The Future of Retail is the End of Wholesale ..................

**Chris Ryser** · 02-24-2016, 06:27 AM

Who is still going to be around in 2024 ? Interesting article dating from this month.

The Future of Retail is the End of Wholesale

TORONTO, Canada — Retail is facing a monumental problem that no one seems to want to talk about. It’s that the entire economic model of revenue and profitability for retailers and the suppliers they do business with is collapsing under its own weight and soon will no longer function.

Part of the problem stems from the continued pervasiveness of online retail. Global e-commerce increased by 19 percent in 2013 alone, a figure that was likely equalled or bettered in 2014. With those sorts of multiples, it’s entirely likely that upwards of 30 percent or more of the total retail economy will be transacted online by 2025.

Our dependence on stores to serve as distribution points for products is rapidly diminishing as digital media, in all forms, becomes remarkably effective at serving our basic shopping and distribution needs which, until recently, could only be fulfilled by physical stores. Now, just about anything we buy can be on our doorstep in a matter of days, if not hours, via a myriad of online shopping options.

continue reading ===========>
http://www.businessoffashion.com/art...-end-wholesale

What do you say ?

**Lab Insight** · 02-24-2016, 07:13 AM

Retailers will always remain in existence in the future. Although the e-commerce world is growing, just as the article mentions, it usually takes days to receive your goods. Retailers will continue to be able to provide the goods instantly from their in-store inventory at a higher price sure, but we already pay a premium for convenience each and every day, whether we realize it or not.

Why would we go out for dinner when it's cheaper to eat at home? Why would we have a beer at a bar for $8.00 when we can have a 6 pack for a couple more bucks? How about that tailored suit? That test drive? The demonstration of that new power tool before you purchase it?

It's called service and convenience. We all like things when we want them and will pay more when we can't wait. We also like to be pampered and feel we deserve that prepared steak with a lobster tail and glass of red to accompany it. It's human nature and for exactly this reason there will always be enough room in the marketplace for both retail and e-commerce.

Sure some retailers that haven't kept pace will fade away - and there's many in our industry. These changes will also develop a new crop of business minded e-retailers that are hybrid and can offer both methods under the same roof; it's already began. Consumers love options when spending money and not all are bottom feeders.

**Craig** · 02-24-2016, 09:20 AM

Chris,
Thanks for posting the article, it was very insightful and relevant to my world of retail and the wholesale role we are starting. This article hits the nail on the head and if you are an OD taking 80%++ insurance it will be a rough ride.
Time to get on the independent train and ride it while the wave grows. The timing for LenSync is here and we are going to deliver version 1.0 in less than 60 days; new name for the portal but able to create this retail transformation of the future.

**Lab Insight** · 02-25-2016, 07:16 AM

Originally Posted by Craig

Chris,
Thanks for posting the article, it was very insightful and relevant to my world of retail and the wholesale role we are starting. This article hits the nail on the head and if you are an OD taking 80%++ insurance it will be a rough ride.
Time to get on the independent train and ride it while the wave grows. The timing for LenSync is here and we are going to deliver version 1.0 in less than 60 days; new name for the portal but able to create this retail transformation of the future.

Respectfully, it's gonna take more than an app to save the day and here's why:

* Independents don't adapt to change easily
* Independents are strong minded entrepreneurs for a reason
* Independents don't think there's anything wrong when they're revenue is flat or declining
* Many old timer offices are still on paper files and don't even have or want computers, they think an app is an order of ahi tuna with wasabe
* Independents are very picky who they do business with and want a say where their order will get processed
* Independents on average deal with only one to two labs at any given time
* Independents like to hand pick their frame selection for their practices and want a large variety of styles and colours, but from few vendors
* Independents don't normally like cookie cutter solutions, even if it makes their lives easier

I've been doing business with independents for over 30 years and each independent is unique in their own way. There is no fast and hard way IMHO to convert and achieve instant results, unless you have millions to buy market share.

My advice is to:

* Do a mass marketing campaign to the 6000 or so independent doors in Canada
* Travel across across the country and attend the various trade shows
* Coordinate strategic regional information sessions by RSVP in local hotels
* Hire a full time sales rep

It's very costly yes, hence why not many companies have that size of marketing budget to do so.

**Craig** · 02-25-2016, 08:30 AM

What business do you have with the independents? Are you successfull working with non-independents?

**Chris Ryser** · 02-25-2016, 10:44 AM

Originally Posted by Lab Insight

My advice is to:

* Do a mass marketing campaign to the 6000 or so independent doors in Canada
* Travel across across the country and attend the various trade shows
* Coordinate strategic regional information sessions by RSVP in local hotels
* Hire a full time sales rep

It's very costly yes, hence why not many companies have that size of marketing budget to do so.

Very good advice ...........................

However all the trade shows are suffering these days. There have been too many in every corner of the world, for the last many years. The only one that still really counts, is MIDO in Italy.

In my own interest I have been betting on the internet and have concentrated on my website and gained local as well as some good international business that way for many years.

It is time consuming and quite a bit of work to make a good Google ranking so that your name pops up on page one or two, when your website has the right answer to a specific question.

This way I can reach around the globe in seconds if I make a correction or a change to one of my pages, and it is affordable.

**Chris Ryser** · 02-25-2016, 10:56 AM

Originally Posted by Craig

The timing for LenSync is here and we are going to deliver version 1.0 in less than 60 days; new name for the portal but able to create this retail transformation of the future.

Craig............congratulations.

I hope you will be successful and make good sales with it.

Just do not forget that the internet is one of the most powerful mediums when done the right way.

**Craig** · 02-26-2016, 08:12 AM

Originally Posted by Chris Ryser

Craig............congratulations.

I hope you will be successful and make good sales with it.

Just do not forget that the internet is one of the most powerful mediums when done the right way.

We are using the internet as our friend and will drive business back to the independent! Wait and see the plan unfold in 2016 with the consumer getting to choose what they purchase as opposed to be sold something.

**Lab Insight** · 02-26-2016, 05:36 PM

Originally Posted by Craig

What business do you have with the independents? Are you successfull working with non-independents?

Lens affiliated vendor/owner, practice & business consultant. Successful in all B2B aspects.

**Chris Ryser** · 03-03-2016, 02:15 PM

Originally Posted by Lab Insight

Sure some retailers that haven't kept pace will fade away - and there's many in our industry. These changes will also develop a new crop of business minded e-retailers that are hybrid and can offer both methods under the same roof; it's already began.

Consumers love options when spending money and not all are bottom feeders.

You are right, not all of them are bottom feeders.

However in the eyeglass business the e-commerce has the intention of increasing their business by at least 10% this year and that looks like the increase of sales online is going faster from year to year.

The chains are getting larger and larger by taking over the stores of older opticians that are retiring, and more and more are selling one pair of glasses and or the second one for a lot less or nothing.

Being a good, quality minded and experienced optician, used to be a license to a a good and decent way of living, but I strongly believe that the on-line opticals have on goal in mind, of becoming optical grave diggers.

**Chris Ryser** · 04-07-2016, 03:29 AM

My winter office is a converted old tool shed attached to the house, not connected to the central air conditioning.

So the, a few years old air/heating floor unit quit on me.
Home depot where I bought it, was sold out and would only have some in a couple of weeks.

I called Amazon who had a better unit for a lot less than Home Depot would have charged and for an additional $ 26.00 they would deliver it next day.

Ordered on a Thursday and by Friday at 11.00 am, UPS delivered the 100lb unit to my door.

**Lab Insight** · 04-07-2016, 05:21 AM

Originally Posted by Chris Ryser

My winter office is a converted old tool shed attached to the house, not connected to the central air conditioning.

So the, a few years old air/heating floor unit quit on me.
Home depot where I bought it, was sold out and would only have some in a couple of weeks.

I called Amazon who had a better unit for a lot less than Home Depot would have charged and for an additional $ 26.00 they would deliver it next day.

Ordered on a Thursday and by Friday at 11.00 am, UPS delivered the 100lb unit to my door.

The title of this thread does not correspond here. Internet retailing is just another platform to sell to the end user, but certainly does not eliminate wholesalers in its entirety and never will.

**Chris Ryser** · 04-10-2016, 01:49 PM

Originally Posted by Lab Insight

The title of this thread does not correspond here. Internet retailing is just another platform to sell to the end user, but certainly does not eliminate wholesalers in its entirety and never will.

..............not quite the case. Internet sellers are big volume buyers and get factory direct prices similar to the ones wholesalers pay, Pa&Ma opticals who have supported their regular wholesalers from frames, lenses and other supplies are buying less.

Any wholesaler works with a fix markup and suffers when the turnover drops due to internet sales because the purchased quantities are going elsewhere.