trip to China that customers bought 20,000 Canadian lobsters through his online empire last year. Ma — who appears set on world e-commerce domination — predicted better results to come.
And he got them. One company alone estimates it sold more than 90,000 Nova Scotia lobster this past Tuesday on Alibaba’s colossal upscale shopping mall site, Tmall. Tuesday was China’s deep annual discount day.
“I am thrilled,” says Marc Surette about the remarkable volume.
“As we watch the internet grow and we watch online shopping grow, there really is no imaginable limit to what this could mean,“ adds Surette, who works for ZF Max International, a Canadian-based operation with a parent company in China. ZF Max employs up to 60 Nova Scotians and runs a lobster plant near Halifax.
There really is no imaginable limit to what this could mean- Marc Surette, ZF Max International Inc.
The Chinese weren’t just clicking on Canadian lobster last Tuesday. On that day, sales through Alibaba’swebsites exceeded $9.3 billion (US).
Alibaba’s people power
Alibaba is China’s largest online commerce company where consumers connect with products and companies connect with suppliers. When you tally up the sales, it’s already bigger than Amazon and eBay combined. And it owes much of its success to China’s ballooning middle class, where a growing number of people can spend more on things they need and on stuff they truly don’t need.
“There a huge amount of demand from China,” Ma told the Canadian prime minister and fellow audience members in Hangzhou, China, where Alibaba is headquartered. He added that 120 million people are shopping on his sites every day.
Prime Minister Stephen Harper talks with Alibaba Group executive chairman Jack Ma during his visit to Alibaba's headquarters in Hangzhou on Friday. (Associated Press)?
Ma’s North American invasion is already in full flight. The company has just sold its first shares in New York, raising a cool $25 billion.
“We can help Canadian small businesses to sell their products to China,” he informed Harper at their meeting. Canadian companies are already cropping up on Alibaba, peddling everything from maple syrup to clothing.
Roots Canada sells sweats on the site. The popular clothing company's foray on Alibaba is “a preliminary test to help determine whether we decide to develop this further,” states spokesman RobertSarner.
The fraudsters are in on it, too
At first glance, Canada Goose also appears in on the game. But the company says Alibaba is not an authorized retailer. That means if you buy through the site, the “Canada Goose” jacket that arrives by mail will probably be a fake.
Ma has vowed to crack down on vendors peddling knock-offs.
“It’s buyer beware. It is buying blind,” warns Roger Gingerich. The fashion broker is not a fan of the e-commerce behemoth. Using Alibaba, companies with big orders can directly solicit Chinese manufacturers — bypassing the extra cost of a middleman like him.
“The only reason Alibaba is in business is because everyone wants it cheaper. Every year, we’ve got to be cheaper,” laments Gingerich. But he says there’s sometimes a higher price to pay because not all online dealers can be trusted.
The broker says he knows Canadian companies who have hired manufacturers through Alibaba and got burned: “I know of a million-dollar deal that went south. It was for headgear.”
He explains that the order “came in entirely wrong. It was paid for upfront. There was no getting the money back. And a number of people were fired over it, including the CEO.”
Gingerich gives another example where a company received a large shipment of garments that were sized extra small instead of extra large.
He likens the site to a dating service where, when you finally see the goods, you’re sometimes disappointed.
Trust the biggest hurdle
Marketing expert Manish Kacker says ensuring all players are content is a challenge faced by every e-commerce site. He points out that Alibaba has some safeguards in place, such as a forum to provide feedback.
The McMaster University professor adds that Jack Ma’s plan for massive growth may hinge on the trust factor: “To a large extent, going forward, their success will depend on how well they can set up safeguards and ensure that buyers and sellers who use their platform are satisfied.”
Lobster supplier ZF Max is certainly satisfied. Surette says the Maritime lobster industry has struggled in recent years. But, with Alibaba, he says “it’s allowing us to reach the Chinese market in a new way and for Atlantic Canadian lobsters that’s reaching close to 1.4 billion people.”
February 19, 2015, 11:59 AM
E-retailers beat stores in customer satisfaction study
By Thad Rueter Senior Editor
The American Customer Satisfaction Index credits part of that victory with gains made by smaller web merchants.
Consumers are more satisfied with online retailers than with stores, thanks in part to gains made by smaller web merchants in the latest edition of the American Customer Satisfaction Index, commonly referred to as ACSI.
Its Retail Report 2014 finds that that on a scale of 0 to 100, overall satisfaction with retail achieves a score of 78.6, down 1.4% from 2013 and marking the end of three consecutive years of growth. “Higher prices contribute to the downturn, with the strongest impact on retailers that sell nondiscretionary products,” the report explains. “Rising cost of food and staples creates challenges for supermarkets and drug stores, while department stores and specialty retailers are less affected.”
Satisfaction with e-retailers, by contrast, increased 5.1% year over year to 82. The report says “Internet retailers rebound from 2013 when winter storms and a surge in online shopping caused widespread delivery delays. As online sales reached record levels this holiday season, retailers and shippers were better prepared and there were far fewer incidents with delivery. Promotions that began well before Thanksgiving also helped, as consumers did more of their online shopping early.”
ACSI, which is located at and affiliated with the University of Michigan, bases its findings on interviews with 8,738 customers, chosen at random and contacted via telephone and email between Oct. 7 and Nov. 7, 2014. “Customers are asked to evaluate their recent experiences with the largest brick-and-mortar and Internet retail sector companies in terms of market share, plus an aggregate category consisting of ‘all other’—and thus smaller—retailers,” the group says.
For online retail, the report again finds that Amazon.com Inc., No. 1 in the Internet Retailer 2014 Top 500 Guide, leads the pack, with a score of 86 compared with a score of 88 in 2013. There was no immediate explanation for this decline.
Trailing Amazon are:
? Computers and electronics retailer Newegg Inc., which is No. 17 in the Top 500 and achieved a score of 81, down from 83 in 2013.
? Entertainment content provider Netflix Inc., No. 7, with a score of 81, up from 79. “The gain for Netflix represents a third straight year of improvement following the company’s customer satisfaction nosedive in 2011, which was caused by an increase in price,” the report says.
? “All others”—that is, those smaller retailers—had a score of 81, up from 75 in 2013.
? Online marketplace operator eBay Inc. with a score of 79, down from 80.
? Web-only mass merchant Overstock.com Inc., No. 31 in the Top 500, with a score of 77, down from 79 in 2013.
“According to online shoppers, Internet retailers provide an efficient process for checkout and payment,” the report says. “In general, sites are easy to navigate, pages load quickly, and retailers offer a strong variety of merchandise with useful product images.”
The report also notes that surveyed consumers give good ratings to such e-commerce features as product descriptions, shipping options and merchandise availability, including desired models, colors, and sizes (80). “Product reviews by other customers are helpful, as is customer support via live chat, help pages, and call centers,” the report adds. “Online shoppers are least satisfied with site-generated recommendations of other products to buy, apparently because such recommendations are less trusted.”
The Shopping Malls Really Are Being Killed By Online Shopping
Tim Worstall ContributorI have opinions about economics, finance and public policy. full bio →
I'm a Fellow at the Adam Smith Institute in London, a writer here and there on this and that and strangely, one of the global experts on the metal scandium, one of the rare earths. An odd thing to be but someone does have to be such and in this flavour of our universe I am. I have written for The Times, Daily Telegraph, Express, Independent, City AM, Wall Street Journal, Philadelphia Inquirer and online for the ASI, IEA, Social Affairs Unit, Spectator, The Guardian, The Register and Techcentralstation. I've also ghosted pieces for several UK politicians in many of the UK papers, including the Daily Sport.
Contact Tim WorstallThe author is a Forbes contributor. The opinions expressed are those of the writer.
As industries change, as technologies change so that industries have to, there’s often an awful lot of whistling in the wind among those who don’t want to have to admit that the world is changing against their interests. And so it is among people talking about shopping malls in the US. I’ve seen very much the same thing in my native Britain when people start to talk about the death of the “High Street” (what might be called “downtown” in an American shopping sense). When I point out that 12% or so of the stores on said High Street are vacant, 12 % or so of retail spending is nnow online, there’s always a desire to explain that it’s just not that simple, that something else is going on.
No, very little else is going on. More retail spending is moving online thus we need and desire (or, more importantly, we can support) less bricks and mortar retail space. And I’d argue that very much the same thing is happening in the US now with malls. My insistence being despite the insistence of those involved in the industry that that’s not it at all:
One factor many shoppers blame for the decline of malls — online shopping — is having only a small effect, experts say. Less than 10 percent of retail sales take place online, and those sales tend to hit big-box stores harder, rather than the fashion chains and other specialty retailers in enclosed malls.
Well, OK, so 10% or so of sales are online now.
About 80 percent of the country’s 1,200 malls are considered healthy, reporting vacancy rates of 10 percent or less. But that compares with 94 percent in 2006, according to CoStar Group CoStar Group, a leading provider of data for the real estate industry.
Nearly 15 percent are 10 to 40 percent vacant, up from 5 percent in 2006. And 3.4 percent — representing more than 30 million square feet — are more than 40 percent empty, a threshold that signals the beginning of what Mr. Busch of Green Street calls “the death spiral.”
Right, there’s 1,200 malls in the country, of those perhaps 15% are 30-50% vacant and:
Since 2010, more than two dozen enclosed shopping malls have been closed, and an additional 60 are on the brink, according to Green Street Advisors, which tracks the mall industry.
And 2% have gone bust and another 4 % or so are gravely indanger of doing so. Now I know my math here is pretty rough but that is around and about 10% of retail space in malls nationwide either empty or closed while online retail is 10% or so of all retail sales. I’d say that the connection between the two is pretty firm myself, just as it is in the UK.
However, there’s one more part to this story that I think is interesting:
Well aware of the cultural dimensions, as well as the economic stakes, the industry is trying to turn around public perception of these monuments to America’s favorite pastime: shopping.
The malls that are doing well tend to be destinations. Those that aren’t tend to be places where people just go shopping.
Of course, we’ve all made jokes for decades about “retail therapy” and how people go off shopping as something to actually do rather than a task that has to be achieved so that food can be eaten, clothes can be worn. And that is what seems to be becoming ever more apparent. Those places that are places that people go to in order to “shop the mall” are performing a form of entertainment duty. And those are the places that are staying vibrant, for it’s the experience that is being looked for (and I will resolutely retrain myself from making the usual jokes about male and female sterotypical shopping jokes). Those places that were places where people simply went to the store in order to purchase something are the places feeling the real brunt of that online competition.
Another way to put this, and the piece makes the point that it is “high end” malls that are doing well, the middle market that is failing, is that high end shopping is still that experience desirable in and of itself while middle ranking shopping is, well, it’s just shopping, that thing that is so much easier to do online. And however convenient, cheap or simple Amazon or other online stores are, “experience” is not really the description we would apply to the use of them.
My latest book is “23 Things We Are Telling You About Capitalism” At Amazon or Amazon UK. A critical (highly critical) re-appraisal of Ha Joon Chang’s “23 Things They Don’t Tell You About Capitalism”.
Shoppers pack the sidewalks during Boxing Day on Robson street in Vancouver, B.C., December 26, 2011.
Photograph by: Arlen Redekop , PNG
WHISTLER - Shopping online is growing at an astronomical rate in North America, but that doesn't mean the imminent death of traditional bricks-and-mortar stores, panelists told a conference on shopping centres Monday.
In fact, smart retailers who have a strong presence online are finding themselves in better shape than many stores that stick to a traditional model, according to James Smerdon, director of retail and strategic planning for Colliers International.
"Development and store expansion is still going on despite losses to online. What that tells me is that the that stores that are expanding have online presence and they are capitalizing on online sales as well as bricks & mortar," he said a conference organized by the International Council of Shopping Centres.
"It also tells me that those who don't have that are still growing despite it. You can't buy a mattress online."
Retail sales pump more than $415 billion annually into the Canadian economy, with growth this year predicted to be about four per cent, he said. B.C. accounts for about $40 billion of that.
But online, consumers in Canada spend about $15 billion a year in total purchases, with about a third of that being $5 billion being converted from in-store to online. That impact is not to be trifled with; that's the equivalent to about 10 million square feet of lost retail space. Yet online retail sales is growing about 15 per cent per year, making it a significant issue for traditional stores.
In an introductory address, David Henry, the chairman of ICSC, told the audience growth of online spending in the U.S. outpaces traditional retail growth four-to-one. But he noted the U.S. is also vastly oversupplied with built retail space, an average of about 28 square feet for every man, woman and child. Canada, he said, which has weathered the recession better, has a tighter supply at 12 square feet per capita. That's helping to keep retail space booked at higher rates.
For all the modest growth of retail in Canada, B.C. remains flat, Smerdon said.
The ICSC conference drew more than 2,000 delegates around the theme of how to deal with the rapid growth of online retail markets and marketing.
Pollster Evi Mustel, of Mustel Group and Andrew Ramlo of Urban Futures said people may be buying more online, but retail stores are now leveraging that to their advantage.
"This conference told me that the Internet is not going to kill bricks-and-mortar retail. It will complement it," Mustel said. "I think the two will co-exist very well, with the Internet being a very powerful marketing tool for traditional retailers."
"One aspect of shopping certainly is the social side of it. That's hard to do while you are sitting at home behind a computer," Ramlo said. "You may do your research there, but inevitably you will get out and get into the social environment to complete the transaction."
What does this mean for developers and builders of retail space in Canada? According to Michael Penalosa of Thomas Consultants, which handles strategic planning for retail facilities around the world, the traditional enclosed shopping mall is fast becoming an anachronism.
Will “Showrooming” Kill Retail?
2013 年 10 月 11 日
https://www.linkedin.com/pulse/20131011152231-278423572-will-showrooming-kill-retail
"Showrooming," using retail locations as showrooms from which to shop online, makes even the most hardened brick-and-mortar retailer shudder. Retailers cringe when they witness shoppers accessing their smartphones as they peruse the carefully displayed inventory on their shelves, knowing that these items are now listed in recent Google or Amazon search histories, easily accessed later from the comforts of home. Has the victor in the battle for consumer dollars already been declared? Has the physical store become simply a showroom for e-commerce?
These questions are particularly relevant now as we approach the start of the all-important holiday retail sales season. As the Chairman and founder of Gazit-Globe, a company that owns almost 600 shopping centers around the world, I am constantly evaluating the competitive landscape in which we operate.
The result of this type of hybrid shopping does not, however, necessarily result in a lost sale for the brick-and-mortar retailer in favor of the electronic vendor. When looked at more closely, shopper behavior reveals that the majority of smartphone owners use their devices to access relevant information when they are inside brick-and-mortar retailers. Trends indicate that smartphone shoppers are more likely to shop in brick-and-mortar stores than shoppers who do not own smartphone, reflecting both the demographics of this sub-group of shoppers and the advantages of the mobility of their devices; this behavior suggests the blending of alternative retail avenues rather than a division of channels.
So why does a consumer with access to physical “showrooms” and electronic means for easy shopping online still make purchases in a physical store? Is it, perhaps, to fulfill a human need for consumption and the immediate gratification gained by purchasing an item and being able to exit the shop immediately with it in hand? No matter how good a website, how attractive the prices online, or how quick the shipping, e-commerce offers a fundamentally different experience than the physical act of consumption. Nevertheless, the rapid growth of e-commerce is forcing brick-and-mortar retailers to reconsider their traditional model and how they view their relationship with an increasingly diverse consumer base. The role of the physical store itself is changing; it is no longer simply the place to purchase goods but a representation of a retailer’s brand. When consumers can purchase goods online from any location, the ability to draw them to a store lies in offering something beyond merchandise. Location becomes critical to the success of physical retailers, with prime urban locations becoming the shopping and lifestyle destinations of choice. Successful urban shopping centers are more than a place to shop but are natural social and leisure hubs within the communities they serve.
In response to the challenges of e-commerce, traditional retailers have had to adopt new approaches for retaining and gaining market share. To be successful, retailers must develop their own apps and online presence that have the feel and look of their online competitors. Customers expect seamless transitions between online and in-store shopping, and both retailers and landlords need to adopt online methods to enhance a customer’s in-store service and experience, e.g., easy mobile access to product reviews and price comparisons and location-based and user-behavior customized promotions. Furthermore, retailers need to develop their marketing strategies to get the best results across different channels, e.g., offering rewards, “click & collect” services, and in-store self-checkout using personal mobile devices. The possibilities are endless and it is critical that retailers embrace e-commerce as an opportunity.
The influence of e-commerce on retail is not one-way and some online brands have begun to open physical locations, seeking to broaden their brand exposure. This trend is testament to the need to provide consumers with a complete experience that includes the desired elements of both e-commerce and physical shopping. Whereas the internet can be a form of competition for brick-and-mortar shopping centers, it can also be a means to supplement and enhance what a shopping center offers its customers. Ultimately, e-commerce cannot provide the immediacy and convenience of a well-located urban center that reflects the demands and desires of the community it serves. Retailers are increasingly aware of this complex dynamic and are placing more and more emphasis on where they locate their brands. The changing retail landscape will see many shopping centers and regional malls in secondary markets struggle, but shopping centers in prime urban location, with optimal tenant mix and friendly, exciting shopping environments, will succeed as physical destinations and will benefit from the influence of e-commerce.
Asian demand for Canadian lobster on the rise
By Tim Callanan, The Canadian Press Mar 1, 2015 at 6:23 AM Updated Mar 2, 2015 at 1:38 AM
http://www.terracestandard.com/national/294563031.html
HALIFAX - Canadian lobster exports to Asia are growing but one lobster fisherman says that hasn't had much impact on Maritime shore prices.
Bernie Berry of the Coldwater Lobster Association said prices are not yet reflecting the increased Asian demand.
"We're not trying to look a gift horse in the mouth, it's just we were expecting maybe a little bit more," said Berry, whose organization represents fisherman in southwestern Nova Scotia.
Berry said prices in his area this year are about 10 cents higher on average than the year before. The bigger advantage of the Asian markets is that it is easier to unload catches, he said.
"Before the market in China really took off ... we were landing so many lobsters some of the times things would get backlogged," he said.
"But now I think there's enough market, it's big enough and still getting bigger, that it just absorbs what we can catch even though we're at record levels."
Exports of live Canadian lobsters to Asia have increased by more than 400 per cent over the past five years, Halifax Stanfield International Airport recently said in a news release.
The airport said during the holiday season last year, Korean Air Cargo made weekly flights to South Korea with each one carrying 40 to 50 tonnes of lobster, with the largest shipment recorded at 100 tonnes.
While China remains the biggest Asian market for Canada's lobster, South Korea is becoming increasingly important, said Geoff Irvine of the Lobster Council of Canada.
Canadian exports of live lobster to South Korea doubled in value between 2011 and 2013, the federal government says.
On Jan. 1, the Canada-Korea Free Trade Agreement came into effect, which Irvine said should further increase Canada's share of the Korean market.
"The key thing about South Korea is that the Americans have had a free trade agreement for several years and we haven't," said Irvine.
Irvine said the increased demand in Asia can be attributed in part to rising middle classes in the region.
The Lobster Council of Canada recently announced a branding plan for lobster exports, which Irvine said will include Asian markets as part of its focus.
The marketing plan depends on a proposed levy in which lobster fishermen, buyers and processors across the Maritimes would pay one cent per pound of lobster caught to cover the cost of promotional initiatives.
Nova Scotia Fisheries Minister Keith Colwell has said he hopes the levy can be in place by the fall. However, it has gotten resistance from some fishermen and buyers in the province.
Berry said while he understands the reluctance towards the levy, he believes marketing will be key to bringing up prices.
"As much as China's expanded over the past four, five or six years, I think it could be so much bigger and I guess it's how we get into that market and try to market our product that we're going to get a better price."
中国人疯抢龙虾 加国养殖户抱怨未受惠
加国无忧 51.CA 2015年3月2日 07:22 来源：世界日报
加拿大龙虾在亚洲，特别是中国大受欢迎，出口到该地区的数字持续大幅增加，然而有龙虾养殖户抱怨末能因此而受惠。
据哈理法克斯史丹菲尔德国际机场（Stanfield International Airport）最新公布的数字指出，过去5年，加拿大龙虾输往亚洲地区大幅增加超过4倍。在亚洲市场，中国仍然是加拿大龙虾最大的进口国，不过韩国则有重后赶上之势。
在去年的假期节日，韩国货运飞机每周空运40至50吨龙虾返韩国，最厉害的一次是空运100吨。在2011年至2013年，出口到韩国的龙虾增加了一倍。
不过主要生产龙虾的哈里法克斯，有养殖户声称未能因出口大增而得到好处。
冷水龙虾协会（Coldwater Lobster Association）的贝利（Bernie Berry）指出，亚洲市场的蓬勃，未能在收购价反映出来。
代表诺瓦斯高省西南地区龙虾养殖户的贝利表示，该地区2014年的龙虾收购价，每磅只购一年前增加了大约0.1元。他强调养殖户并不是要均分利益，只是希望能够拿取多一点而已。
而代表出口商的加拿大龙虾委员会（Lobster Council of Canada）则表示，当中涉及多个层面，包括养殖户、买家、出口商及处理等，层层的费用，最终到养殖户手里还不是很多。51.CA
不过贝利期望，随着亚洲市场的持续扩大，最终也能让养殖户受惠。..
