growing margins & loyalty in a price transparent world€¦ · confidential © 2016, 360pi...
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CONFIDENTIAL
© 2016, 360pi Corporation. All Rights Reserved.
Growing Margins & Loyalty in
a Price Transparent World
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Outline
• About Us
• Trends
• Strategies
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360pi Team
Alexander Rink
CEO
Joleen Wroten
Sr. Retail Strategist
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Who We Are
Profitable insights for retailers and brands.Customers
Partners & Integrations
Recognized By
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TRENDS
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E-Commerce
$0
$100
$200
$300
$400
Web Sales(US$B)
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Shoppers Trending Online
• Web-impacted retail sales will account
for 55% of total sales by 2020.
• 71% of shoppers believe they will get a
better deal online than in stores.
• Generation X spends $561 on average
online, 15% more online than Generation
Y who spends $489.
• 62% of Millennials know what they want
to buy through online research
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Amazon’s Endless Aisle
All Products:
• All Sellers > 419M
• Amazon as the Seller 15.9M
• Unique Sellers ~217K
Office Products:
• Office Products – All 6.2M
• Amazon 333K
• Unique Sellers ~40K
• Unique Brand Names ~60K
14% increase from May
3.8%
5.4%
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BU
LK
FU
RN
ITU
RE
TE
CH
/EL
EC
TR
ON
ICS
BREAKROOM SUPPLY
SE
AS
ON
AL
INK
/TO
NE
R
AC
CE
SS
OR
IES
GE
NE
RA
L S
UP
PL
Y
ORGANIZATIONAL
CL
AS
SR
OO
MPA
PE
R
BAGS
More than Amazon
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What About B2B?
• US B2B eCommerce will grow from $780 billion in 2015 to $1.13 trillion in 2020.
• Forrester forecasts that 1 million US B2B salespeople will lose their jobs to self-service eCommerce by the year 2020 (4.5M to 3.5M.
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Amazon’s Price Dynamism
Labor Day
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Back to School Pricing Gap
Labor Day
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Electronics Price Gap to Amazon
Labor Day
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Amazon in Office
$0
$20
$40
$60
$80
$100
$120
2012 2013 2014 2015
Revenues - Amazon vs Staples(US$B)
Amazon Staples
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STRATEGIES
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Know Thy Self and Thy Customers
Define your identify and brand.
Choose your target market. Understand your customers and their needs.
Establish your offering and pricing strategy with identified key products and categories.
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Know Your Market – Retailers
• Competitive Pricing
• Sales/Margin Opportunities
• Sales/Margin Threats
• Zone Pricing
• MAP Compliance
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Know Your Market – Brands
• Market Presence
• Share of Shelf
• MAP Compliance
• Promotion Compliance
• Content Compliance
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Differentiate Your Assortment
• Private Label
• Variants
• Bundles
• Pack Sizes
• Services
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Curated Product Lists & Event Pages
Powered by 360watchlistTM
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Think Creatively About Pricing
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Content Matters
• Rankings in search engines (Google)
• Ratings and Reviews– 70% of global consumers indicating they trust online
reviews (Nielsen)
– 84% of Millennials say consumer-written content on brand sites influences what they buy (Bazaarvoice)
• Photos and Videos– Photos increase conversion 20-100% (Kiss Metrics)
– Video viewers 1.7x more likely to purchase (Website Magazine)
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Service, Service, Service
• Installation, Returns, Technical Support
• Relationship (e.g. birthday cards)
• Proactive fulfillment
• Subscriptions
• Outsourcing
• On-site
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Consider Marketplaces
Pros Cons
Retailers • Test and Learn
• Endless Aisle
• Unverified Sellers
• Control over
Experience
Brands • New Channel
• Increased Sales
• Test B2C Models
• Brand Dilution
• Private Label Risk
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Last One! Brands: Consider D2C
• Increased sales
• Increased margins
• Risk diversification
• Broader product assortment
• Increased customer engagement and
loyalty
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Inspiration
• Ace Hardware (expert, local service, relationships)
• Build.com (curated collections, analytics)
• Hayneedle.com (increased marketing, product count)
• eBags (category expertise, private label)
• Chewy (subscription model)
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Thank You!
www.360pi.com
Sign up for insights and reports on our website:Amazon Holiday Insights
Google Shopping vs Amazon
Marketplaces Report
Back to School Report
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Product Overview
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Competitive/Channel Price Intelligence
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Price History
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ThreatMap
Powered by 360insightsTM
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Zone-based Pricing
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Same, “Like”, Equivalent Matches
• Same shoe
– Unique product identifier
• Equivalent shoe
– User determined based
on found attributes
• “Like” shoe
– Scoring based on title &
description
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MAP Compliance
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Report Writer
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Real-time Browser Request
Google Chrome
browser extension
Mobile app with text &
barcode search
Desktop browser interface API to PoS or call center app
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Easy to Use Real-time API
Drive Conversions | Increase Revenues | Protect Margins
For call centers, store associates, and merchandisers.
Google Chrome
browser extensionRetailer custom app with
text & barcode search
Desktop browser interface PoS or call center integration
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Brand Recommendations
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Product Recommendations
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Brand Market Presence & Share of Shelf
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Final Words