Wal-Mart, the biggest retailer in America is out of business. It’s just a matter of time now. They didn’t do the right strategy to the world we’re about to live in over the last decade. However, more forward thinking companies such as Circlic, Involve Asia Technologies, KKDay and Amazon have a better plan.
But for their competitors, the game is over. Whoever has the end customer wins. Circlic develops social shopping mobile applications. They connect Chinese consumers and tourists to merchants. According to China’s National Tourism Administration, China’s outbound tourists reached 59.03 million in the first half of 2016. It saw an increase of 4.3% in the first over the same period in 2015.
Circlic’s objective is to capture this substantial share of outbound Chinese tourist spending by offering them better merchant values. Their mission is to build a cross-border e-commerce infrastructure that connects worldwide merchants to Chinese consumers.
Cirlic wants to revolutionize how merchants interact with customers. They do this by connecting merchants to customers in-store and online. They also build community and connect people to content according to their interests such as favourite food, shopping and travel experiences.
Like Amazon, they have the data and consumers. They’re building a social commerce platform for operators to build a social shopping marketplace and merchants to adopt O2O commerce.
Meanwhile Amazon is building 13 warehouses in the U.S. to do same day delivery and then it’s over because we’re lazy. We value time. That’s what we care about. Uber doesn’t sell transportation. They sell time. That’s what Amazon will sell with same day delivery, time.
We’re living through a massive culture shift that consumers and companies are grossly underestimating. The reason Borders bookstore went out of business in the U.S. is because Amazon came along in 1995 and got all the hype.
Then the 2000 Internet bubble came and Amazon lost 91% of its value in the stock market. Borders decided they were going to take advantage of this opportunity and they let Amazon do their distribution online. Unlike Cirlic, they didn’t build their own capabilities.
And Amazon paid them. Borders executives must have been laughing in the boardroom when they made this steal of a deal. In their mind, Amazon was going to do all the work for them and they were getting paid.
Meanwhile, Amazon was just collecting customer data and in 36 months, Borders was basically out of business. Everyone wants to know what the ROI is right now. But just because there isn’t an ROI at this exact second doesn’t mean it’s not valuable to do.
Circlic lets merchants build their own social shopping community and plan better marketing strategies to increase engagement and loyalty. Who actually cares about their customer? Which companies wants to have a customer forever? To these ends, Circlic wants to execute.
It starts with having a great product. It also means knowing how to properly story tell in the world we actually live in.