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5/16/00Retail Planning Associates1 The Good News / The Bad News Retail Planning Associates Rob Rossi – Senior Technology Strategist.

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Presentation on theme: "5/16/00Retail Planning Associates1 The Good News / The Bad News Retail Planning Associates Rob Rossi – Senior Technology Strategist."— Presentation transcript:

1 5/16/00Retail Planning Associates1 The Good News / The Bad News Retail Planning Associates Rob Rossi – Senior Technology Strategist

2 5/16/00Retail Planning Associates2 The Good News The mass market is coming to the web and there are all kinds of devices that will need solid interface design. The price tag for web development is demanding successful deployments

3 5/16/00Retail Planning Associates3 The Bad News There are no established standards for interface elements The speed to market pressure and tight labor market squeeze resources for documentation and standardization Speed of new technology developments and their adoption discourage standardization opportunities.

4 5/16/00Retail Planning Associates4 Internet Market Facts

5 5/16/00Retail Planning Associates5 The Web: Between 101 & 66 Million U.S. Surfers Source: Companies Listed

6 5/16/00Retail Planning Associates6 U.S. Internet Universe

7 5/16/00Retail Planning Associates7 Current/Intended Internet Usage

8 5/16/00Retail Planning Associates8 Demographic Profile of U.S. Web Surfers Source: MediaMark Research, Fall 1999

9 5/16/00Retail Planning Associates9 Feb 2000 Web Stats Source: PC DataOnline February 2000 Results Top 1500 Websites

10 5/16/00Retail Planning Associates10 Leading Languages Online

11 5/16/00Retail Planning Associates11 source Boston Consulting Group 1999 E-Commerce Online Retailers in U.S. and Canada collected $38 billion during 1999. –$7.4 billion, Computer hardware & software –$7.3 billion, travel –$5.8 billion, financial brokerages –$5.4 billion, collectibles 145% increase over 1998 $14.9 billion Orders have increased 200% Number of shoppers increased 300% –Source: Boston Consulting Group for

12 5/16/00Retail Planning Associates12 U.S. E-Commerce Shopping 39 million people shop online Average 13 online purchases in 1999 Average $1,200 spent online Currently spend 15% of shopping money online, by 2002 this will be 36% Online merchants say they are meeting or exceeding their online retailing goals source: Ernst & Young

13 5/16/00Retail Planning Associates13 2000 – The Nets Biggest Year 11 million new households to shop on-line this year – 28 million total – more than ¼ of the US household population Average household spending will rise 17% - average household will spend $1,366 –More individuals per household will shop online –More households will buy from expensive categories Projected spending is $39 billion

14 5/16/00Retail Planning Associates14 The Party Will Eventually End 2000 – 11 million new shoppers 2001 – 8 million new shoppers 2002 – less than 6 million new shoppers Easy acquisition game ends in 2002 –Until then online stores on the lookout for new buyers –After that, experienced shoppers outnumber novices 6 to 1

15 5/16/00Retail Planning Associates15 The Mass Market Is Moving To the Web. THE GOOD NEWS !

16 5/16/00Retail Planning Associates16 Interaction with Devices Non PC Devices Informational Touch points Internet Appliances IDC expects sales of information appliances (including Web Terminals, handheld computers and other devices) to grow from $2.4 billion in 1999 to $17.8 billion by 2004. Inter@ctive Week 3/27 Inter@ctive

17 5/16/00Retail Planning Associates17 Video Telephone Direct dial phone DVD Player LCD Monitor Touch Pad Pointer A marketing and sales tool which provides customers with 24 hour access to customer service, send and receive orders, applications, receipts, view information and product demos.

18 5/16/00Retail Planning Associates18 Kodak Care Station

19 5/16/00Retail Planning Associates19 Kodak Care Station Business to Consumer Telemedicine Solution using existing phone lines. Unit Cost: $3,000 to $4,000

20 5/16/00Retail Planning Associates20 Iphone 2-line (1 voice, 1 data) 56k Built in Modem Navigation Keys 7.4" Touch LCD Screen With: · Tilt Screen · Back light Display · 640x480 Resolution · 16 Color Grayscale Support Slide-away Keyboard with Full Size Keys Stylus Pointer One-touch Dial from Email, Web, and Address Book

21 5/16/00Retail Planning Associates21 Iphone Internet Browser HTML 3.2 HTTP 1.1 SSL with 128-bit Encryption Parental Content Filtering JPEG and GIF Frames, Cookies, Forms Tables, Go Button, Bookmarks History Email POP3 Email, SMTP Inbox and Multi-user Mailboxes (4) Sort by: Sender/Subject/Date Leave Mail on Server Option Automatic Email Check Compose Email Offline View JPEG and GIF Attachments Forward Attachments $399.00

22 5/16/00Retail Planning Associates22 Iopener The i-opener browser supports: HTTP 1.1 HTML 3.2 (frames, forms, tables) RealAudio 5.0 Javascript 1.1 SSL 128-bit encryption Cookies

23 5/16/00Retail Planning Associates23 Iopener

24 5/16/00Retail Planning Associates24 Ibrow 10 DSTN LCD Backlight Display Wireless keyboard w/trackball 2 USB connectors 56k v90 internal modem Integrated stereo speakers Microphone input Amplified headphone output Dual RJ-11 jack for Tel-in, Data-in 16Mb Flash memory 32Mb SDRAM 200Mhz. Media GXm Processor Other than Native Plugins, Merinta software is not sensitive to hardware architecture and can easily run on any processor for which there is a Java VM. The browser complies with most current W3C standards: HTML 4.0, XML, DOM, CSS, JavaScript, Java applets, HTTP 1.1, SSL 3.0, HTTPS, Internationalization – NLS/UNICODE, etc.

25 5/16/00Retail Planning Associates25 The LifeShirt system monitors 40 health indicators, which in turn are downloaded through a PDA module, uploaded to, and passed on to a doctor. Life Shirt

26 5/16/00Retail Planning Associates26 Ceiva 4 X 6 inch passive matrix screen 640 X 480 resolution 1 MB of memory stores up to 10 JPEGs 33.6 modem pre-configured to dial service Interface: Ceiva is set to check for new pictures daily randomly Between 1 – 5 am. Shuts off at midnight, on at 4:00 am. Your images are downloaded from the Ceiva website. $249. + $7.99/month access

27 5/16/00Retail Planning Associates27 Imagicast

28 5/16/00Retail Planning Associates28 Imagicast

29 5/16/00Retail Planning Associates29 Imagicast Fully integrated strategic one-to-one merchandising solution. ImagicastOps E-Commerce Solutions Business Intelligence Services Content Management Services ImagicastNet Back Office Services Wireless, Wide-area connectivity Services Merchandising Digital Appliance Services ImagicastWorks Planning Services Content Development Services Field Services

30 5/16/00Retail Planning Associates30 NCR 7401 Upgradeable Intel Pentium processor Windows NT Workstation 4.0 or Windows 98 operating system 32MB, 64MB or 128MB RAM 2.1GB or 4.3GB hard disk drive Integrated motion sensor Rugged, self-contained design Table-top, wall, pedestal and pole mount options 12.1" SVGA TFT active touch-screen supports 800x600 pixels, and 64K colors Multimedia features deliver full-screen, full-motion video with fully synchronized audio playback and upgrade path to hardware-based MPEG-II decoding

31 5/16/00Retail Planning Associates31 Navigation ? 9/10/99 - OnStar® announced that its services will be included in one million GM cars and trucks within the next 18 months, dramatically increasing the subscriber base from the current level of 75,000.

32 5/16/00Retail Planning Associates32 The impact deployed the air bags, which sent a signal to an OnStar advisor describing the exact location of the accident. The advisor reassured the driver that help was on the way and notified emergency service personnel who arrived at the scene within four minutes. An Onstar subscriber in Texas was involved in an accident that caused the vehicle to leave the roadway and enter a lake. Help !

33 5/16/00Retail Planning Associates33 Motorola Kiosk

34 5/16/00Retail Planning Associates34 Interactive TV

35 5/16/00Retail Planning Associates35 Web Development Cost The cost of building an Internet storefront from scratch ranges from $2 million to $41 million in the first year for the three archetypes we modeled: transaction, share-grabber, and anticipatory-seller sites.

36 5/16/00Retail Planning Associates36 Web Development Cost The Transaction Site Pure plays like launch with a basic level of functionality to get on the eCommerce map and prove their worth. Brick-and-mortar retailers like Sears, catalogers like Esprit, and manufacturers like K-Swiss build transaction sites to realize cost efficiencies, then test the waters for future investments in the Internet. SELL GOODS Gestation $1,787,000. Annually $1,945,000

37 5/16/00Retail Planning Associates37 Web Development Cost The share-grabbing site This type of site seeks to build share by offering deep selection to a mass audience; success is measured in market share gains and look-to-buy ratio improvements. Pure plays like Egghead provide competitive online offers but focus more on ringing the register than building a loyal following. Online sellers like Barnes and and manufacturers like Ford adapt their businesses to the Internet to defend their franchises against pure-play competition rather than seize the opportunity to redefine customer relationships. GRAB SALES FROM COMPETITORS Gestation $10,572,000. Annually $14,273,000

38 5/16/00Retail Planning Associates38 Web Development Cost The anticipatory-selling site Industry leaders like, CDNOW, Expedia, and Dell bet their companies on the ability to use advanced guided selling and merchandising techniques like configurators and rich personalization to anticipate customers' needs for a broad range of products. LOCK-IN CUSTOMER RELATIONSHIPS Gestation $40,546,000. Annually $48,825,000

39 5/16/00Retail Planning Associates39 Usability Testing / Protecting your investment. USWeb/CKS built a transactional site for over $1 million. The client pulled it down in less than a year because it was overly complicated and took too long to load. Vectrix miss quoted a web development project and let the client provide project management. They bid $100,000 The site cost $600,000 to build.

40 5/16/00Retail Planning Associates40 The State of Broadband By 2002, 16 million U.S. households -- a quarter of all on-line homes -- will use broadband connections to the Internet. Service and content providers must begin now to reshape their communication, commerce, and entertainment offerings to weave them into the lives of broadband consumers.

41 5/16/00Retail Planning Associates41 The State of Broadband Broadband Access Will Create: New on-line routines. Broadband consumers will tap on-line event calendars and link to video previews of performers, then to venue maps and the virtual ticket window. Similarly, on-line weather, traffic, and news via the always-on PC will be part of families' morning rituals. A new entertainment role for PCs. Broadband makes the PC-Internet combo more of an entertainment medium, but its content and user behaviors will still be very different from TV. Look for interactive applications that add an entertainment element on broadband-enabled PCs. The prime candidates: games, gambling, and adult sites.

42 5/16/00Retail Planning Associates42 The State of Broadband Broadband Access Will Create: Web tone for new devices. Always-on connections will spread Web content and connectivity throughout the house like a new power utility. PCs will move from the spare bedroom into the kitchen to accommodate constant usage. IP appliances including TVs, phones, and handhelds will synchronize using Net-resident directories. Practical video services. Road Runner is already testing video e-mail with a $150 camera package from Cubic Corp. that allows consumers to record video greetings, attach the file, and send it with an e-mail. It will be a short step for AT&T/TCI or others to create real-time video calls over the Internet

43 5/16/00Retail Planning Associates43 The State of Broadband Broadband Access Will Create: Useful virtual reality. Broadband will make 3-D walk-throughs of local attractions a feature of city guide sites. Road Runner in San Diego is working on capturing museum exhibits, parks, and its famous zoo using video and simulation tools from Interactive Pictures. New regulatory imperatives. Broadband will spread primarily in higher-income cities and towns where providers have an easier time selling premium-priced services. This will raise the FCC's universal access question to a new level: When mandating Internet access for all citizens, how fast is fast enough?

44 5/16/00Retail Planning Associates44 The State of Broadband Conclusion: Broadband will reach a mass market. By the end of 2002, 16 million U.S. households -- a quarter of all on-line homes -- will have high-speed PC connections to the Internet. Cable will lead the charge. More than 80% of broadband households will use cable-based service providers like @Home and Road Runner. ADSL connections will account for the other 20%, as AOL upgrades 10% of its members to premium broadband service by 2002. Broadband content will kick in. Content and service providers will create new entertainment, commerce, and media services that will integrate on-line resources into the lives of broadband consumers.

45 5/16/00Retail Planning Associates45 In a World of Change Whats Gonna Stay Around? XML, XSL Java JavaScript Middleware Open Architecture Solutions Plug and Play Solutions

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