NONSTORE RETAILING

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NON-STORE RETAILING
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AGENDA

• INTRODUCTION
• TRADITIONAL
• CATALOG
• DSO

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AGENDA

• E-CHANNELS
• MARKET POTENTIAL
• DEMAND SIDE GAPS
• SUPPLY SIDE GAPS
• COORDINATION

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INTRODUCTION

• Classic is BAM
• Alternatives
• Traditional
• Catalog
• DSO

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INTRODUCTION

• Classic is BAM
• Alternatives
• Electronic
• B2B
• B2C
• C2B
• C2C

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INTRODUCTION

• New
• Segments
• SOD
• SOS

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AGENDA

• TRADITIONAL
• CATALOG
• DSO

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TRADITIONAL

• Catalog
• Old
• U.S.
• 0.5 of Global
• lt.04 of U.S.
• 60 U.S. buys something each year

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TRADITIONAL

• Catalog
• SOS/SOD
• Break Bulk
• Variety
• Spatial Convenience
• Waiting and Delivery Longer

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TRADITIONAL

• Catalog
• Supply and Cost Issues
• Procuring Items
• Catalog
• Mailing List
• Lifetime Value of Customer
• Cost of Acquisition
• Revenue Source

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TRADITIONAL

• Catalog
• Supply and Cost Issues
• Order Fulfillment and Delivery
• Out-of-stock Costs
• Holding
• Lost Sales
• Returns
• 35

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TRADITIONAL

• Catalog
• Strategic Issues
• Internationalization
• Make or Buy
• Prices
• Product Selection
• Translation
• Maintaining Dual Channels

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TRADITIONAL

• DSO
• No
• BAM
• Catalog
• Personal Selling

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TRADITIONAL

• DSO
• Making Money on Multi-layer Marketing
• Margin
• Commission of Sales
• Commission on Distributors

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TRADITIONAL

• DSO
• Goods Sold
• Consumable Products
• Broad Product Lines

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AGENDA

• E-CHANNELS
• MARKET POTENTIAL
• DEMAND SIDE GAPS
• SUPPLY SIDE GAPS
• COORDINATION

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E-CHANNELS

• Market Potential
• Bounded by Access
• Homes
• Broadband
• Countries and Languages
• Demographics

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E-CHANNELS

• Market Potential
• Suggests SOD/SOS
•   timely
•   quality
•   high end

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E-CHANNELS

• Market Potential
• Constraints and Challenges
• Fulfillment
• Delivery
• Language
• Payment and Collection
• Security
• Privacy

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E-CHANNELS

• Demand Side Gaps
• Bulk Breaking
• Few Units to Many Addresses
• Make or Buy

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E-CHANNELS

• Demand Side Gaps
• Spatial Convenience
• Buying is Good
• Returns are Bad

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E-CHANNELS

• Demand Side Gaps
• Waiting and Delivery
• Viewing
• Download
• Physical

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E-CHANNELS

• Demand Side Gaps
• Variety
• Increased, at least theoretically
• Bots help

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E-CHANNELS

• Demand Side Gaps
• Customer Service
• Pre-transaction
• Transaction
• Post-transaction

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E-CHANNELS

• Supply Side Gaps
• New Costs
• Fixed
• BAM
• Web development
• Operating
• Delivery
• Maintenance

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E-CHANNELS

• Supply Side Gaps
• Initiatives
• EDI
• VMI
• Continuous Replenishment Programs

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E-CHANNELS

• Supply Side Gaps
• Flows
• Possession
• Units of one to many customers
• Fulfillment and Delivery

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E-CHANNELS

• Supply Side Gaps
• Flows
• Promotion
• Acquisition
• Maintenance
• Retention

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E-CHANNELS

• Supply Side Gaps
• Flows
• Negotiation
• Decreased in Some
• Increased in Others
• Risk
• Speculation Decreased
• Postponement Increased

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E-CHANNELS

• Supply Side Gaps
• Ordering Cost
• First Reduce Transaction
• Then Reduce Price

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E-CHANNELS

• Supply Side Gaps
• Payment and Collection
• Faster
• More Reliable
• Security

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E-CHANNELS

• Challenges
• Conflicts
• Domain
• Goal
• Perception

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E-CHANNELS

• Challenges
• Structure

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SUMMARY AND CONCLUSIONS