November 12, 2014

This Is Why Digital Vendors Demand Retailers Become "Omnichannel".

Here's the link to the infographic on the right (click here).

Look at the four circles at the bottom of the graph.
  • $13 Billion in Mobile Sales.
  • $190 Billion in Online Sales.
  • $1,100 Billion ($1.1 Trillion) in retail sales allegedly influenced by online research.
  • $1,700 Billion ($1.7 Trillion) in retail sales not influenced by online research.
That $203 Billion that is Online + Mobile ... let's say that grows at +12% per year for ten years ... compounded ... that gets us to $630 Billion.

If the $2.8 Trillion grows at +2% per year for ten years ... compounded ... that gets us to $3.4 Trillion.

In other words, Online is constantly dwarfed by Retail ... for a decent amount of time, going forward.

This means that vendors looking to make $$$ on digital have their eyes a gigantic amount of Retail volume. If they can convince you that Online/Mobile cause Retail to happen, then they can get paid for the paltry Online portion of the total, and they can get paid for the gigantic Retail portion of the table above.

Just something for you to think about. There's no doubt Online+Mobile influence Retail. There is minimal proof, if any, that Online+Mobile cause Retail sales to increase ... there's plenty of proof that Online+Mobile divert sales away from Retail, at slow rates.