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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Digital Winners and Losers: What Winning Brands Have In Common (video)

What Benjamin Button and Winning Brands Have In Common

(Editor's note: Please note language in video at 2:37 to the end may be offensive to some readers.)

Video above published on Feb 23, 2017 by L2inc.com:  NYU Stern Marketing Professor Scott Galloway on digital winners and losers:

Winner: Firms whose products become more valuable with use--SalesForce.com, Facebook.com, Amazon.com, Priceline.com, Redhat.com, TripAdvisor.com, Alphabet (Google.com),-- a trait shared by most of today's top-performing companies. In contrast, old-economy successes including Ford and Caterpillar produce items that decline in value.

Winner: Facebook Messenger. With a third of Americans on the platform, brands that haven't yet launched chat bots may be missing a major opportunity.

Loser: Twitter. Despite the engagement boost from Trump's controversial missives, the platform barely gained any monthly users in Q4 - prompting Twitter to start counting daily users instead.

Plus: does (Netflix) cheating count when the other person is asleep?

Unedited Transcript via YouTube.com:
0:00  a winner the Benjamin Button economy
0:04  that 13 companies in the S&P 500 beat
0:07  the S&P average five years running
0:10  showing that we are in fact in a
0:11  winner-take-all economy what is Benjamin
0:15  Button companies have in common they age
0:17  reverse their products become more
0:19  valuable with use every time you're on
0:22  Facebook the core platform becomes more
0:24  useful when you turn on ways it adds
0:26  additional utility to people's traffic
0:28  patterns yesterday's economic Titans for
0:31  Procter & Gamble caterpillar produce
0:34  products that decline in value
0:35  perishable with use the other group of
0:39  terms that are winning are the ones
0:40  caring for the ages specifically firms
0:42  that are cutting costs for old economy
0:44  firms we have two sets of winners
0:47  companies that age in reverse and those
0:50  that are caring for the ages a winner
0:52  facebook Messenger I don't nothing about
0:54  messenger if you have any insight into
0:56  the platform please message me on
0:58  another platform with one in three
1:00  Americans using facebook Messenger
1:02  one-in-three the platform represents a
1:05  major opportunity for brands eighty-one
1:07  percent of brands we track Adele to
1:08  allow customers to message the brand on
1:11  Facebook the most brands have not tapped
1:13  to the message was real potential just
1:15  2% are leveraging chat BOTS early
1:19  adopter sephora is using box so
1:21  customers can book in-store appointments
1:23  mcallen spots help users choose a
1:26  whiskey and bud light spot reminds users
1:28  when it's time for a beer during begin a
1:31  loser Twitter despite the engagement
1:33  boots from Trump's controversial missus
1:35  Twitter angel 2 million monthly users in
1:38  comparison facebook increased by 72
1:41  million what you do in the metrics don't
1:43  go your way
1:44  change the metric following snapchats
1:46  lead twitter now reports daily active
1:49  users and their fourth quarter earnings
1:51  call Twitter highlighted its daily
1:53  active user base increase of eleven
1:55  percent year-on-year while monthly users
1:57  only grew four percent
1:59  however unlike snapchat the firm has not
2:02  disclosed its total number of daily
2:04  users a continued winner netflix we
2:07  believe will be the fifth Horseman
2:09  almost half of couples who watch netflix
2:11  together have cheated on each other by
2:13  watching episode ahead of their partner
2:15  according to a new survey 25-percent of
2:18  cheating happens when one partner
2:20  faultlessly however half of respondents
2:22  they sleep cheating doesn't count i have
2:25  connected my uber app to my amazon alexa
2:27  to my network now and when it says play
2:30  next episode
2:31  I just need to run and automatically a
2:34  guy named hey-zeus takes a person next
2:37  to me and their sh*t away from me within
2:39  seven minutes or just thirteen dollars
2:41  and fifty eight steps
2:43  Who am I kidding i watch netflix alone i
2:47  do get lonely one of my most alone when
2:49  do I feel most alone when I'm around
2:52  other people who are total f*cking
2:54  idiots will get you now
2:59  [Music]

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Winners: Snapchat; Amazon; Google | Losers: Costco; Sam's Club; Fashion

Scott Galloway: Innovation is a Snap:

NYU Stern Marketing Professor Scott Galloway presents this week's "biggest winners and losers in digital"--

Winner: Snapchat. No longer just an app, the company aims to reinvent the camera with Spectacles, its new hardware product. Domains: snap.com, snapchat.com, spectacles.com

Loser: Warehouse clubs like Costco and Sam's Club, which are rapidly losing share to Amazon Prime. Domains: costco.com, samsclub.com, amazon.com

Loser: Fashion insiders. As brands adopt the see now, buy now format and post on Instagram and Snapchat, fashion executives need to keep pace with the changing times.

Winner: Google, which recently celebrated its 18th birthday. Domain: google.com

Video above published Oct 13, 2016, by L2inc.com.

Auto-generated transcript via YouTube.com:
0:00 a winner snap chatters they like to be
0:04 called snap inc no longer just a nap
0:07 the firm is releasing a hardware product
0:09 called spectacles spectacles lets users
0:12 snap with the push of a button
0:14 chief strategy officer in Ron contoured
0:16 advertiser's last week that snap bank is
0:19 not a social media company but a camera
0:21 company he believes the reinventing the
0:23 camera is snaps greatest opportunity
0:26 with a price tag ten percent that of the
0:29 predecessor google glass it's easy to
0:31 see that snap-in gets its users the last
0:34 24 months have been a constant march of
0:36 innovation from the good people at
0:38 snapping concluding geo filters discover
0:41 lenses chat and memories losers
0:45 warehouse clubs in the past four years
0:46 the share of us households only paying
0:49 for a costco membership decline from 15
0:52 to ten percent remember subscribing only
0:54 to sam's club plunge from 17 to ten
0:57 percent at the same time the percentage
0:59 of amazon prime only subscribers has
1:01 more than doubled from seven to sixteen
1:03 percent what a shocker is Amazon
1:06 creating havoc with these guys prime is
1:07 also benefiting from a new trend of
1:10 households joining multiple retail clubs
1:12 forty-four percent of u.s. households
1:13 are amazon prime members think about
1:15 that if cord-cutting continues in five
1:18 to eight years they'll be more
1:19 households in america with a membership
1:21 to amazon prime then have cable
1:23 television a loser fashion insiders
1:26 after Milan Fashion Week vogue editors
1:28 called fashion influencers and bloggers
1:30 pathetic and said they were heralding
1:33 the death of style neiman marcus blame
1:35 bloggers for the past year falling sales
1:37 but who's the real loser here
1:39 fashion retail executive stuck in the
1:41 past who aren't angry at bloggers but
1:44 angry themselves in the world because
1:45 bottom line they're becoming less
1:47 relevant who's into fashion
1:49 Jack Dorsey Marissa Mayer who's not mark
1:52 zuckerberg you do the math a hundred
1:54 percent of brands showing at Fashion Week
1:56 had an Instagram account and seventy
1:59 percent were on snapchat a fifth of
2:00 brands and integrated the new director
2:02 consumer seen out by now
2:04 runway format the devil used to wear
2:07 Prada what does she wear now no one
2:09 gives a shit a winner google in
2:12 September 27 this
2:13 search engine turned 18 so Google
2:16 congratulations you can drive you can
2:18 buy a bullet bike you can serve your
2:20 country join the army
2:22 you can buy a gun but you can't drink
2:23  that makes sense with a market cap of
2:25 541 billion google is second only to
2:28 apple and value the google doodle was
2:31 launched in august of $YEAR 98 a month
2:33 prior to the company's incorporation the
2:35 first doodle inserted the Burning Man
2:37 symbol behind the OS a subtle out of the
2:40 office message is the two founders
2:42 headed to the festival the most popular
2:45 doodle the playable guitar published in
2:47 june 2011 and 48 hours 5.1 million years
2:52 of music was created we leave you with
2:54 some of our favorite Google Doodles
2:56 we'll see you next week
3:15 ok
4:01 proud to announce l2 glass
4:18 subscribe now
4:20 I said what's your problem


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Jet.com Deal: A $3 Billion Acquihire Botox Shot For Walmart? (videos)

Is Walmart's Jet.com Deal for $3B a 'Desperate Move'?

Wal-Mart Stores Inc. agreed to buy e-commerce startup Jet.com Inc. for about $3 billion in cash, giving the world’s largest retailer the resources for a stronger shopping website to compete with Amazon.com Inc., the online market leader. Bloomberg's Jeffrey McCracken reports on "Bloomberg ‹GO›" August 8, 2016.

"If Jet.com was called Yellow.Online instead, do you think it would have sold to Walmart for $3 Billion?"--Andrew Rosener via DomainInvesting.com.

Jet.com: The $3B Hair Plugs - WARNING: Professor Galloway uses profanity

Who are the winners and losers in Walmart's (walmart.com) acquisition of Jet.com? Published August 9, 2016, by L2inc.com. Scott Galloway is a NYU Stern Marketing Professor. 

Transcript via YouTube:
0:00  yeah
0:01  most powerful instinct of survival in a close second is propagation will mate
0:09  with younger women because the more fertile we want to mate with young women
0:12  because they're more fertile and women want to mate with men who appear to be
0:16  the strongest such as their kids their offspring have a greater chance of
0:20  survival so guys like me will spend a lot of money on glasses and a ridiculous
0:25  amount of money on a shirt with a collar such a 51-year old professor can look 50
0:29  and seven-eighths again what we had yesterday was the ultimate three billion
0:34  dollar Botox shot in the form of walmart acquiring jetdotcom three billion
0:41  dollars this was always about a sale this company never made any sense is a
0:45  distinct standalone company it started as a membership model and pivot is that
0:49  was not working and then began spending 25 million dollars a month on
0:53  advertising when you're a startup and you start spending tens of millions of
0:57  dollars a month on branding that is latin for this company makes no f__ing
1:02  sense and this one never did as a standalone entity the firm has dynamic
1:06  pricing which is a technology asset that claims to score millions of algorithms
1:12  in order to optimize warehousing and shipping to maximize margins there are
1:17  some big winners and losers here the first big winner is obviously jetdotcom's
1:22  investors and mr. lure investors were likely noxious every time they left the
1:26  board meeting seeing the amount of money this firm was burning through jet com
1:30  was the 50 cent of e-commerce get rich or die trying' one was bound to happen
1:35  soon however walmart blinked first and executed what will go down is the most
1:40  expensive aqui-hire in history
1:43  it's not about the revenues walmart doesn't care much about the $MONEY
1:46  billion dollars in incremental e-commerce revenue to add to their 15
1:50  billion it's about mr. Lore and his team Mr. Lawrence a big winner adds to his
1:55  pocket reportedly 750 million dollars and will now have deeper pockets to
2:00  plant traffic with some big losers as well specifically walmart ecommerce team
2:05  walmart management said effectively as my dad did to his third wife IE my mom
2:10  I've outgrown you and
2:12  moving in with a much younger flight attendant I met on the pan am flight to
2:15  Puerto Vallarta she makes me feel young again
2:18  dust off your resumes walmart ecommerce employees this is walmart saying no it's
2:23  not about me it's about you
2:25  this is yet another blow to the advertising industrial complex will miss
2:28  the 25 million dollars plus jet com was spewing into the echo system trying to
2:33  build a brand I think walmart marketing people are much more discipline at this
2:37  also a huge win probably the biggest win for jet com's banker who did a masterful
2:43  job convincing walmart management there was another potential buyer here there
2:47  wasn't there has always been just one and only one exit or buyer only two
2:53  firms have the balance sheet to pull this off the other being amazon and the
2:57  Seattle firm was likely sick of giving mr. Lore money to hang out for three
3:01  years and then go compete with them so Walmart gets wrinkles to disappear from
3:06  their analog forehead for about six months and jet dot com founders and
3:10  investors get a huge return consumers will also benefit as Walmart will pursue
3:15  youth at the expense of their shareholders who could reasonably ask
3:19  okay but three billion dollars for a Corvette and hair transplant
3:25  really
3:29  yeah

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Dating Apps, Winners, Losers, Traditional Advertising No Longer Works

Goliaths vs. Innovators

Video above: Scott Galloway, NYU Stern Marketing Professor. Video published July 28, 2016, by L2inc.com.

• Loser: Established CPG [ConsumerPackaged Goods] companies. Brands like L'Oréal Paris and Gillette are rapidly losing share to smaller, more agile rivals skilled at maximizing search visibility.
• Loser: Specialty Retail brands who email too much. Retailers sent 15% more emails in Q1 2016 than during the holiday season, but the resulting open rates proved that sometimes less is more.
• Winner or loser? Parents now spend less on food, transportation, and clothing than they did fifty years ago. However, childcare and education costs have soared.
• Who's winning in dating apps? Match Group, which owns 64% of the app ecosystem, including OKCupid and Tinder. 

Transcript:

A loser: established CPG [consumer-packaged goods] brands. 90 of the 100 largest CPG brands in the US lost share in the past year and two-thirds registered sales declines. The reason? Traditional advertising no longer works. Who's winning? Smaller brands with agile product innovation that digital - specifically search - rewards.

Two examples: NYX, who outperforms L'Oréal Paris 3 times in organic search visibility despite only bidding on 129 terms, versus 60,000 terms for L'Oréal Paris or Harry's, who in 5 short months jumped from number 9 in organic search visibility to number 3 as Gillette fell to second and Amazon secured the top spot.

So what's going on here? In sum, the diligence vehicles of Amazon reviews and Google search make it easier to connect you and the right product without having to default to the safety of a brand.

A loser: Specialty Retail brands who email too much. If your inbox feels overwhelmed, that's because it is. Retailers sent 15% more emails in Q1 2016 than during the overwhelming holiday season. But more isn't always better. With each additional email campaign, open rates declined by 15 basis points. Asking consumers explicitly and implicitly for additional information - such as you can customize the content and the email - is a winning strategy.

Everyone knows raising a child is expensive, but the complexion of that cost has changed dramatically in the past 50 years. I've told both my sons they need to start pulling their weight. Lorde wrote a Grammy-nominated song when she was 13. My kid at nine still lets the bath overflow - even when he's in it. Parents are spending less on food, transportation, and clothing but childcare and education costs have surged, accounting for a fifth of parental expenses - a big change from 1960, when they were just 2%.

The most affordable place in the US to raise a child? Morristown, Tennessee, where a family of 4 can meet their basic needs on $50,000 a year. That's half the required income necessary to raise a family in New York or Washington, DC.

Dating apps: winners or losers? By the way, my nickname around here is Swipe Left. It depends which one you're on and what you're looking for. Let''s look at some of the data.

• Tinder is the most popular and Happn has the most daily engagement.
• Christian Mingle has the highest proportion of women.
• Grindr has the lowest churn rate and eHarmony has the highest.

But who really wins? Match Group, which owns 64% of the dating app ecosystem.

I can save you some money. This is literally a fail-safe way to approach women. You walk up. Scott. Scorpio. Never fails.


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Amazon, Apple, Facebook, Google, Winners, Losers (video)

DLD15 - The Four Horsemen: Amazon/Apple/Facebook & Google--Who Wins/Loses - 

Passionate trademark analyst Scott Galloway on The Four Horsemen: Amazon, Apple, Facebook, Google. (Published on Jan 20, 2015)

Hat tip: Lefsetz Letter: "... in tech you admit your mistake and pivot. And I could poke holes in a number of Galloway’s theses, but his presentation is so stimulating... tech is where the action is...."

Domain Mondo says: "In tech you either admit your mistake and pivot OR you die."

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New gTLDs, Winners, Losers, Rod Beckstrom, Kurt Pritz, ICANN (video)

Rod Beckstrom: Consumers will choose the "winners" and the "losers"

Blast from the past (published on Aug 18, 2012): Rod Beckstrom, CEO and President of ICANN, and Kurt Pritz, Senior Vice President of ICANN, discuss establishing a broad array of new generic top-level domains.

ICANN Floods the Market -- That's a competitive marketplace! And of course, we now know ICANN compromised Internet stability and security with the new gTLDs.

Hell of a way to run the global Internet DNS!

But remember, for ICANN, the new gTLDs (new generic Top-Level Domains) were never about what is in the public interest, instead, it's all about the money!

And the sad thing is, it didn't have to be this way--

"INTA favors the alternative single, shared registry model, propounded under the gTLD Memorandum of Understanding (MoU), with the registry operating on a cost-recovery basis and with competition between registrars. Under this model, the new corporation [ICANN] would be empowered to manage the gTLD name-space as a public resource, would be able to take its decisions in the wider public interest and would not be involved in the dubious practice of granting proprietary monopolies to commercial enterprises to control individual gTLDs. The single registry model is also much preferred for dealing with disputes. Instead of having to deal with different dispute policies in different jurisdictions, businesses and challenged domain name holders would have a single consistent policy and jurisdiction would be clearly determined." (emphasis added) Source: INTA Response to the U.S. Government Paper ["Green Paper"] on the Improvement of Technical Management of Internet Names and Addresses (pdf) (1998)

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