2015-02-19-奥纬咨询-Changing_the_Rules_9页_143kb

CHANGING THE RULES OF RETAIL: FOUR VIABLE ONLINE E-COMMERCE MODELS

Context: With traditional store sales stagnating and shopping moving online, the retail industry is dominated by a winner-takes-all environment. While many retailers have an online presence, profitable online models remain elusive. E-commerce fundamentally altered retail by eliminating the advantages of physical location and price comparison complexities. Success requires establishing a strong customer proposition.

Analysis: Running a viable online business requires identifying a specific market niche and the ability to deliver superior value. E-commerce requires lower investment, allows comparison shopping ease for customers, but also faces pressure from intense competition and price elasticity. Unlike bricks-and-mortar retail, generalized "jack of all trades" strategies don't typically work. Defining target customer needs and tailoring the offering to meet them effectively is key.

Four Viable Online Models:

1. Price Leader: Offers the lowest prices possible, targeting price-sensitive customers with simple purchase dynamics. Lures customers through search engine optimization and secret sales. Profits through advantageous sourcing or low operating costs. Examples: Vente-Privee (established, high-volume), Made.com (upcoming, growing).
2. Category Expert: Focuses on being the best in a specific product category by offering a deep range, expert service, and tailored advice. Targets customers for complex or repeat purchases. Profits through brand loyalty and natural differentiation margins. Examples: Zappos (established, mass-market shoes), Wiggle.com (upcoming, specialized sporting goods).
3. Default Destination: Aims to become the one-stop-shop for customers' diverse, identifiable needs, offering convenience and reliable service. Builds long-term lock-in (like Amazon Prime). Profits through multi-category scale and integrated services. Examples: Amazon (established, broad price leader, expanding services), Staples (established, office supplies default for B2B).
4. Customer Experience Captain: Leverages physical store assets with online channels, focusing on optimizing the entire end-to-end shopping experience across digital touchpoints. Creates a unique proposition. Requires seamless channel alignment and data utilization. Examples: John Lewis (established, multichannel), Sephora (upcoming, integrated beauty tech).

Common Theme: Success requires radical retail innovation, not merely adapting bricks-and-mortar models online. Businesses must innovate to secure profitable online operations. Achievement varies; traditional advantages still exist, but execution and creativity are essential. All models require strong pre/post-purchase experiences, multi-channel integration (where applicable), data analysis, and supply chain mastery, alongside clear target identification.