If you frequent our blog, you know we only share timely and relevant retail and commerce articles. We also wanted to share a little background on the company, NewStore that brings you The Mobile Retail Blog - we promise no sales pitches, just honest answers!
The Editor of The Mobile Retail Blog sat down with NewStore Board Member, Scott Galloway to discuss omnichannel, the digital future for retail, and why he joined the board.
The takeaways from our recent discussion with Scott demonstrated some of the many reasons why he's a thought leader in this space. As Clinical Professor of Marketing at NYU Stern School of Business, Scott has been named one of the World’s 50 Best Business School professors. He’s an accomplished entrepreneur and founder of several successful companies including L2 (a subscription business intelligence firm serving prestige brands), Red Envelope (an ecommerce firm), and Prophet (a global brand strategy consultancy).
Scott’s in-depth experience with ecommerce, along with his future vision for mobile, is a huge benefit both for NewStore and its partners. We asked Scott a few questions about “why NewStore” – and what he thinks the future of omnichannel commerce looks like.
Question: Why did you decide to join the NewStore board?
Answer: Stephan Schambach is a proven leader and I want to be associated with bright entrepreneurs. Plus, the concept of NewStore in terms of building a mobile native ecommerce platform is compelling. Stephan has always been able to surround himself with smart people, and the team backing NewStore at General Catalyst are great people that are nice to work with. I have belief in Stephan and belief in the concept.
Q: What is the opportunity for NewStore?
A: Every time there is a new technology that’s native to the platform it’s revolutionizing – whether its search desktop, visual, mobile – the technology that is native to that shift typically has an easier time gaining traction. For example, WeChat and Instagram are native visual – and mobile – platforms. As the web has become more visual and is moving to mobile, they have increasingly done really well. Ecommerce platforms that were born on a desktop are going to have more difficulty adapting to a mobile world. Any “point-of-purchase” technology born in-store is going to have more difficulty transitioning to PC or mobile. The opportunity that NewStore has created – to develop a native commerce platform that originates from mobile – is a huge advantage in itself. Being born of the mobile medium makes a big impact. I predict many companies will be born on a mobile phone and disrupt in-store innovation.
Q: What do you think of NewStore’s leveraging of crowdsourced delivery models?
A: If you were to look at the companies that have become unicorns the fastest – that is, companies that have reached a billion dollars the fastest, or almost any company that has added tens of billions of dollars in value over the last five years – they have one thing in common: leveraging other company’s content or assets. The potential to create astronomical unicorn-like returns to shareholders, stakeholders and employees, is often your ability to leverage other content or assets in a way that is value-add to them, and a value-add to you – in a way that you don’t have to pay for it. Google leverages other organizations’ content, Facebook leverages other people’s pictures, Airbnb leverages real estate they don’t own and Uber leverages their driver’s cars. Incorporating some sort of leverage through other company’s assets is a key strategy, particularly in the demand economy.
Q: Why do you think retailers will benefit from NewStore?
A: The omnichannel future is one of the few innovations in digital that has a direct link to our lives. There is a lot of excitement around social media, but it is very difficult to connect social media to actual purchases. It’s the same with great content and programming online – it is difficult to reverse engineer those assets into an actual purchase.
Omnichannel is one of the few digital innovations that allows retailers to have direct attribution analysis. When retailers offer shoppers more options to unify online and offline experiences, they actually stand to gain from a profit perspective. Retailers who only offer online transactions – separate from the store – lose more per sale when items are returned. Conversely, retailers who offer online purchases with pick up and return in store lose less per returned sale.
Omnichannel works. Omnichannel increases spend. The issue is how do we get there?
If you're interested in learning how a new breed of retailer is extending brands and footprints to fit anywhere into a customer's life, download Omnichannel Commerce in the Mobile Age.