RICHARD FLETCHER FOODSERVICE ONLINE DEPLOYING THE KIND OF TECH - - PowerPoint PPT Presentation

RICHARD FLETCHER FOODSERVICE ONLINE

TRENDS, TECHNOLOGY AND TALENT FOR THE 2020S

“DEPLOYING THE KIND OF TECH USED BY AMAZON & THE DATA ANALYSIS UNDERTAKEN BY SOFTWARE GIANTS”

LUKE DICICCO, IN-CUMBRIA

“RICHARD’S METEORIC RISE IS AS REMARKABLE AS IT IS INSPIRATIONAL”

NEWSQUEST

MODERN LOYALTY?

WHAT IS

KEY TAKEAWAYS:

• WHY MODERN LOYALTY IS SO IMPORTANT?
• WHAT IS THE PLATFORM REVOLUTION?
• WHY IT’S THE MOST EXCITING TIME EVER TO BE IN WHOLESALE

AUDIENCE SURVEY:

WHO IN THE AUDIENCE TODAY DOES NOT USE AMAZON?

9 OUT OF 10 BRITS USE AMAZON

• 9 OUT OF 10 OF BRITS USE AMAZON
• 70% SAY AMAZON IS THE FIRST PLACE THEY GO
• 59% DESCRIBE THEMSELVES AS “LOYAL” TO AMAZON
• 51% “ASSUME” AMAZON ARE THE CHEAPEST

(MINTEL)

AMAZON IN THE UK

• BRITS ARE SPENDING OVER 2.5M HOURS A WEEK ON

AMAZON.CO.UK

• 62% OF 16-24 YEAR OLDS IN THE UK SUBSCRIBE TO

AMAZON PRIME

IN 2017, 80,000 SELLERS JOINED AMAZON IN THE UK ALONE.

220

PER DAY

• 44% OF ALL ECOMMERCE SALES
• 24% OF ALL RETAIL GROWTH
• 60% MARKETPLACE SALES VIA 3RD PARTY SELLERS
• 70% SHARE OF THE VOICE MARKET
• MORE PEOPLE HAVE PRIME THAN A LANDLINE PHONE

AMAZON IN THE US

• $233BN SALES IN 2018
• GROWN BY $200BN IN LAST 8 YEARS
• INCLUDING $55BN IN 2018 ALONE

AMAZON’S GROWTH

IN 12 MONTHS THEIR COMPANY’S VALUE INCREASED FROM $400BN TO OVER $1TN

AMAZON’S VALUE

• BUILT 418 NEW FULFILMENT CENTRES IN 4 YEARS
• THERE ARE 40 FULFILMENT CENTRES IN EUROPE
• 17 FULFILMENT CENTRES IN THE UK WHERE THEY HAVE

INVESTED £9.3BN IN INFRASTUCTURE SINCE 2010

• PRIME THROUGHOUT THE UK, GERMANY, FRANCE, SPAIN

AND ITALY FROM ONE ACCOUNT

AMAZON INVESTMENT

• INCREASED FROM 30,OOO TO 560,000 IN 8 YEARS
• 255 NEW RECRUITS PER WORKING DAY
• 27,500 EMPLOYEES IN THE UK

AMAZON EMPLOYEES

“ AMAZON IS WINNING LARGE ORGANISATIONS ” “ TOTALLY DISRUPTING THE SME SECTOR WHICH

HAS BEEN A CASH COW FOR DISTRIBUTORS WITH LARGE SCALE FIELD SALES DEPARTMENTS ”

(MIRAKL & FORRESTER)

“ AMAZON IS DOMINATING US FOODSERVICE “

LISTED FOOD & BEVERAGE WHOLESALE AS ONE OF THE CORE CATEGORIES MOST AT RISK, SPECIFICALLY SYSCO, US FOODS & PERFORMANCE GROUP

“ WE WOULD SEE A CONTINUED DIRECT AND

MEASURABLE FINANCIAL IMPACT ”

IN 2017 WE HEARD FROM PRENTIS WILSON (NOW VP OF AMAZON BUSINESS) THAT:

“ AMAZON WERE COMMITTED FOR THE LONG-TERM TO

SERVE EDUCATION AND GOVERNMENT ORGANISATIONS ”

AMAZON & THE PUBLIC SECTOR

• AMAZON ARE WORKING ON THEIR OWN DELIVERY NETWORK
• AMAZON PROVIDE FLEXIBLE CREDIT
• AMAZON OFFER EXCLUSIVE PRICING
• AMAZON ARE COMMITTED TO THEIR BUSINESS DIVISION
• WHICH IS GROWING FASTER THAN ANY OTHER AREA OF THEIR BUSINESS
• AMAZON ARE IN OUR SPACE & THAT THEY ARE TAKING MARKET SHARE

WE ALREADY KNOW!

STRANGE?

‘MODERN LOYALTY’

• GEOGRAPHY
• HISTORY
• HUMAN RELATIONSHIPS
• SOCIAL RESPONSIBILITY
• NEGOTIATION
• FLEXIBILITY

TRADITIONAL LOYALTY:

• INFINITE CHOICE
• INSTANT SELF-SERVICE
• INFORMATION UBIQUITY

MODERN LOYALTY:

CONSUMER ACCEPTANCE

• INFINITE CHOICE
• INSTANT SELF-SERVICE
• INFORMATION UBIQUITY

MODERN LOYALTY:

• MORE CHOICE
• BETTER DIGITAL SELF-SERVICE
• BETTER INFORMATION

YOUR OBJECTIVES & THE NEEDS OF MODERN BUYERS

PLATFORM REVOLUTION

THIS IS THE

TECHNOLOGY, PLATFORMS, & INTERCONNECTIVITY

WAREHOUSE PRODUCTS VEHICLES

• REDEFINE THE VALUE YOU BRING
• ADOPT A MARKETPLACE COMMISSION-BASED MODEL
• OFFER MORE, LEARN MORE, SELL MORE
• ENTER NEW MARKETS AT SCALE
• REACH MORE CUSTOMERS
• GROW & BECOME MORE PROFITABLE

CHEAPER, FASTER AND EASIER:

• YOU’VE GOT CUSTOMERS
• YOU CAN INVEST
• YOU CAN HOST TRANSACTIONS
• MANAGE PARTNERS
• RESPECT & REPUTATION
• KNOWLEDGE

YOU’VE GOT THE ASSETS & EXPERIENCE

• BUY-IN FROM THE BOARD ROOM
• REALISTIC ABOUT CHANNEL INVESTMENT
• RECOGNISE THE WEAKNESS IN YOUR MODEL
• MAKE SURE YOU HAVE THE RIGHT PEOPLE
• START TAKING ACTION TODAY

IT’S A QUESTION OF STRATEGY

TREND IS MODERN LOYALTY TECHNOLOGY IS THE PLATFORM TALENT IS YOU

THANK YOU RICHARD FLETCHER 07513 372248

richard@foodserviceonline.co.uk