Zois Bouikidis
The rise of Amazon and other e-commerce companies has lead to a decline in traditional brick and mortar companies. Walmart has even changed many parts of its business and has increasingly started focusing on its online business in spite of the fact that it rose to dominance with its warehouse-like retail locations. However, we are seeing tech giants around the world start re-embracing brick and mortar retail with their own Silicon Valley twist. For example, in the United States we have seen Amazon introduce their Amazon Go stores, where consumers just walk into the store, grab what they need, and walk out. No register is involved in the process and the consumer’s balance is just added to their Amazon account and taken out of their credit card.
Across the world, China has seen a rise in these marriages between e-commerce and traditional retail as well. In fact, it can be argued that China is 2 or 3 years ahead of the United States in bringing e-commerce to tradition retail. Alibaba – Amazon’s Chinese counterpart – operates a Chinese grocery store called Hema which allows consumers to engage with the food they are buying, giving them the capability to scan food items to get information on it like recipes that include the item, or when the item was shipped to the grocery store. We also have seen an emergence of robot-restaurants that deliver food to tables using robots rather than servers.
The reemergence of traditional retail with an e-commerce twist is an exciting turn of events with a lot to offer. It will be interesting to see how this business model grows in the US. In China, there have been questions about the quality of the food in these places. Is this an issue that will arise in the US as well, or do our consumers have enough safeguards in place to assure this does not happen? I personally would be excited to see an Amazon Go, or a grocery store similar to Hema, start operations here in Philadelphia, and think it is a great way of engaging with your consumer during the shopping experience. As a business idea, it gives them a significant edge over their competition.
https://www.cbsnews.com/news/from-robot-restaurants-to-automobile-vending-machines-the-e-commerce-revolution-in-china/
I have a strong feeling that we will start to see retailers like this pop up in the US. The cashiers at grocery stores add very little value, especially as our society moves away from person-to-person interaction and towards self-checkout. Pair this with the increasing minimum wage, and it seems like a no-brainer to add these smart stores. I am interested to see how these places deal with security though. For stores offering more valuable items than food and drink, these could be a target for theft. But, if it makes my life easier and makes my trips to the store quicker, I’m all for it!
I agree with Drew, I do see the future of retailing as fully embracing this current trend. I think it would be super useful for everyone who carries a smartphone and can participate in these stores. What does concern me is that these stores rely so heavily on technology that there seems to be no backup. For example, Amazon Go stores do not accept cash for payment and in emergency situations that could cause a major problem for customers. As this segment of industry matures, I’m positive the companies will figure out all the kinks, and when this reaches mass adoptions it will be close to “perfect”. I am absolutely looking forward to seeing which company perfects the experience and ends up as a leader in this new segment offering.
I really like your post about the disruptive of innovation of e-commerce. I agree with what drew said. I believe that cashiers clerks will become irrelevant in the near future. A good example would be the amazon grocery store, where check out will be automated once you take that one step out of the store. Very well written post Zois.
I believe that the reemergence of traditional retail with an e-commerce twist is an exciting turn in retails. It can make customers’ shopping experience a lot more convenient and easy. Many businesses now are trying to enhance customer experiences by providing a sense of conveniency by utilizing technology. This trend is ongoing and I believe more and more of these stores will be opening in the near future. However, as mentioned above, I do think with stores like Amazon GO, which rely heavily on technology, should implement a cash payment in situations of emergency. I am also excited to see an Amazon Go, or a grocery store similar to Hema, start operations here in Philadelphia as well. Technology makes life easy!