What is consolidating and fragmenting in consumer tastes
Consumers have more options, and both switching costs and brand loyalty are low.To survive, many retailers are finding ways to serve individual consumers in ways tailored to their needs and desires—transforming both their value propositions and their business models.To effectively scale new business models, established retailers should pursue “small moves, smartly made”—testing, scaling, and incorporating the most successful ideas as foundations for their evolving businesses. Make a request and we’ll find it for you,” promises Operator, a new shopping app, on its website.The service, developed by Uber cofounder Garrett Camp and former Zynga executive Robin Chan, offers a personalized, on-demand shopping experience that blends the benefits of virtual and physical retail.Today’s retail landscape is changing rapidly and dramatically.Driven by the Big Shift’s forces, consumers are becoming far more informed, and product choices are proliferating rapidly.
To compete effectively, traditional retailers should reimagine how they create and capture value, thinking past omnichannel positioning to find the best uses for their assets.The Operator app responds to customers’ natural-language-based questions and requests with pictures and descriptions of suggested products.The customer can buy desired products automatically using a credit card on file.The level of disruption has been significant: By 2000, seven of the eight largest US retailers in 1980 had filed for bankruptcy, been acquired, or lost their places as major industry players. But each of the transitions described above was driven by larger technological and social shifts, and each led to fundamental changes in how people shopped.
And every one of them increased consumer choice while reducing consumers’ total cost in terms of money, time, and opportunity.Today, we are on the cusp of yet another transformation.