MARKET - Reinventing The Customer Experience

Michael Forhez of Oracle and Michelle Evans of Euromonitor  Identified Nine Key Drivers along the Customer Journey

  Staying relevant is no easy task given the multitude of underlying forces now continuously shaping a new world of commerce. The speed of thought, coupled with its ever more connected consumer means relevancy is a very desirable element of the Customer Satisfaction Strategy. To address this need, Oracle and Euromonitor International partnered to examine key drivers along the customer journey.

HERE IS THE PRESENTATION

MARKET - What's Your Beef, The Next Big Fight in AgriFood

What Should Be Called Meat Now that Cultured and Plant Based Protein is On The Market

The U.S. Cattlemen's Association is looking to draw a line in the sand and launch what could be the first salvo in a long battle against plant-based foods.

On February 9th, the United States Cattlemen’s Association (USCA) submitted a petition for rulemaking to the U.S. Department of Agriculture’s (USDA) Food Safety and Inspection Service (FSIS) requesting the agency to establish accurate beef labeling requirements to better inform consumers on the difference between beef products derived from cattle and those created in a laboratory.

The 15-page petition calls for an official definition of the term "beef," and more broadly, "meat."

The CNBC Video and Report

MARKET - A Weekly Review of Amazon Stories and Notes

Investors Buy Into Amazon While Grocery and Pharmacy Dash For Cover 

Recode reports Amazon Go plans to open as many as six more cashierless Amazon Go stores this year. Watch for openings in Seattle where Amazon Go was launched and in Los Angeles where Amazon's first experiment with Whole Foods grocery delivery took place.

Everyone wonders how Walmart will respond to the Amazon Go challenge. In December Recode reported Walmart was experimenting with a new store model called Code Eight and preparing a new cashierless experience called Project Kepler that aims to reimagine in-store shopping with the help of technologies like computer vision.

Earlier this week Quartz reported that Amazon was wreaking havoc on grocery. They suggest this disruption is largely responsible for America’s largest grocery chain Albertsons bid to acquire Rite Aid. This latest move by Albertsons, which also bought meal-kit startup Plated for an undisclosed sum in September, and partnered with grocery-delivery service Instacart in late November, will give Albertsons 4,900 locations across most of the US, and total revenue of nearly US$83B. As everyone can see grocers and pharmacies are scrambling for cover. 

Will Amazon Rule the World? 
Hard to tell at this point, but it is clear the disruption afforded by Jeff Bezos' master plan is significant. Amazon wants to deliver everything you want to your doorstep, anywhere in the world. A Wall Street Journal (WSJ) video shows the e-commerce giant faces several challenges in its pursuit of a global empire. WSJ analyst Karan Deep Singh breaks down the basics with the help of an Amazon delivery box:

How are investors responding?
When Amazon.com announced fourth quarter sales were up 38% to US$60.5B earlier this month investors began to drive up the share price. The Walmart Q4 stumble reported earlier this week has increased the 'hurt' for Walmart and drove Amazon shares even higher. The Amazon Investor Page graphically shows the response.

Amazon is now worth more than 2.5 Walmarts.

MARKET - Walmart Online Sales Stumbled During Christmas Season

Walmart Online Sales Only Grew 23% in Q4


According to a CNBC report on Tuesday, Walmart e-sales growth stumbled during the holiday season, falling by more than half from the previous quarter. 

Overall sales for Walmart’s fourth quarter were better than expected, $136.3 billion but the stumble in online sales despite the purchase of Jet.com is ringing alarm bells.

Walmart says it will invest more in its online business and expects growth of 40% in online revenue this year.

Oliver Chen of Cowen & Co. suggested to his clients that people are still underestimating the value of Walmart's store fleet (something Amazon doesn't have). He expects the bricks and mortar element of Walmart will aid the company in fulfilling more grocery orders and same-day deliveries as it adds technology, digitizes the supply chain and continues to merge or acquire its way to a better share of the online business.

CNBC REPORTS WALMART STUMBLES

REUTERS REPORTS WALMART INVESTORS SPOOKED

MARKET - Google Insights On Canadian Search Trends

Asking Smart Devices a Question You Once Asked Your Mom or a Trusted Colleague is Now Common

Google has been measuring new trends in Canadian search results and in this article reports on a very interesting development.

Searchers are now asking their devices for information and even opinions on everything from what they should have for dinner to car insurance and their finances.

How has this come about? 

The article presents fascinating data that provides a dynamic measurement of these trends. However, we may have to reference other market statistics to really understand WHY this is happening.

For instance, InfoStream is following Voice User Interfaces (VUI) with particular interest. Voice is replacing other user interfaces very quickly. Recent statistics show the installed base and demand for Alexa, Google Home and other smart search devices has accelerated well beyond earlier expectations. Voice search  interfaces are also now commonplace in cars, phones, tablets and computers. They are easy to use and are available when your mom or a friend are not.

In a recent experiment in rural Alberta, InfoStream had users of Alexa, an HP Computer, an Android Smartphone and an Apple Smartphone, to pose the question 'How long should I cook this turkey'. The results were surprisingly accurate although there was some variation. The most interesting response was from Alexa 'who' thought to ask how much the turkey weighed before responding with a cooking time and temperature.

The Google data shows how the use of contextual references like 'I' or 'me' or 'near me' has also risen. As the Google article concludes:

"Savvy marketers now know that consumers want answers as well as ideas and inspiration. And they want these things fast. Those who can deliver answers to people’s personal needs will have an advantage".

The Article

MARKET - Louis McCann President/CEO, PIJAC Canada to Retire

February 13, 2018 (Ottawa, ON) – PIJAC Canada President & CEO, Louis McCann will be retiring after 40 years of service to the Canadian pet industry, 27 of which have been with the association. Louis has been the face of Canada’s industry dedicating his professional and personal life to fostering responsible pet businesses and advancing the standards of care for pets.

At the age of 16 McCann began working for the Montreal SPCA cleaning kennels. After achieving his Bachelor of Science with a major in wildlife management Louis worked his way through the ranks of the SPCA becoming the Director of Cruelty Investigations and Director of the Wildlife Department.  

In 1992 Louis became the Executive Director for the Pet Industry Joint Advisory Council of Canada (PIJAC Canada) after spending the previous year leading the Quebec Division. For almost over 25 years Louis has been the lead advocate representing the interests of pet businesses in Canada, including; manufacturers, distributors, retailers and pet care service providers. Combining his own expertise with government partners and other pet welfare organizations Louis has raised the bar for the Canadian pet industry. He has achieved this through the development of health protocols, municipal and provincial guidelines, best practice recommendations for businesses and the promotion of sound animal care and husbandry practices in all sectors of the pet industry. From rescuing seals in Montreal harbour to speaking in provincial legislatures across Canada, Louis McCann is one of the foremost authorities on urban animal issues.

“It comes with mixed feelings as we announce Louis’ retirement. Louis has been the face of PIJAC Canada almost since the beginning. His strong leadership and unwavering dedication has allowed for the association’s steady progress. Louis’ determination to build bridges is his legacy. He worked to bring together stakeholders both in and outside the industry to collaborate on the advancement of care standards and responsible practices.”, says Board Chairman, Mike Campbell. “We are truly grateful for all he has done.”

The search for a new association President & CEO has begun. Louis will remain with the association for part of the year, helping to pave the way for his successor.

For more information:
Susan Dankert, Communications Manager, PIJAC Canada
communications@pijaccanada.com

MARKET - The Adoption of Innovative Products Accelerates

How Long Does it Take to Gain 50 Million Users

Adam Grant

Adam Grant, the author of Give and Take, Originals and Option B is a Wharton professor and writer for the New York Times. He recently posted an illustration of the consumer acceptance for various products in the past century (included below).

What becomes obvious as you address your mind to this illustration, is what made this acceleration occur was the availability of infrastructure and technology. 

Once the infrastructure that supported each of these products became commoditized and large numbers of users had access, consumer acceptance rose. 

Historically, marketers would drive a product hard to establish a 10% market penetration. These strategies were often very expensive and involved discounting or sampling tactics that moved product out to the 'early adopters' who would influence the rest of the market. Once the product developed a demand momentum of its own, marketing activities and tactics would change to support this developing momentum.

In 2000, Malcolm Gladwell wrote a book called, 'The Tipping Point, How little things can make a big difference'. He observed a new phenomenon acting on the consumer. In this book, Gladwell showed how a tipping point develops and examined how this moment eventually drives success. The book was written in the early pre-app days of the internet when peer-to-peer (P2P) influence was by email or text for the most part.

Now that technology has allowed infrastructure to be commoditized and consumers live in an environment where nearly everyone has the ability to access everything with their digital devices, acceleration has once again increased. Clearly, everyone in the ecosystem needs to examine how this environment must needs change their approach to the consumer.





LINK

MARKET - Amazon Reports Q4 Sales up 38% to US$60.5B

Amazon Q4 Performance Drives Market to US$1,477.10 per Share in After Hours Trading

The Amazon webcast earlier this afternoon was an inspiring performance for this Ecommerce giant. The links to the press release and webcast are available at the bottom of this article.

Financial Highlights from the webcast:

• Common shares outstanding plus shares underlying stock-based awards totaled 504M on December 31, 2017, compared with 497M one year ago.
• Net sales increased 38% to US$60.5B in Q4, compared with US$43.7B in Q4 2016.
• Operating income increased 69% to US$2.1B in Q4, compared with operating income of US$1.3B in Q4 2016.
• Net income was US$1.9B in Q4, or $3.75 per diluted share, compared with net income of US$749M, or $1.54 per diluted share, in Q4 2016. [Includes a provisional tax benefit of the U.S. Tax Cuts and Jobs Act of 2017 of approximately US$789M]
• Net sales increased 31% to US$177.9B in 2017, compared with US$136.0B in 2016.
• Operating income decreased 2% to US$4.1B in 2017, compared with operating income of US$4.2B in 2016.
• Net income was US$3.0B, or $6.15 per diluted share in 2017, compared with net income of $2.4B, or $4.90 per diluted share, in 2016.

Other Webcast highlights:

• More than five billion items shipped with Prime worldwide in 2017.
• More new paid members joined Prime in 2017 than in any previous year — both worldwide and in the U.S.
• Fire TV Stick and Echo Dot were the best-selling products in 2017 across all of Amazon.
• Amazon launched new ways for developers to earn money building for Alexa, including paid skill content through in-skill purchasing, premium subscription content, and a more frictionless checkout experience with Amazon Pay.
• The Alexa Skills store now offers more than 30,000 skills, including new developer tools for Alexa Gadgets.
• Customers now use Alexa to control more than 4,000 smart home devices from 1,200 unique brands.
• Amazon also introduced new tools and developer kits, including the Alexa Mobile Accessory Kit and Alexa Premium Far-Field Voice Development Kit, to make it easier for developers to bring Alexa to more devices.
• Amazon hired nearly 130,000 employees globally in 2017, excluding acquisitions.
• Amazon welcomed several new device makers to the Dash Replenishment program that enables smart appliances to automatically reorder consumables when supplies run low, including 3M, Hewlett-Packard, Kenmore, and Bluestream. 
• Amazon launched two furniture brands: Rivet, offering affordable and versatile mid-century modern furniture ideal for smaller spaces; and Stone & Beam, offering durable and stylish furniture for the modern household.
• Fulfillment by Amazon (FBA) shipped billions of items for small and medium-sized businesses, worldwide in 2017.
• Prime selection in India now offers members more than 25 million local products from third-party sellers.
• Amazon celebrated its 10th holiday season of Frustration-Free Packaging — an invention designed to reduce waste and delight customers with easy-to-open, 100% recyclable packaging. Amazon’s sustainable packaging innovations have helped to eliminate nearly 215,000 tons of packaging material and 360 million boxes.
• Amazon Go, a new kind of store with no checkout required, is now open to the public in Seattle. The checkout-free shopping experience is made possible by the same types of technologies used in self-driving cars: computer vision, machine learning, and sensor fusion.
• Amazon Web Services (AWS) now operates 52 Availability Zones across 18 infrastructure regions globally.
• AWS continues to accelerate its pace of innovation with the release of 497 significant new services and features in the fourth quarter, bringing the total number of launches in 2017 to 1,430.
• AWS introduced four Artificial Intelligence (AI) services that allow developers to build applications that emulate human-like cognition: Amazon Transcribe for converting speech to text; Amazon Translate for translating text between languages; Amazon Comprehend for understanding relationships and finding insights within text; and Amazon Rekognition Video, a deep-learning powered video analysis service that tracks people, detects activities, and recognizes objects, celebrities, and inappropriate content.
• AWS launched Alexa for Business, a new service that brings Alexa into the workplace to help employees be more productive and organized on both personal and shared Echo devices by simply using their voice. Employees can use Alexa for Business to find an open conference room, make phone calls, check calendars, schedule and start meetings, manage to-do lists, set reminders, and even find information in popular business applications like Salesforce, Concur, or Splunk.

“Our 2017 projections for Alexa were very optimistic, and we far exceeded them. We don’t see positive surprises of this magnitude very often — expect us to double down,” said Jeff Bezos, Amazon founder and CEO. “We’ve reached an important point where other companies and developers are accelerating adoption of Alexa... Much more to come and a huge thank you to our customers and partners.”

Q4 Press Release

Q4 Webcast Replay and Slides

Eight minutes with Jeff Bezos Recorded in 2009


About Amazon:
Amazon is guided by four principles: customer obsession rather than competitor focus, passion for invention, commitment to operational excellence, and long-term thinking. Customer reviews, 1-Click shopping, personalized recommendations, Prime, Fulfillment by Amazon, AWS, Kindle Direct Publishing, Kindle, Fire tablets, Fire TV, Amazon Echo, and Alexa are some of the products and services pioneered by Amazon.

MARKET - Kimberly-Clark Restructures in a Tough Market

The World's Leading Producer of Sanitary Cellulose Sheds up to 13% of Workforce and Closes 10 Plants

Reading Room

In days gone by, dual purpose reading materials were a necessary element of life and sanitation. For more than 2 billion people around the world, sanitation is still an issue. 

However, the loss of catalogues, newspapers, sales flyers and other newsprint hasn't really affected much in the developed world because of improvements in sanitary cellulose by companies like Kimberly-Clark. 

Recognizable brands like Kleenex, Scott, Andrex, Huggies, Pull-Ups, Kotex, Poise, Depend, Cottonelle and Kimberly-Clark Professional have allowed Kimberly-Clark to maintain annual sales of just over US$18B.

According to the company, nearly a quarter of the world's population trust Kimberly-Clark's brands and the solutions they provide to enhance their health, hygiene and well-being. Brands such as Kleenex, Scott, Huggies, Pull-Ups, Kotex and Depend, Kimberly-Clark hold the No.1 or No. 2 market share position in 80 countries.

However, the industry has been in a consolidation phase since early this century. Kimberly-Clark has managed to meet shareholder expectations by acquisition, by moving away from unprofitable brands or markets and by the FORCE initiative, an element of the Global Business Plan launched in 2003. The plan has produced hundreds of millions of dollars in savings by reducing discretionary spending and increasing operational efficiency.

Kimberly-Clark Brands

In his report to shareholders this week, Chairman and CEO Thomas J. Falk noted:

"In 2017, we achieved all-time record FORCE cost savings of $450 million and reduced discretionary spending to help offset inflationary cost headwinds. In addition, we returned $2.3 billion to shareholders through dividends and share repurchases."

The company has established a four-year cost savings target of more than $1.5 billion from its FORCE program by 2021. Savings will be driven by workforce reductions, which are anticipated to be in a range of 5,000 to 5,500 (12 to 13 percent of current headcount), by increasing supply chain efficiencies and by closing or selling approximately 10 facilities while expanding production capacity at others to improve overall scale and lower cost.

Falk believes these savings will further enhance the company's ability to invest in growth opportunities, offset headwinds and improve gross margin while the company meets its environmental sustainability objectives.

The stiff competition among retailers and supply side consolidation have produced a downward trend in margins and retail prices that benefits the consumer with the lowest cost of sanitary supplies since dual purpose newsprint.

KC on Wikipedia

MARKET - GE Takes US$11B Charge and May Restructure

A 125 Year Old Company Struggles to Regain 'Greatness' in a New World



As Chief Executive, John Flannery took over the reigns of General Electric in August 2017, he faced the challenge of redefining or  rediscovering 'greatness' for this legacy organization. 

Flannery is GE’s eleventh CEO and the company’s tenth Chairman. General Electric is the largest industrial company in the world and operates in 180 countries. Once a leading brand, GE is now ranked 11th on the Forbes list of the most valuable brands. The market capitalization of industrial companies has also been descending as digital companies ascend to the top spots.

On Tuesday, Flannery announced that GE will take a charge of US$11B in the fourth quarter of which US$6.2B is for reevaluation of insurance assets, US$3.4B is for U.S. tax changes and US$1.8B is for impairments of energy financing at GE Capital. The company will also need to add as much as US$15B to insurance reserves over the next 7 years to remain compliant. 

Although, GE is no longer involved in the long-term care insurance business and has not written such policies since 2006, the company is still responsible for some 300,000 policies. The company estimates the additional costs could be as much as US$50,000 per policy. 

This US$15 billion set-aside highlights the difficulties long-term care insurers and reinsurers face as they make good on policies dating back decades. Many of these policies seriously underestimated the cost of care, increasing life spans and reduced government programs. 

There are also other challenges that need to be addressed. Analysts have pointed to falling sales of power turbines, a build-up of inventory and declining profit margins in some businesses. Flannery has already eliminating thousands of jobs and cut $3.5 billion in costs but the turnaround effort is still likely to take more than a year to play out.

In November, Flannery announced a plan to refocus on power, aviation and healthcare.  However, with GE shares falling 40% over the past year, the company may now be forced to restructure or break up operations. Current share prices (US$18.21) give the company a market value of US$156 billion.

GE is the largest industrial company in the US. It has previously raised the idea of selling assets, but went slightly further on Tuesday. Flannery is now saying GE is “looking aggressively” at spin-offs and other ways to monetize the value of GE’s power, aviation and healthcare units.

Investors are paying close attention. Disruption is widespread and General Electric is not the only legacy company trying to sort out a role in this brave new world.

MARKET - Judith McKenna promoted to CEO of Walmart International

Wal-Mart Stores Inc. (NYSE: WMT) announced today that Judith McKenna will be promoted to President and Chief Executive Officer (CEO) of Walmart International, the company’s second-largest operating segment. She will be succeeding David Cheesewright, who has been in role since 2014 and recently shared his desire to retire from a full-time role.

McKenna, currently serving as Executive Vice President and Chief Operating Officer (COO) for Walmart U.S., will assume her new role on Feb. 1, 2018, and report to Walmart President and CEO, Doug McMillon.

“During his 19 years with the company, David has served in a number of key leadership roles in our company. He has built a reputation as an insightful strategic thinker with a track record of delivering consistent, profitable growth. He has been instrumental in strengthening our business across the globe. He’s a passionate advocate for our people, culture and purpose around the world,” McMillon said.

Cheesewright will remain with the company full time through March and then serve the company, on a limited basis, with specific projects for a longer period of time.

“I’ve had the pleasure to work with Judith for many years and have seen first-hand her ability to lead strategic change, build relationships with our associates and strengthen our business. It has been inspiring to see her personal growth and the results she’s driven over the years. Her integrity, high expectations and passion for the business and our associates will ensure our continued success in International,” said McMillon.

“Being chosen to lead Walmart International truly is an honor, and I can’t think of a more exciting time to be in this part of the business,” said McKenna. “I look forward to building upon our progress to improve the experience for our customers and associates around the world.”

McKenna’s career with Walmart began in 1996 at Asda, the company’s U.K. operation, where she served as Chief Operating Officer and Chief Financial Officer. McKenna also served as Executive Vice President of Strategy and International Development for Walmart International. There, she led several areas, including international strategy, real estate, mergers and acquisitions, integration, global format development and purchase leverage.

Upon moving to the Walmart U.S. division in April 2014, McKenna served as the business unit’s Chief Development Officer, where she led the strategy, development and growth of Walmart’s small format business and the partnership with Walmart.com to integrate digital commerce into the physical store presence. Several months later she was promoted to her expanded role as Executive Vice President and Chief Operating Officer for Walmart U.S. with responsibilities for the company’s U.S. store operations, including more than 4,500 retail locations.

Walmart’s International division serves more than 100 million customers every week in more than 6,200 retail units, operating outside the United States with 55 banners in 27 countries.

Bio for Judith McKenna

MARKET - Disruption Drives Walmart to Close 63 Sam's Clubs, Repurpose Others and Raise Wages

Further to the Story of Disruption, Walmart Responds with Closures, Repurposed Geography and Higher Wages. 

Yesterday morning clients and employees arrived at Sam's Club stores to find them closed and locked down. Late in the day, Sam's Club CEO, John Furner, announced:

"Transforming our business means managing our real estate portfolio — we need a strong fleet of clubs that are fit for the future. After a thorough review, it became clear we had built clubs in some locations that impacted other clubs, and where population had not grown as anticipated. We've decided to right-size our fleet and better align our locations with our strategy. ... We will work to place as many associates as possible in new roles at nearby locations, and we'll provide them with support, resources, and severance pay to those eligible."

CNN Money Video

The wholesale club locations closing span from Alaska to Puerto Rico but some of the shuttered stores will be converted into e-commerce fulfillment centres according to the company.

Earlier in the day, Walmart had announced it would boost wages, hand out bonuses and increase other employee benefits. The official line was that all this became possible because of the passage of new tax legislation.

As the day progressed and customers became aware of the closurers they clogged up Twitter and Facebook to ask what was going on. Customers are also asking for a refund of their US$45 memberships and where they could pick up their prescriptions. To some observers, the move doesn't appear like an ordered, planned approach to a realignment. Others have suggested it seems more like a panic response to 4th quarter retails stats.

CNN Money Story about the PR Mess at Walmart yesterday

Cowen and Co. analyst Oliver Chen apparently wrote in a note to investors Friday morning:

"Walmart "is taking prudent steps to prepare for the next generation of retail warfare, one in which speed will be king and delivery will be judged by hours and not days, we believe Sam's Club leadership will continue to execute against other initiatives ... as management noted while results have improved over the last several quarters, the retailer can do better as Sam's Club has underperformed club peers." 

Daphne Howland, wrote a RetailDIVE article in September 2016 that identified Amazon as a competitive issue for Sam's Club, Costco and BJ's Plus, The Retail Dive Brief showed: 

• The percentage of U.S. households that pay for Amazon Prime but hold no other club membership has grown from 7.1% in 2013 to 16.2% in 2016, while the percentage belonging to just Costco fell to 9.8% from 14.9% and Sam’s Club fell to 9.7% from 16.9%, according to research from Cowen and Co. released Monday and cited by ETF Daily News.
• Cohen’s research also found that Amazon Prime is on the way to adding some 12 million new members this year, up from 10 million new members last year and 7 million in 2014, CNBC reported.
• Some 44% of U.S. households belong to Prime, according to Cowen, but that could jump up to 50% by the end of the year. Eventually, the firm predicts Prime could exceed 60 million households in the U.S., according to Cowen analyst John Blackledge.

Whatever the real story, other retail outlets will bear watching as a new year in retail unfolds.

MARKET - Google Runs Into Rain at CES2018

Google's Big Splash is Wetter than Expected

After more than 120 days without rain, the skies above Las Vegas opened up and flooded the parking lot where the Google display booth sits. Local reports show flooding, disturbed flights and rapid water rescues were the order of this day. 

TechCrunch

As TechCrunch first reported:

"the booth is closed, with tarps covering the roof and all of the electronics inside and out. 

Usually, this wouldn’t be a big deal, but this is the first time Google has exhibited at CES and the company clearly put a lot of thought and effort into its presence here."

How the display company and Google marketing executives handle this disaster will be important. Perhaps they will have a little fun with it and have life rafts and life jackets available for the exhibit tomorrow. How a company handles a dilemma often shows the character (DNA) they bring to their collaborators.



Business Insider Reports:

Avery Hartmans/Business Insider

"Google had planned a preview of its booth for press at 8 a.m. local time Tuesday, but was forced to close up shop completely after the booth flooded. Google's entire booth is now covered in tarps, with employees using buckets to bail out water off the back balcony. 

A representative outside the booth said Google plans to open the booth again Wednesday morning, provided everything dries out before then."

The weather forecast on January 5th showed the potential for heavy rain on Tuesday between 1000 and 2200hrs. But a hot dry 2017 produced disbelief. The National Weather Service says 2017 was the warmest year on record, with an average temperature of 72.3 degrees.

According to the weather channel, skies are expected to clear, bringing Las Vegas and Google back into the sunshine tomorrow.

MARKET - Amazon Google Battle for the Home is Evident at CES Today

Consumers Win New Products and More Convenience as the Battle for the Home Plays Out

Google's CES 2018 Gumball Machine

MicroSoft and Apple are missing in action while Amazon and Google appear everywhere as well as in their own branded spaces.

According to this mornings report from Wired, Google has made a huge splash at CES 2018:

"Along with the new categories, Google touted its rapidly growing adoption: Assistant can now control more than 1,500 devices, and you can interact with it through new Android TVs, new smart speakers, and more. These aren't new features, really, just new and different ways to use Assistant. That's what Google really needs right now"

"Right now, by all accounts, Amazon's Alexa is winning the virtual assistant battle. It was in hundreds of third-party devices at last year's CES, and though Amazon doesn't release specific sales figures beyond the "tens of millions" statement from CEO Jeff Bezos, Echo devices appear to outsell Google Homes by a wide margin. Not only that, Amazon's working with a growing list of partners to embed Alexa in other devices as well." 

The WIRED Story

GeekWire also report's today that it's Game On in the battle for the Home:

Google Papers Las Vegas Monorail

"That market is growing quickly, with analysts at the Canalys research firm projecting more than 56 million smart speaker shipments in 2018, the majority in the United States.

But much more than their own first-party smart speakers, industry partnerships with device makers will be key for Amazon Alexa and Google Assistant to reach critical mass, which is why CES is such an important battleground for them both. Google said last week that Google Assistant works with more than 1,500 smart home devices from more than 225 brands. 

By the end of this week’s show we should have a better sense for whether Amazon will extend its lead or if Google Assistant will make serious inroads against Alexa in the coming year."

The GeekWire Story

MARKET - Sears Closes 64 Kmart and 39 Sears Branded Outlets

In a tersely worded release yesterday, Sears Holdings adjusted the physical footprint they control in America by closing 103 outlets:

Sears Holdings continues its strategic assessment of the productivity of our Kmart and Sears store base and will continue to right size our store footprint in number and size. In the process, as previously announced we will continue to close some unprofitable stores as we transform our business model so that our physical store footprint and our digital capabilities match the needs and preferences of our members.
The company informed associates at 64 Kmart stores and 39 Sears stores that we will be closing these stores between early March and early April 2018.

The full text of the Sears press release and list of outlets and service centeres being closed is available HERE.

According to industry reports Sears is struggling to survive competitive pressures from larger low-cost (discount) retailers and e-commerce. It has high levels of debt and has not been very agile in its response to poor profitability and dwindling consumer demand. Macy's and other similar retailers face the same pressures and are adjusting the 'physical footprint' they control.

"Is it not ironic, the largest catalogue retailer in the history of America has 'had their ass handed to them' by an organization that figured out how to execute order buying and home delivery better, faster and cheaper than Sears ever did."

"About the only way to add insult to this injury, would be for an ecomm retailer to set up HQ2 in a very tall building in Chicago."

In view of the place Sears held in the development of retail services across America, some of the remarks being shared around the globe seem disrespectful. However the disruption of the retail sector is real and is accelerating. The list of retailers who haven't figured out the paradigm shift and are no longer in a viable business is growing.

MARKET - Business in a VUCA World

Understanding Change and How AGILE Became Significant

The year was 2011. My youngest son was in military training. He began to use a term that was unfamiliar to me - VUCA, to describe modern battlefield scenarios. Volatile, Uncertain, Complex, Ambiguous certainly described the future I forsaw in business. That year, I read 'Warrior' literature to understand this subject matter. I became impressed that VUCA described situations well beyond those encountered on a military battlefield.

In June 2012, a colleague of mine attended a leadership conference in California and met Bob Johansen the author of 'Leaders Make the Future'. Once again I encountered the term VUCA, but this time in the context of the emerging future of business. It was June 2012, and I was convinced to add Bob's book to the Leadership Library and make VUCA part of the Urban Animal Conversation. 

In 2014, the Leaders Library featured 'Crazy Is a Compliment: The Power of Zigging When Everyone Else Zags', by Linda Rottenberg. It suggested being nimble, adaptive and daring. In 2015, InfoStream published an editorial by James Manyika, Director of the McKinsey Global Institute (MGI) that showed how Four Forces are Upending Everything. This article is one of many that InfoStream has published to show 'change' as a constant and AGILE emerging as the management response. Earlier this fall, InfoStream published an IBM executive report on Accidental Agitators. Although focused on the transportation sector, it showed that disrupters often originated outside the sector.

Now in December of 2017, if I am surprised by anything, it is that VUCA and an AGILE response are not more well embraced or even understood by senior management. As we move into 2018, InfoStream will illuminate this story for the benefit of Urban Animals and those who serve them. In the meantime, here is a video that will introduce you to VUCA.

MARKET - The Winning YouTube Ads of 2017

YouTube and Webby Awards Select the Iconic Ads of 2017

The winner in each category as well as the runners up are presented. A great way to enjoy InfoStream's Video Saturday:

• Guilty Pleasure
• Knows no Limits
• Takes a Stand
• Six Appeal
• Stars in Your Eyes
• Straight to the Heart