Sleepless in Seattle Where American internet entrepreneurs comment

The rescue of Seattle was the arrival of Amazon to the city center. Expedia, Starbucks and Microsoft all have their head offices outside the city, half an hour drive from the city. Amazon chose to settle in the city and as a result right away to bring a lot of life in the city. The rescue for Seattle, without more, suddenly became the city attractive again for live, work and shop. Maybe this is search for a social platform, a social environment, the challenge for every entrepreneur?

With a mixed feeling at the end of the week it was just picked up. There was not really anything new. The feeling was that we do not all that bad in the Netherlands. Of course Americans talk about when we talk about millions, billions, but it's also 20 x larger. A conversion-calculate how soon learned that the success of America in perspective with it falls. The many success stories forget that there were many more failures are, yet. There was a consensus on the trends and structures and that was without worth more worth the visit. Realised during the week that there is still a lot to happen. There comes a new wave of innovation, a change that can affect every aspect of our lives, this change is called Alibaba. In my last newsletter I already ripped off a corner of the veil on Alibaba.

Where last year nobody was talking about Alibaba there was now great uncertainty. What can happen and what's going to happen? For the first time America was lost on developments in internet and the direction that makes uncertain. All speakers agreed that the Chinese are busy internet again to find out. Another view and other structures, which are extremely successful. Alibaba makes profit with this new course of action and finally new vision. During each interview was the question: Where you lie awake at night by? It was, after all, Seattle! It came two aspects: Alibaba and customers (behavior). The central themes that also control our trip went.

Last year, there was suddenly a change of course at Amazon. After a long period of profit were the blinkers. Investing went for profit. Last september it was announced that there would be new markets intensively and that there is a strong focus came on fast delivery. Netherlands also was more or less taken as a country that remember would be, if only because of the tax incentives. All signals point out there now that Amazon will come within a few weeks in Netherlands. Meanwhile there is a strong focus on logistics. No longer a long wait, but "next day delivery" is seen as normal, with a strong need for "same day delivery". Amazon wants to go to a new market only if it is supported by a good collaboration with logistics service providers to realize. In England is already 100 million invested in new warehouses and a fast service. Netherlands also has a tax advantage for Amazon able to settle here. The impact of Amazon on e-commerce and retail in whole cannot be underestimated. But Amazon is not threatening to other shopping sites (like Amazon.com), but internet sales are stimulated by Amazon! Stores have to adapt!

Americans talk a lot about Amazon and Jef Bezos, founder and CEO. There is respect but perhaps also hatred, envy. Amazon has a high completion percentage of staff so that everyone in Seattle called Amazon as ex employer has on his or her CV. Amazon has become the norm of disruption; sets the standard, the rest follows. Perhaps that is also called the merit, paving the way for all e-commerce followers. Because by Amazon is the acceptance and confidence in the internet great. In the slipstream walk all those other companies, also in Netherlands. Watch, learn and apply what Amazon is doing and what successful failed: "lessons learned". Increasingly indicated that Amazon is not so much a threat to e-commerce companies, quite the contrary. That benefit from the acceptance of e-commerce for their own business. Amazon is threatening to shops. This year, 45,000 stores closing in America. The principle of optimal focus on customer service and low prices, proved to be a golden formula is at the cost of high street stores. But also the stores can benefit from Amazon by joining their market place. Of course there should then be a Commission paid by an average of 10%, but it's a good driving force to generate cash.

It was totally not talked about the losses from Amazon. Why should it also? The stock price leaves a resistant growth, the market is still growing with "double digits" and confidence in e-commerce is great. In addition lead to investment growth. These investments are also taken, whereby the loss as operating loss a bit has been cost. The vision, that there should be especially focused on growth was expressed by everyone, only after the growth go focus on efficiency: cost reduction and profit increase. A "tipping point" where every business owner is looking for. The tipping point from growth to profit, certain right away the "sale" ability of the enterprise. Several "serial enterpreneurs" talked about the companies, which they had set up and had sold after the tipping point was reached. Amer Greaves have a huge strong focus on money making, that we ask ourselves if they still sober Dutch life.
Examinations indicated (Sham) security

As part of this money making is the need for knowledge and certainty in size. Never before I heard on a Congress so many figures from surveys. Each figure was used for the own advantage or as the basis for the chosen strategy and presented as the truth. The Americans are also not tedious. It was done no further validation of the tests. Most investigations are of dramatically bad level, where you really can know no value to it. For instance, there was a (Dutch artist) who showed that the developments of e-commerce in the various countries. The success of America was almost tranentrekkend. We recognized us not into these figures, on inquiry appeared to be only the convert of electronics on the internet, while the internet was presented as a convert. That was situated in the same place as Denmark Netherlands we also forgive them but then. But each and every conversation went on to introduce some research.

The study population, the calculations, the underpinning, things did not matter if the figures but exactly knocked at the presented vision. Yet, despite the lack of validation and despite further substantiate these investigations were now leading the way and left often see the same trend. This was valuable. See below for a list of figures.

Physical retail

Not, of course, let the existing retailers by sitting. Stores remain important and leading in retail, but should be adjusted. In addition to the 45,000 shops that close, including 15% of the malls their doors. It's getting harder to draw people to centres and shops if no changes are made. These adjustments exist in America only from technological applications is the conclusion after spending a week Seattle. Like the selection of the chosen companies, it was maybe at the chosen theme of the Congress, but technological applications and successes were predominant in all the contacts, maybe it's also known as typical American, focus on those issues where they are leading. Despite the large growth of the internet, most purchases made in the shop continue to take place. Only it will no longer be the classic stores with a counter and sales personnel. The integration of technology will provide less and less staff store inventory, but more integration of technology. Examples were on display at the shop Hointer where the leading smartphone is in the buying process, also in the fitting room. Self search for the right size and the right accessories, while going through the store runs or in the fitting room are. The chosen garments come via a hatch. The owner tries to copy this Amazon, but now in a physical store. (She too was ex-employee from Amazon).

But always there was the talking point of this trip, the impact of or the Chinese Alibaba Web shops in particular. The comment that China is going to invent again the application of internet and restructuring also puts the Americans thinking. Of course disruption is also difficult in America, that initially showed Amazon though, and now so Alibaba. Why all the separate websites, so that search engines to bring order and structure to come again? Why should the customer picture with all the problems and irritations that this entails. Search for information, comparison, best buy addresses, payment facilities and all choices for pizza home delivery. Tricky, complicated and unnecessary according to Alibaba. Line this just in an integral platform and you have a "one stop does all" facility. Just on one site (Alibaba) look, choose, compare, buy and pay for it. Alibaba controls everything, but does not produce itself. Alibaba combines all the providers that the buyer needs. Alibaba facilitates only and is therefore a "connector" pure sang.

Only Amazon (again) seems to be successfully made a further expansion of units and a strong control on logistics. This also explains in part the success of Amazonfresh, fresh articles via refrigerated freight cars; can be delivered quickly. Of course, apply the American circumstances, many frozen, few greengrocers and a different pattern of consumption. But still, connectors and aggregators have a future because consumers no longer have to search the Web, the work is already done for him or her. Last year we could not predict that there is suddenly a new player would come, that this does successfully in China for 15 years. Not a webshop running, but running a platform in which all Web shops and suppliers can join. A Commission between 8% and 12% is a good business model for everyone. In addition, the unprecedented domestic and unprecedented opportunities to produce at low cost: a giant is born. For the first time attacked the Americans on their home country and that's troublesome. Many providers also spoke about the opportunities that China offers for their companies, even passing to the fact that many companies already had their teeth piece prayers on Chinese culture and regulatory environment. They also ignore the potential possibilities of Alibaba in America.

That is where Jeff Bezos awake now by: Sleepless in Seattle

On the offices should not be spoken on Alibaba, investments with unprecedented power intensified and there is a lot of pressure on innovation in any form; Logistics first. The rest of America is watching this fight is going to survive, pending how Amazon Jeff Bezos as Savior of e-commerce in America?

Perhaps we have heard nothing new during this trip, but many trends are confirmed:

1. Mobile applications are essential to survive and to have contact with customers.

2. Mobile is the new platform! The new competition comes from platforms, marketplaces, theme and Association driven. This is a "reinvention" of the internet. China is leading in, US runs far behind on this development.

3. Make profits should again, but investing must: first market growth than profit!

4. There was totally no longer talked about Facebook, but rather about the impact of social media and the impact on buying habits.

5. Shops continue to dominate in the future, but need to adjust very quickly by investing in technology, new services and mobile applications.

6. Should the cost of shops down ! The number of visitors takes off quickly, the goal of the visit changes (showrooming) but still the receipt amounts rise strong.

All in all an inspiring journey with many answers, a new vision on the internet and a new perspective of opportunities for Web shops, internet service providers and physical retailers.

Sleepless after Seattle!

Comments about Amazon and Alibaba

Amazon

Alibaba

-All focus on customers and processes -Fully data driven -Strong focus on innovation -Work in small teams -Everything in "real time experience", no batch -Strong development in additional services such as Web services -Customer Growth, experience and low cost/price proposition -Strong mobile strategy as flywheel Focus: fall to the existing world with a better proposition -Cooperation with providers by providing a platform. -Strong focus on Christmas sales Impact especially on physical stores

-All focus on connections -Focus on needs and possibilities offer Chinese customers (small providers) -Integrated platform -No own stocks -Close cooperation with providers by connecting (connector) -Integration of social media and payment facilities. -Instant live support during buying process -Different platforms for different users (BtoC and BtoB) -11 november (single day) busiest day on internet in the world! Impact especially on Web shops

Figures quoted from "investigations"

Amazon	40% of all business (ship and sold) goes through affiliated providers Growth in US and international 18% 24% per year 74 billion turnover: 29% 14% 5% international, technology services, advertising
Alibaba	Sell through T-mall 300 billion 100 million buyers per day 40% of online Chinese also buy online
Development	36% of the retail sales are influenced by social media grows to 52% in 2018 growth bricks & clicks 25% pj Growth online only retailers 17% pj be loaded per minute 41.667 photos on instagram Online revenue in 2018 414 billion worldwide Alibaba, eBay and Amazon are good for 90% of the internet business 90% of sales through a market place in China place Sell: mobile en 16%, United States 19% 38% 37%, Africa, Asia, world-wide 25% (last year 14%) 40% of online Chinese also buy online, US 85%, UK 80% 60% of the emails are opened on a mobile device 49% of the shop sales are influenced by online (especially technology and toys) 16% uses a pick up in the store as this is offered 25% does this sometimes 31% of sales of Toys "R" us is omnichannel A smartphone is on average 150 times per day
Physical retail	Stores will always remain dominant in sales despite high growth e-commerce The future is in hybrid shops, integral application of internet in stores and when shopping. Closer cooperation between supplier, retailer and customer Market places offer many opportunities for retailers (click and collect) Shop visit is between 2010 and 2013 halved, but store sales increased by 13% (online 57%) Amount per shop visit increased from $ 17 to $ 42 now: So more aware visit! Shop more often source of information (5% visitors in 2010, 2013 12%) Dynamic pricing 12% in 2010, 2013 50% Embrace price comparison, but show added value A Zara customer visits the store average 12 x per year Return on invested capital (ROIC) rising sharply as the stores are more digital: look, see, touch, but order online (in the store) and let the articles delivered. Facebook does not cause more visits to the website. 75% of expenditure in Retail happens near 14% of internet sales is done in a shop 54% of the visitors in the shop wants to use an interactive mirror

Some notable statements

Amazon is obsessive about customers and customer experience

What is the flywheel of your company?

Retailers are good in vendor contracts and have to grow new capabilities

CEO do not understand completely different markets or market changes

Take the complete customer journey as your brand not only the product

The art of marketing is lost online

Retailers need a single technology platform for physical and online (virtual) shopping

Experience online will drive the sales in the future

Alibaba will disrupt Amazon

Amazon will attack shops not webshops

Alibaba will attack webshops

Never be afraid to fail

Online shoppers because selection, value, convenience and confidence

First there were websites, than search engines, now search engines (marketplaces) then websites

Marketplaces are not necessarily the model for US like in China or Japan.

Embrace price comparison but show added value

Technology will change the expectation or consumers

The present retail model is just moving goods around the world

Physical stores have to change quickly to stay in business

Retail is storytelling

Invent your own future by copying Amazon