Monday’s Musings . . .

RETAIL REDOUX:  Traditional Retail is undergoing a transformation as we speak.  For the pessimistic set the term for this is Retailpocalypse, where most B&M retailers will eventually die off and be replaced with eCommerce rivals.  But if you erase the lines of physical and digital retail, you get a much more vibrant view of where Retail is headed.  Business Insider does a nice job of cataloging 25 retailers who are changing the game in the attached link.  Not surprisingly, eCommerce giants like Amazon (#1) and Wayfair (#17) are on the list.  But so are B&M mainstays like Ulta (#2) and TJ Maxx (#3) – these guys are thriving by defining a niche and competing better than anyone else is their swim lanes.  Or what about the German grocer Lidl (#6), who aims to disrupt the US grocery industry by offering mostly private label products at up to 50% off the brand names.  And finally, think of tech publishers like Instagram (#8) and Apple (#13), who are redefining how retail trends are socialized and how the ensuing purchases are made.  So no, Retail isn’t dying.  But the game, and the definition of what it means to be a “Retailer”, is changing before our eyes.

SNAPCHAT’S STRUGGLES MOUNT:  Once the darling of Social digital, Snapchat is starting to find itself squeezed from all sides.  Instagram has poached users by successfully cloning some of Snapchat’s most compelling features, and ad revenue growth is becoming trickier as clients go “one and done” on the platform because they can’t track results from their initial campaigns.  All of these challenges have been noted on Wall Street.  In a fairly startling move, Snapchat’s IPO underwriter Morgan Stanley has already downgraded the stock below its IPO price.  Think about that for a minute . . . your own investment bank who brokered your IPO shares just this past March has already downgraded you!  And then there’s a more subtle but insidious problem facing Snapchat.  Content publishers are migrating to Instagram because its more lucrative for them.  Unlike Snapchat, who segregates publisher content in their “Discover” section, Instagram includes 3rd party content in their “Stories” feature and even allows links to external sites within the content.  These publisher-friendly features make it easier to monetize content placed on Instagram than Snapchat.  And as you know, publishers’ resources will always follow the money.

WHY ROGER FEDERER KEEPS GETTING BETTER:  Yesterday, at the age of 35, Roger Federer won his 8th Wimbledon Men’s Singles Championship and his 19th overall Grand Slam title.  Beyond the sheer number of wins, the remarkable thing about this is Federer’s ability to stay at the top of his sport for the past dozen years.  So what makes him so good?  Some of the answers can be found in this article from the tennis site 138mph.com.  Their hypothesis is simple.  While Federer starts with many of the ingredients needed to succeed (natural skill, commitment to fitness, mental toughness, etc.), the thing that sets him apart from the competition is his willingness to adopt his game to the situation.  As he’s aged Federer, like everyone, has gotten slower afoot.  So he’s less likely to hang in there through long points where he must run all over the court – for contrast think Raphael Nadal.  Upon realizing this Federer decided to alter his game by striking the ball earlier on the return and playing closer to the net.  The result is an aggressive style where the ball is literally on top of his opponents before they can react.  How is this change working?  Not only does Federer continue to win, but he’s actually separating from this competition.  In this year’s Wimbledon tournament he didn’t lose a single set in seven matches (that’s 21-0 in sets).  So what can Roger Federer’s dominance teach us in the business world?  For me it’s that no matter how old you are or successful you’ve been, you must be willing to reinvent yourself to fit your current situation instead of just relying on what’s made you successful in the past.  If you can do this you just might release your inner-Federer!

Have a great Monday guys!

63 thoughts on “Monday’s Musings . . .

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