Tony D'Onofrio
Blog
Several milestone events over the last thirty days have crystalized in my mind the three critical skills that will guarantee your future success.
Listen
Technology is leading to an explosion of ideas on which to build a solid business. Ninety percent of the world's data was generated in the last two years and this trend is accelerating. Every minute of the day, YouTube users upload 72 hours of new video, Facebook users share 2.5 million pieces of content, Twitter users Tweet 277,000 times, and email users send 204 million messages.
The information noise around us is endless and it will increase. Critical to progress is identifying the most important listening posts. In all careers, success starts and ends by closely listening to the customer.
- Details
Is Technology Today's Answer?
A Lowe's video this week on their first deployment of a robot in a retail store to enhance customer service sparked this blog post. The 
narrator stated that shopping in a retail store has not changed in the past 100 years. On multiple levels he is correct.
Summarizing the fundamental changes to the retail industry in the last 100 years:
The invention of the supermarket which started the journey to retail sub-segmentation and self-service. The cash register which introduced data as an important element to measure the success of the business. Mass production and the computer which allowed manufacturers to drive production efficiencies, better information on what is selling, and lowered overall cost of goods. The bar code as the first item level visibility technology and the consequential explosion of retail chains in major industrialized countries. Globalization which proved that consumer markets do not have national boundaries.The Retail Paradox
The retail paradox is very simple.
- Details
A World of Retail Opportunities Ahead
Attending the India Retail Forum (IRF) a few weeks ago, absorbing the vibrant energy of the attendees, and listening to the insightful 
presentations was a great reminder that these are exciting transformational times for the global retail industry. As summarized in the last post, driven by consumer technology, retail disruption will increase and will include a few surprises from emerging markets such as India.
The India Retail Opportunity
The retail sector in India has reached more than $500 billion in industry sales. Organized retail which today is at 8% penetration will grow at more than 20% during 2012-2020. The retail industry has contributed consistently 18%-20% to the country's GDP. Food and grocery is the largest category with the retail sector with 60% share, followed by apparel and telecom.
- Details
Last week had a chance to speak to a large audience at the India Retail Forum in Mumbai. Chairing an industry panel discussion, my 
contributions included an opening presentation to a session titled "8th WONDER IN RETAIL - FUTURE PARADIGMS AND TECHNOLOGIES THAT HAVE THE POWER TO CARRY OUT DISRUPTIVE INNOVATIONS". Summarizing key insights from the opening presentation:
4th Megatrend Reshaping Global Retail
Post World War II, retail has been re-shaped by four megatrends. Technology has been the driver of retail power shifts through each of four megatrends. The fourth retail megatrend had its origins in 1992 when IBM released the first smartphone. It started transforming retail with Apple's smartphone around 2010.
Complementing smartphones are emerging deployments of smaller / smarter store sensors that will lead to customized, higher value, improved shopping experiences. All four megatrends have been about the availability of data and its effective utilization. The fourth megatrend places retail power in the hands of the consumer.
The Pace of Change is Accelerating
- Details
A recent Forbes article highlighted the following key takeaways from Tesla's latest quarterly results which beat expectations:
Battery Breakthrough
Major improvements are expected in batteries, including a pure lithium anode that might triple battery capacity in the future. The new Gigafactory batteries will have 10%-15% better capacity due to improved chemistry. The new factory will also reduce costs by at least 30%, allowing Tesla to deliver the much less expensive $35,000 Model 3 by 2017. CEO Alan Musk expects that within the next 10 years electric cars will reach cost parity with combustion engines.
Car Production
Car production continues to increase and Tesla expects to deliver 35,000 cars during the current financial year. Tesla's goal is to reach a run rate of 100,000 cars per year by the end of 2015. Next spring, Tesla will release the Model X crossover SUV. Musk expects selling as many units of the new model as the current Model S. The CEO noted that they already had a lot of orders for the Model X, despite buyers having not seen the vehicle.
- Details
"It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, 
it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way - in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only." - Charles Dickens
Over the last couple of weeks have been contemplating the subject of creating a lasting family legacy. When does one start thinking about creating a legacy? Is legacy simply the wealth possessions you pass on to your children? Why do leaders ponder their post existence legacy and even try to shape it? Should you aspire for a personal, family, or business legacy?
- Details
Couple weeks ago Inditex, one of the world's largest apparel retailers, went public with their Zara deployment of item level RFID. Pablo Isla, the chairman and CEO, announced that Inditex has already installed RFID at more 700 stores in 22 countries and will complete the rollout of the Zara brand (nearly 2,000 stores) by 2016.
Loss prevention technologies are playing a key role in the deployment of RFID at Inditex. Included in the rollout are dual technology RFID / EAS hard tags, dual technology RFID / EAS point of sale detachers, and a hard tag global re-circulation program.
The Inditex announcement coincides with a ChainLink retail research study on RFID published earlier this year. The top three reasons identified by retailers for deploying RFID included loss prevention in stores, item-level/on floor replenishment from back-stock, and cycle (inventory) counts in stores.
- Details
By 2018, the smart home market will reach $71 billion, more than double the $33 billion in 2013. Eighty percent of the current market is 
driven by entertainment. By 2020, other research points to a $1.7 billion market just for light controls and $1.4 billion for automated thermostats.
This month Time magazine dedicated their cover to a special report on "The Smarter Home". According to Time, the following companies will control your future smarter home:
Tech Titans
Apple - With iOS 8 this fall Apple will release the Apple Homekit. Say "bedtime" to Siri and your Philips internet bulb will turn off.
Google - Followed up $3.2 billion purchase of Next (smart thermostats / smoke detectors) with acquisition of Dropcam (web enabled security cameras.
- Details
Latest Retail Shrink Data / Why Do People Steal? / New Technologies
In 2012-2013, global retailers 
lost $112 billion to shrink or 1.4% of retail sales on average. The top 5 countries with the highest shrink as a percent of sales included Mexico, Brazil, Argentina, USA, and China.
This past week, Jack L. Hayes, published his 26th annual USA Retail Theft Survey. Highlights of this latest report:
- Details
The Apple Innovation Model - $7 Billion in 2003 to $171 Billion in 2013
Several recent articles were a great reminder that with the accelerated pace of technology adoption, all business models can be
quickly disrupted. Global mobile connectivity, virtual marketplaces, social media, and bypassing linear technology adoption approaches are a few of the trends reshaping the current global economy.
To access a broader market, innovative companies are breaking apart traditional value chains in legacy businesses and targeting higher margin niches to faster growth.
The Industries Apple Could Disrupt Next
"Apple has seemingly served as an anomaly to the theory of disruptive innovation. After all, it grew from $7 billion in 2003 to $171 billion in 2013 by entering established (albeit still-emerging) markets with superior products — something the model suggests is a losing strategy."
- Details
Sponsored Content
Top 3 Weekly Essentials
Chain Store Age
Business Insider
Harvard Business Review
It is a Small World
“Even monkeys can fall from their trees.” – Japanese Proverb
Continuing our global learning journey, our next stop is Tokyo Japan. Founded, in 1603, this city was once a small fishing village called Edo. In 1890, it became Tokyo which means Eastern Capital in English.
In Tokyo, you will find the world’s busiest intersection, the Shibuya crossing where 2,500 people cross the intersection, every time the lights turn green. This city also holds the record for the most Michelin starred restaurants at 212 places to enjoy amazing food.
Tokyo is the most populous city in the world with 37 million people. Uniqueness is everywhere, even in vending machines, where you can buy hot meals, fresh produce, and even umbrellas. There is one vending machine in the city for every two people.
Have lost count on the many times I visited Tokyo to experience their modern retail industry. This picture is from the New Otani Hotel gardens, a favorite during multiple visits.
As the Japanese proverb that opened this summary reminds us, no matter how accomplished we become, you can always make a mistake. Overconfidence can lead to missteps. Life is one sweet ride and Japan provides many reminders on how to enjoy it.
Categories
Brilliant Research
Deloitte Global Retail Outlook 2024
After a prolonged period of suppressed consumer spending, macroeconomic and geopolitical uncertainty, and rapid changes in consumer behavior (among other things), the global retail industry stands at a crossroads; forced to make decisions about long term investments in new technology and business models while at the same time managing the rising cost of doing business and a decline in the spending power of consumers. - From Deloitte Insights Read more
Smart Infographic
The World's Top Flight Routes by Revenue
In 2024, a record 4.7 billion people are projected to travel by air—200 million more than in 2019. While revenues surged to an estimated $896 billion globally last year, airlines face extremely slim margins. On average, they made just $5.44 in net profit per passenger in 2023. Today, the industry faces pressures from high interest rates, supply chain woes, and steep infrastructure costs. - From Visual Capitalist
Insightful Videos
The World Ahead 2024: five stories to watch out for
From the biggest election year in history, to how to control AI and even taxis that fly, The Economist offers its annual look at the world ahead. Read more
