Electric Thoughts in a Digital Era - A blog on eCommerce, Social Commerce, Marketplaces & Business

Everything is Resilient

I listen to earnings calls often and sometimes read transcripts, but over the last four months, most calls seem to contain the word resilient. “The consumer is resilient” seems to have become the catchphrase that explains the second quarter. What is resilience, and why am I not buying it?

The consumer is resilient, but what about brands?

What does resilient mean? According to the Cambridge Dictionary, “the ability to be happy or successful after something difficult or bad has happened.” Globally, we are in an election year (US, India, South Africa, and many other countries), which always makes markets uncertain about the future. When market uncertainty is further defined, it generally shows volatile pricing and supply and demand inconsistencies, which directly impact business strategy and profits.

Learnings from the Last Two and a Half Years

It has been two and a half years since my last newsletter. The e-commerce world increasingly feels equal to dog years – a lot has changed. What are the major learnings I have had.

Learnings A to Z

Amazon is still a misunderstood channel for brands. Yes – you read that right. There are still brands that either are unaware of the channel or are just not interested in selling on the marketplace. A decade ago, I was one of those idiot consultants who thought that brands should not be on the channel. Really? Over the last two and half years – the numerous times I saw Amazon being the largest and fastest-growing channel for brands. Consumer packaged goods believe that the deck is so stacked against them that Amazon is not worth the effort. Really? What are we doing here?

Should Digitization be the North Star of Commerce?

If you work for or with brands, one realizes fast that these businesses are in trouble. The amount of brands that have their business in tune is akin to finding chicken teeth. Small, medium, or large companies have blind spots that they might not know about, impacting their survival. Whether it’s called digital transformation, digitization may provide the enormous opportunity available of our lifetime.

Marc Andreessen famously wrote that software is eating the world. The reality is the use of legacy technology, unclear business models, unwillingness to use technology leads to inefficiency, unprofitability, and irrelevance.

Digitization - The commerce North star — Is Digitization the North Star for commerce?

The Realities For Brands

Last weekend I watched an episode from History Channel’s The Food that build America on how Hershey’s battled Mars, Kellogg’s fought Post Toasties. The irony is a hundred years later; brands still have significant challenges to exist. My boutique consulting business Blue Cape Ventures, has ensured that I speak to brand executives in various sectors.

The past three years have changed my perception of how brands should manage short to medium goals. Brands of all sizes are in different stages of pain which no-one wants to talk about due to fear or concerns that they are in the minority.

The reality for brands - they cannot read the room or sitaution.

2021 Stories I am following

History will show us that 2020 was a year in which consumer behavior, commerce, and trade changed. Businesses of all sizes faced challenges at a scale not seen prior the World War 2. What does 2021 have in store?

If 2020 is a yardstick, 2021 will continue to speed up e-commerce adoption worldwide. If you run a business or manage a brand, the next six months in develop markets or 18 months in developing markets are critical.

2021, a new year that rhymes with 2020 — Source: Medium