On-Point Links: May 27, 2016
This week’s top tech and marketing articles.
Retail Convergence
The death of brick-and-motor retail has been greatly exaggerated. Here are some signs of convergence in the retail space for all you retail hounds.
Entrepreneur: These Five Retail Innovations Could Actually Make You Want to Shop in a Store Again
“Major retailers such as Sears and Gap are suffering disappointing earnings and shuttering dozens of stores. Last week, Gap’s CEO said his company would be “delusional” not to start selling some of its apparel on Amazon and other sites. Photos of abandoned, dilapidated malls filled with plant overgrowth make the rounds online frequently as more closures loom. Macy’s sales in the first quarter of 2016 fell 7.4 percent from the same period last year, and many other stores have failed to meet even their bleakest expectations.
Meanwhile, online-first companies are opening brick-and-mortar storefronts, and 71 percent of people say they would prefer to purchase an item in a store if one was located nearby. Ecommerce is no replacement for touching and feeling a product before making a purchase — 85 percent of people value this option, according to TimeTrade. Many people prefer to shop in stores, but stores aren’t doing enough to meet their demands and rival the online experience.”
FCC and Zero Rating Controversy
Another angle on the net neutrality fight, zero rating may come to play a big role in the competitive broadband services market.
The Verge: Reddit and Other Web Companies Ask FCC to Reexamine Free Data Programs
“A group of companies and organizations that includes Kickstarter, Etsy, and Reddit have asked the Federal Communications Commission to take a stronger stance against “zero rating” programs that let broadband providers exempt specific services from data caps.”
“With zero rating, ISPs can make specific services more attractive by telling customers they won’t eat into their data allotment…. This isn’t a big deal for huge incumbents like Google, which has been fairly quiet in the net neutrality fight. It’s also less of an issue for wired broadband, where data caps are usually high enough that most customers won’t reach them. Even on smartphones, where data is more limited, it’s difficult to say whether (or how) it will hurt competition. But hypothetically, the practice could give new services an automatic disadvantage, making it harder for even a higher-quality new arrival to compete with an established one.”
Control in the Sharing Economy
Zipcar has hit a speed bump that other sharing-economy businesses can learn from. These new business models must provide a mechanism for the policing of the community.
Business Insider: Zipcar Customers are Becoming Disillusioned for One Troubling Reason
“The flaw that has so many customers complaining is that — unlike traditional outfits like Hertz — there’s nobody checking to be sure that customers lived up to that promise. And that means there are bound to be plenty of late arrivals and damaged or dirty cars, and none of the usual turnaround inspection and service between each rental.”
“Zipcar often only learns about an issue with one of their cars when the next customer calls to complain, while other overgrown “sharing economy” businesses like Airbnb or Lyft rely on peer rating systems to police users.”
What Do You Think?
Post Your Recommended Reads to the Comments Section Below!
