THE FUTURE OF “E-TAIL”: So this is interesting. Home Depot hasn’t opened any new stores in the last three years, yet their sales increased 7% in 2016 to an astounding $90B. How did they achieve this? They’re transforming into an “E-tailer”. More specifically they’ve committed to an Integrated channel strategy where both e-commerce and retail sales pillars complement one another. For example, 40% of HD’s online purchases are picked up by customers in store. And in reverse, many customers go online to look up store-level inventory of a product before making the trip to get it. It’s a model of synergy which combines the best of both sides of Retail into a lethal marketing machine. With success like this it’s no wonder that others (like the speculation of Amazon buying Macy’s), are looking to integrate their ecommerce platform with an existing B&M footprint. (link)
FCC TO THE RESCUE OF AM?: Ajit Pai, the new Chairman of the FCC, is charting a course to change many current media and telco regulations. This isn’t surprising given he was appointed by Trump while his predecessor was appointed by Obama. But what is surprising is Mr. Pai’s infatuation with saving the AM band (that’s right AM, not even FM). Why is saving AM his “personal priority”? The publicly facing rational is that AM provides a valuable public safety service – think of getting emergency info in a worst case scenario hurricane that’s knocked out internet and cellular services. While this scenario could happen, the frequency is so rare it’s hard to justify propping up an entire half of an industry for those times. I think the real motivation is to help radio broadcasters from losing the value of almost half their sticks if AM radio goes away. In the US right now there are roughly 11,000 commercial stations, of which 5,000 are AM. Of that number maybe 100-200 AM boomers in the large markets really matter. While the other 97% of AM stations are relegated to playing Classical music or NPR rebroadcasts. And this the is the media platform the FCC is prioritizing to save?!? (link)
WORK-LIFE BALANCE INTEGRATION: Finally this week I’d like to leave you with a very intriguing LinkedIn post which includes a new take on the age old challenge of Work-Life Balance. This comes from Spark-MediaVest’s EVP of Generational Intelligence Scott Hess, who many of us know as one of the great thought leaders in media today. Mr. Hess’s assertion that “Work-Life Integration” is the new Work-Life Balance, is a fascinating paradigm shift to think about. I believe his theory accurately explains why the lines of work and free time are being blurred by millennials who don’t see the two activities as binary and mutually exclusive. This is MANDATORY reading for all of you people managers out there, as it will help you gain an understanding of these new cultural norms. Great reading for the long weekend! (link)
Have a great Friday and holiday weekend guys! Be back on Tuesday.
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