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Manifesto Metailer V1.0 WEB

Manifesto Metailer V1.0 WEB

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Published by Michael Ross

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Published by: Michael Ross on Oct 07, 2012
Copyright:Attribution Non-commercial

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02/12/2014

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Manifesto fora metailer
Metailer:
noun:
Early 21c. (implied in metailing),a customer-centric merchant who blends maths andmagic. A metailer combines the traditional skills of abrand owner with that of a retailer.
Michael Ross– Co-founder and Director, eCommera
 
2Manifesto for a metailer
Retailer:
 
noun
: mid-14c. (implied in retailing), from Old French.
retaillier
“to cut off, pare, clip, divide,” from re- “back” + taillier “tocut, trim” (see tailor). Sense of “recount, tell over again” is first recorded1590s. The noun meaning “sale in small quantities” is from early 15c.
The ‘re’ in retail reflects thetraditional model in whichretailers first purchased fromwholesalers or manufacturersand then resold productsdirectly to consumers within aspecific catchment area.Today, with so many brandowners selling direct and somany retailers with own-brandproducts, ‘re’ is losingits relevancy.
The distinction between retailers and brandowners is blurring. Retailers are becomingbrand owners (think John Lewis televisionsand Biba at House of Fraser); and brandowners are becoming retailers (think Apple andBurberry). Although the speed of change remainsuncertain, we are clearly at an inflection pointin the evolution of retail. From both a businessand consumer perspective, retail will look verydifferent in the future.At the heart of the change is the movementof retailing decisions from the store to theindividual: location, location, location is givingway to customer, customer, customer. TheInternet has transformed the way consumersshop and disrupted the symbiotic distributionrelationship between retailers and brand owners.For both to succeed in this new world, theyneed to learn from each other and, in manyways, become more like each other. In theprocess, they must rethink some fundamentalaspects of their business.Emerging from the maelstrom of convergingretailers and brand owners will be a completelynew type of player – the metailer. This paperexplains the real scale of change driven by theInternet, and offers some principles to make theleap into metailing:
How the Internet is changing the retaillandscape
How the Internet is changing operating models
The emergence of the metailer, and guidingprinciples for success.
1
Online Etymology Dictionary. http://www.etymonline.com/index.
 
3www.ecommera.com
How the Internet is changingthe retailing landscape
Retail is not just in another period of evolution– we are experiencing a fundamental shift of theentire landscape, driven by the global scale andpopularity of the Internet. The new reality is:
Unshackled customers.
No longer dependenton their location, consumers now have accessto an almost unlimited set of brands andproducts. For most categories, consumers arevoting with their mouse; online is now a largeand growing part of the retail mix.
Empowered brands.
Brand owners no longerneed to rely on retailers and can now adopt aradically different distribution strategy basedon a combination of online, flagship storesand selective wholesale distribution.
Challenged retailers.
The effects for retailersare mixed: 
The Good news…
greater access to morecustomers. Traditional retailers are takingtheir operation online to benefit from accessto customers outside the catchment area of their physical stores. 
The Bad news…
more competition. Thefight for customers is just heating up withbrands selling direct, international retailersand small shops all competing for customers.This is made worse by restricted access tosome products as brand owners reduce theirwholesale activities.
How the Internet is changingoperating models
Physical retail is characterised by a set of wellunderstood activities and an established profitmodel. Today, operating models are having toadapt to:
New activities.
Online introduces a completelynew set of retail disciplines– from managingpaid search on Google, to optimising searchresults on a website, to managing fraud. Theserequire completely new skills – pretending theyare simply new ways of doing traditional retailis not a recipe for success.
New costs.
The fixed costs of offline retail havebeen replaced with a set of variable and semi-variable costs – from picking and packing anddelivery, to returns and marketing, all of whichtransform the profit model.
The changing retail landscape

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