Digital Winners & Losers: Instagram, Amazon, Nike, Sears (video)

The Amazon of 1886

L2inc.com video above published Oct 18, 2018: Professor Galloway's on his week's Digital Winners & Losers: Facebook's Instagram, and the company that taught us how to shop just got killed by the company that taught us how to shop online, and more. 

Some say Instagram shamelessly copied Snapchat’s popular Stories feature, nevertheless, Instagram’s simple design appears to be more appealing to users than Snapchat’s sometimes confusing user interface. Facebook acquired Instagram for $1 billion in 2012, and Instagram recently passed the 1 billion monthly active users mark:

source: statista.com

Sources:

(00:12) Source: Gartner L2 Analysis of CNN, TechCrunch, and Snap Data. 

(00:21) Source: “Facebook Will Soon Rely On Instagram For The Majority Of Its Ad Revenue Growth,” Recode, October 2018. 

(00:48) Source: “Amazon Raises Minimum Wage to $15 For All US Employees,” CNBC, October 2018. 

(01:24) Source: World Inequality Database. 

(01:24) Source: Mother Jones, 2016. 

(02:00) Source: “Sears Reshaped America, From Kenmore to Allstate,” Wall Street Journal, October 2018.

(02:05) Source: “The Rise and Fall of Sears,” Smithsonian Magazine, July 2017. https://bit.ly/2q0NOCo 

(02:34) Source: Macrotrends. 

(02:42) Source: “Amazon Takes a Page From Toys ‘R’ Us With a Holiday Catalog,” Bloomberg, July 2018.

(03:14) Source: “With Justin Gallegos Nike Brings Inspiring Dimension To ‘Just Do It’,” Forbes, October 2018.

(03:29) Source: “Justin Gallegos” video.r 2018.

Song: Everybody Wants To Rule The World by Tears For Fears

Transcript (unedited auto-generated):
00:00  a win our Instagram as Facebook
00:04  continues to take gut punches over
00:06  privacy breaches and its aging audience
00:08  the visual platform Instagram remains
00:10  unscathed
00:12  after neutering snapchat and making off
00:14  with its young Instagram is becoming
00:15  Facebook's rising star actually it's
00:18  pretty much already risen and projects
00:20  nine billion dollars in revenue for
00:22  Facebook this year
00:23  flashback Facebook bought in stuff for
00:25  just 1 billion dollars in 2012 and still
00:28  remains probably the best acquisition in
00:30  the history of tech Instagram is now
00:32  responsible for 1/5 of Facebook's
00:35  overall ad revenue and 38% of new ad
00:39  revenue by the end of 2020 Instagram is
00:42  expected to bring home 2/3 of Facebook's
00:45  new ad revenue a winner Amazon and let's
00:49  hope the middle class Amazon has raised
00:51  minimum wage to $15 for all US employees
00:54  and while some employees are complaining
00:57  that without stock awards and certain
00:59  bonuses they're actually making less
01:01  give credit where it's due
01:03  on the whole this is an impressive and a
01:06  smart move as everyone rushes to invest
01:08  in artificial intelligence the real
01:10  gangster move in retail is to invest in
01:13  organic intelligence a hopeful moment
01:16  for the economy and the middle class
01:17  that is largely missed out on the
01:19  incredible productivity gains over the
01:22  last 30 years middle class wages flat
01:24  despite trillions of dollars an
01:26  additional value created almost all of
01:28  it going to the top one or maybe top 10%
01:31  this is not only the right thing to do
01:33  but the smart thing to do is Amazon's
01:34  core asset is access to infinitely cheap
01:37  capital and this forces every other
01:39  competitor to go underwater with a
01:42  smaller tank of oxygen that is access to
01:44  capital and pay their employees the same
01:47  amount but as the labor markets tighten
01:49  this wraps up a key asset their labor
01:52  force and forces everyone else to follow
01:54  rest in peace sears tears for sears our
01:58  worst sears realize anyways iconic
02:00  former largest retailer in america has
02:03  filed for bankruptcy this week Sears
02:05  began as a mail order watch catalog in
02:08  1886 and GU to sell everything from
02:10  bicycles to sewing machine shipping
02:13  catalogs
02:14  nearly every home in the United States
02:16  at the turn of the century Sears taught
02:18  Americans how to shop similar to the way
02:20  Amazon has taught people how to shop
02:21  online millions learned about mail-order
02:23  shipping and return policies through
02:25  their Sears experience the company
02:27  emphasized customer satisfaction above
02:30  all else sound familiar
02:31  since its peak in 2007 Sears has shed 30
02:34  billion dollars in shareholder value and
02:37  200,000 jobs just as Amazon killed
02:39  Borders then opened its own bookstores
02:42  Amazon killed Toys R Us and Sears and is
02:45  mailing out a holiday catalog this
02:47  Christmas I will miss yours as a young
02:49  adult I used to go into the retailer
02:51  find a sales associate and in an
02:53  official sounding voice mutter code for
02:57  and housewares and just see what
02:59  happened and we leave you with a video
03:03  from the brand that probably has the
03:04  most wind at its back right now Nike
03:07  after their genius move endorsing Colin
03:08  Kaepernick helping drive sales and
03:10  increase their stock price Nike is back
03:13  at it they've endorsed 20 year old
03:15  runner Justin Gallegos their first
03:17  professional athlete with cerebral palsy
03:19  so let me preamp some of the comments
03:22  that will claim that this isn't an
03:23  authentic move because it's about
03:24  commercialism and making money the basis
03:27  of capitalism is the notion that as we
03:29  are pursuing economic security for us
03:31  and our families the good things happen
03:34  and this is a very good thing ....

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Digital Winners: Jeff Bezos & Amazon, Retail Like It's 1999 (video)

Retail Like It's 1999

L2inc.com video above published Dec 14, 2017: Scott Galloway on digital winners and losers:

Winner: Jeff Bezos. But as the Amazon founder becomes the world's richest person, who's losing?

Sources: 

(0:03) “Bloomberg Billionaires Index,” Bloomberg, December 2017.

(0:28) Credit Suisse. 

(0:33) “Sears And Kmart Are Closing 63 More Stores — See If Your Store Is On The List,” Business Insider, November 2017.
(0:35) “Sears’ Loss Narrows As Same-Store Sales Plunge,” Business Insider, November 2017.
(0:39) “Sears, Roebuck And Co.,” Chicago Tribune, April 1999. http://trib.in/2jVeZMm
(0:39) Yahoo! Finance.
(2:01) “9 Facts About Amazon’s Unprecedented Warehouse Empire,” Curbed, November 2017.
(2:01) “Amazon Global Fulfillment Center Network," MVPVL, 2017.
(2:18) “Amazon’s Ever-Growing Shipping Costs,” Statista, February 2017.
(2:25) “Employment, Hours, and Earnings from the Current Employment Statistics Survey (National),” Bureau of Labor Statistics, December 2017.
(2:32) “There Are 170,000 Fewer Retail Jobs In 2017—And 75,000 More Amazon Robots,” Quartz, December 2017.
(2:32) “Amazon Now Has More Than 500,000 Employees,” CNN, October 2017.
(2:32) “Amazon Soars To More Than 341K Employees — Adding More Than 110K People In A Single Year,” Geekwire, February 2017.
(2:41) “Calvin De-Kleins Retailers to Sell on Amazon,” L2, Inc., November 2017.
(2:52) “PVH’s (PVH) CEO Manny Chirico on Q3 2016 Results - Earnings Call,” Seeking Alpha, December 2016.
(3:17) “How Dollar General Became Rural America’s Store of Choice,” The Wall Street Journal, December 2017.
(3:17) “Net Sales of Macy's Inc. Worldwide From 2005 To 2016 (In Million U.S. Dollars),” Statista, 2017.

Transcript auto-generated via YouTube.com:
00:00 a winner Jeff Bezos who is now the
00:04 wealthiest person in the world he's been
00:10 criticized for not being more
00:11 philanthropic which in my view is total
00:14 BS just recently mr. Bazo spent almost
00:16 14 billion dollars trying to solve the
00:20 shortage of almond milk in Tribeca who's
00:22 losing retailers more stores closed in
00:25 2017 than during the financial crisis of
00:28 2008 one retailer shuttering stores
00:31 Sears dozens of stores after sales
00:34 plunged 17% in the third quarter in 1999
00:38 Sears had a market cap of 16 billion
00:42 meanwhile in July of 1995 from this
00:46 modest ranch house outside Seattle Bezos
00:50 sold his first book today he has five
00:53 huge warehouses in the United States and
00:55 Europe last year Amazon sold more than
00:58 600 million dollars worth of merchandise
01:00 over the Internet and Wall Street isn't
01:03 concerned that Amazon has never made a
01:05 profit not a dime in fact it lost a
01:09 hundred and twenty five million dollars
01:11 last year the company says it's
01:14 investing for the future skeptics say it
01:17 would have to sell every book being sold
01:19 in the world today to justify its stock
01:23 price I think my generation grew up with
01:25 Sears and Amazon is worth 20% more than
01:28 Sears is worth in market capitalization
01:30 how do you view that phenomenon that
01:32 Amazon today is worth more than Sears
01:35 investors are focused on the future
01:36 Amazon has growth potential that Sears
01:39 doesn't could Amazon Dundas tributaries
01:41 be flowing towards the shopping mall and
01:44 eventually drown it out today the market
01:47 capitalization of Sears is four hundred
01:49 and thirty million and Amazon is
01:51 approaching six hundred billion or
01:54 approximately fourteen hundred times
01:56 what Sears is worth an Amazon operates
01:58 75 fulfillment centers or put another
02:01 way there's an Amazon warehouse within
02:03 20 miles of half the US population and
02:06 some of those warehouses are shipping
02:08 more than a million items a day
02:10 meanwhile retailers are scrambling to
02:12 offer the same level of
02:13 but only Amazon can afford the seven and
02:16 a half billion dollar loss getting you
02:18 your kombucha tea within 47 minutes this
02:22 year there will be a hundred and seventy
02:23 thousand fewer retail jobs in the United
02:26 States but don't worry amazon added
02:28 fifty five thousand robots to its
02:32 workforce to win as a brand you have to
02:34 have an Amazon strategy and sometimes it
02:37 means distributing on the platform
02:39 Calvin Klein sells certain items
02:41 exclusively on the e-tailer and focuses
02:43 on selective high-volume low-cost
02:45 products and core replenishment
02:47 categories for example under we're
02:49 helping parent company PVH achieve 20%
02:52 digital revenue growth in the third
02:55 quarter of 2016 Levi's a brand that
02:58 missed the boat in the early part of the
02:59 millennium has rebounded with an Amazon
03:01 strategy focused on selling its core
03:04 product genes on the platform how do you
03:07 win as a retailer Dollar General one of
03:09 the most profitable retailers in the US
03:11 this year is winning by focusing on
03:13 where Amazon is not the low end market
03:15 its 14,000 stores more than doubled
03:17 Macy's profit last year on less revenue
03:20 and its market value exceeds that of
03:22 Kroger the largest pure-play grocer in
03:25 the country as other retailers close the
03:27 company plans to build thousands more
03:29 outlets in rural areas everybody is
03:33 looking for is silver bullets or some
03:34 sort of magic pixie dust to compete with
03:36 Amazon the first thing I tell boards
03:38 when asked how do we compete with Amazon
03:39 is unfortunately you'll lower your
03:42 profit expectations how do you compete
03:44 with a company that doesn't want to be
03:45 profitable bottom line you reinvest more
03:48 in the consumer experience we leave you
03:51 with a picture of mr. Beezus in 1999 and
03:54 one in 2017 we are exactly the same age
03:58 except one of us a is worth a hundred
03:59 billion dollars but more importantly is
04:01 aging in Reverse what what is going on
04:05 here I want on the program you're my
04:07 trainer boss I'm here New York Sports
04:10 Club we're talking isometrics we're
04:11 talking yoga I have one of those
04:13 machines you wrap around and jiggles you
04:15 up call me we'll see you next week
04:21 [Music]

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Retail Trends: Death of the Department Store, Is It Too Late? (video)

The Death of the Department Store

Bloomberg.com video published Nov 20, 2017: E-commerce has chipped away at the market share of storied retailers like Macy's, Sears, and JC Penney, but it's hardly the only reason the future for these stores looks bleak. Bloomberg Gadfly's Sarah Halzack explains what department stores are up against, and how they might revive themselves before it's too late.

One Retailer's Strategy: Target’s Plan to Win Big This Holiday Season

Target (domain: target.com) offers free shipping beginning November 1st, and most of its holiday assortment will be priced at under $15. Fortune.com video above published Oct 23, 2017.

Department store sales, which peaked in 2001, have been crushed by e-commerce. 16 years of inflation and population growth notwithstanding, department-store sales have fallen by 35%.

Brick-and-mortar sectors that are still considered “online-proof” or “e-commerce resistant”:

• New- and used-vehicle dealers and auto-parts retailers: 21% of total retail sales.
• Grocery and beverage stores: 12.6% of total retail sales. 
• Gasoline stations: 8% of total retail sales.
• Restaurants and bars: 12% of total retail sales

Total of above: 54% of all retail sales. 

Everybody else is "at risk." 

See also: Amazon discounts other sellers' products as retail competition stiffens | Reuters.com.

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