What is Snapchat, how does it work and what is it used for?

June 12, 2018 Leave a comment

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Snapchat is confusing. Right?

We’ll agree it seems that way. It basically updates every couple weeks, at the very least, adding new features or changing core functions. And, at the end of the day, the whole concept behind Snapchat is, well, odd. After all, it was initially about sending photos or videos, which only played once, to friends, for a few seconds, and then they’d disappeared for good. What’s the point of that? What if you want to send a photo or video to someone for them to keep forever, just like you always could with every social network or messenger before Snapchat?

Stop right there. Forget all that. Snapchat isn’t your typical social network. Plus, thanks to those constant updates over the past few years, Snapchat is way different these days. For instance, it now lets you replay snaps, aka those photos or videos that you received from friends, an unlimited number of times, and you can always screenshot those moments if you want to save them. As for your own snaps, which you send to friends in a chat or broadcast to followers via the Snapchat Stories feature, you can always save them to the Memories section within your Snapchat account, or to your device’s camera roll, solidifying their place in history for all of time.

Toss out everything you thought you knew, and let’s start from the beginning, and then fast forward to where we are now, so that you can finally start using Snapchat like a pro.

Snapchat is an Android and iOS app. It’s headed by co-founder Evan Spiegel. One of the core concepts of the app is that any pictures or videos or messages you send are only available for a short time before they become inaccessible. The temporary, or ephemeral, nature of the app is thought to encourage a more natural flow of interaction.

One last thing: Snapchat’s developer is a public company, called Snap. It claims to be a camera company. As such, it creates other products, including hardware, like Snapchat Spectacles, which you can read all about from here. Also, Snapchat is colloquially referred to as Snap.

Although Snapchat was originally focused on private, person-to-person photo sharing, you can now use it for a range of different tasks, including sending short videos, live video chatting, messaging, creating caricature-like Bitmoji avatars, and sharing photos and videos via a chronological “story” that’s broadcasted to all your followers. There’s even a designated “Discovery” area within the app that is designed to showcase short-form content from major publishers like Buzzfeed and Dailymail. Snapchat has also recently added a “Memories” feature, allowing you to save snaps (aka photos and videos) and stories to a private storage area. Other features include the ability to send money through an integration with Square Cash, create city-specific stickers that can be placed on snaps and messages, add filters and AR-based lenses to snaps, and show your live location on a world map.

The key thing to realise is that Snapchat is about instant communication, through photos and videos, which are sent or received on your mobile phone. Prior to Snapchat, social media was very desktop-based, and it was all about accumulating data, like statuses or tweets or photos and videos, and you’d post all those things online so that all your friends could comment on them and you’d keep them forever. In other words, Snapchat has changed the way we communicate online. With it, you can quickly send a photo of yourself at work to a friend, maybe with a rainbow-puking AR lens applied or a doodle scribbled on top, and then they can open it, screenshot it if they want, and reply back with their own photo or video response, which they can also broadcast to their story for friends and followers to see.

There are so many uses for this app. It’s hard not to see the value.

As of May 2017, Snapchat had about 166 million daily active users. And many reports and studies have claimed that the bulk of those users are millennials. As a result of those younger users, the app has yielded a number of different unique terms and names for its features, from “snaps” to “story”. If you’re confused by all this lingo, you should really read through the Glossary section of this Snapchat guide before you move on to how the app actually works.

  1. Snapchatter: It’s not as common anymore, but it means a user of Snapchat.
  2. Snap: When you take a photo or video, or receive a photo or video, it is known as a “snap”. So, when someone asks you to snap them, they are asking you to send them a photo or video through Snapchat, or even a message through the app’s chat function. The Snapchat app itself is also colloquially referred to as “Snap”, as is the app’s developer/public company.
  3. Snapback: This term was more popular when Snapchat launched, but it’s faded since. Nevertheless, if you’ve heard it, just know that it simply means a reply to a snap. So, if you Snapback, you’re just replying to a private one-on-one snap that you’ve received.
  4. Story: You can link snaps together and broadcast them as you capture them. They’ll appear to your followers as a “story” reel. They can tap through your story and watch every snap to experience your entire day. A reel can only be played back for 24 hours, after which, it disappears for good, though you can always save your entire story, or an individual snap from your story, to the Memory section – aka private storage – of your Snapchat to keep forever.
  5. Snapcode: A Snapcode is a scannable code that makes adding new friends even easier. For instance, a friend can simply flash their Snapchat camera at your Snapcode, which will immediately add you, without you having to manually look up their handle and tap the “add” button. Your Snapcode, which is similar to a QR code, can be located on the Profile screen. You can access it by tapping the ghost icon or your Bitmoji in the corner of the Camera screen.
  6. Score: Ever notice that number next to a friend’s handle in Snapchat? It’s a score – an equation combining the number of snaps they’’ve sent and received, stories they’ve posted, and other factors. You can find a friend’s score when you hold down on a friend’s name in your contact list, story feed, or chat area. And you can find yours under your Snapcode located in the center of your Profile screen. The higher your score, the more you likely use Snapchat.
  7. Snapstreak: Some of your friends or the people you follow might have different emoji next to their Snapchat names in the Chat section of your Snapchat. That means they’re on a streak, or Snapstreak, with you. In other words, you and that friend or friends have snapped each other (not including chat messaging) within 24 hours for more than one consecutive day. For a comprehensive list of what each friend emoji means, go to Settings > Manage > Friend Emojis.
  8. Trophy case: Snapchat might notify you of a new trophy you’ve earned, and tapping that notification will take you to your trophy case, which holds all the trophies for milestones you’ve achieved as a Snapchat user. From sending a snap with a filter to sending 50 snaps with five or more pen colours, trophies encourage user interaction and content creation.
  9. Lenses: You can make snaps even more fun by adding augmented reality-based special effects and sounds, with a feature called Lenses. To activate lenses, go to the Camera screen in Snapchat, then long-press on your face in the camera view, and lenses should appear in a row next to the capture button. Swipe around to select the lens you want, and then tap the capture button to take a snap with it. Popular lenses include the ‘rainbow puke’ and ‘dog with tongue’.
  10. 3D World Lenses: Unlike Lenses, which are primarily applied to your face – or a selfie shot – in real-time, World Lenses affect the environment around you. They appear in the same row as Lenses, but only when your camera is facing outward. You might see one that features your Bitmoji avatar, even. For instance, a current one shows our Bitmoji avatar mixing potions and chemicals while sitting at a desk. This animation is overlaid on the world around us and can be captured and then shared with our friends in a chat or followers via our story. Both Lenses and World Lenses are frequently changed by Snapchat, though popular ones are recurring.
  11. Filter: You can jazz up your snap by adding a fun overlay with a filter. After you take a snap, swipe right or left on the preview screen to add coloured filters, the current time, local weather, speed overlays, or geofilters to your photo or video. After taking your snap and applying your first filter, you can press and hold and then swipe to add yet another filter, too.
  12. Geofilter: Like filters, you can use a geofilter to decorate snaps. Unlike filters, however, geofilters are specific to your location or an event you’re attending. They encourage other users to share their experiences with friends and followers. On-Demand geofilters may also be designed and purchased by individuals or smaller companies and only become available when a user enters a specified location, such as a wedding or graduation venue.
  13. Chat: This is a messaging feature within Snapchat that lets you directly chat with other users. You can access the Chat section by swiping from left to right on the Camera screen. From here, you can also send Bitmoji stickers, start a live video call, send money, share snaps, and more
  14. Snapcash: Ever use the Square Cash app? Well, Snapchat allows you to transfer money to friends, thanks to a built-in integration with Square Cash. You can access it from the Chat section of Snapchat. But first, you must enter your debit card information under Settings. Then, in a chat, text “$” + the amount you want to send (e.g. “$5” for 5 dollars), and if your friend has also set up the feature under Settings, they will receive the funds in their bank account. At launch, they’d receive the funds instantly, though, recently, it can take up to one business day.
  15. Memories: Since launch, Snapchat has added several features that allow you to screenshot or save snaps. The latest example is Memories. It not only gives you another way to store snaps in Snapchat’s cloud but also introduces a section for accessing media locally stored on your device. When you take a snap, you’ll see an option to save it to your Memories (it’s like a private storage locker), where you can organise, edit, search, lock, and share the snap after the fact.
  16. Discover: This is a section, right of the Camera screen, meant for brands and publishers, which can broadcast stories for all to see. On Discover, you can find branded content made by Vice, Cosmopolitan, Daily Mail, ESPN, Tastemade, CNN, Buzzfeed, and more.
  17. Snap Map: With this feature, you can share your location with your friends or followers. It also allows you to scroll around an actual map to see where your friends are located. You can choose whether to share your location, of course. To access Snap Map, go to your Camera screen, then pinch your fingers on the screen like you’re zooming out from a photo, and the Snap Map should then appear. You and friends will be represented by Bitmoji.
  18. Bitmoji: If you have downloaded the Bitmoji app, created an avatar, and linked your account to Snapchat, you’ll see AR-based lenses featuring your avatar as well as stickers in chat with your avatar. You might also see “friendmoji” stickers in chat, which feature both you and a friend. Like other features, Bitmoji are designed to encourage user interaction on Snapchat. Keep in mind that Bitmoji was its own, separate platform until Snapchat acquired it a couple years ago.

Here’s where this app guide gets really tricky. Snapchat updates so often that it’s a waste of time to write a lengthy step-by-step instruction manual on how to operate the app, as Snapchat might look and work completely differently in just a few days time, so we’ll instead focus on popular, key features and how they work on a general basis, but more importantly, the main screens you’ll see when navigating Snapchat. If you need more details about how to get around the app or do specific things, we encourage you to visit Snapchat’s support hub.

  • Tap the capture button to take a snap, or press-and-hold it to record a video snap up to 10 seconds long. If you keep holding it, it’ll record a multi-snap.
  • After you take a snap, you can use all kinds of creative tools. For instance, tap the pencil tool to draw all over, tap the text tool to add a caption, tap the sticker tool to add a sticker or Bitmoji, etc.

From the moment you open Snapchat, you will see a view of whatever your device’s camera can see. This is the Camera screen. Now, how it looks and what options it shows may change over time, but generally, you will see a capture button at the bottom, with buttons to access your Memories screen, Chat screen, and Stories screen. At the top, you might also see options to access your Profile screen, Search screen, and maybe even turn on the flash or switch your camera view to front-facing. Anyway, primarily, from this screen you can capture snaps. To do so, tap or hold down the capture button, for a photo or video, respectively, and then you’ll see options to save it to Memories/your camera roll, add it to your story, or send it to a friend or a group of friends. But before you share it with anyone, be sure to decorate the snap with text, a doodle, a sticker, a link, etc. You can even adjust the time it can be viewed from a few seconds to unlimited. Also, remember, when taking a snap, if you tap the Camera view, you will see Lenses and World Lenses appear. Swipe through them and tap one to apply it. From there, you can decorate the snap and share it with others.

  • Only the people you choose can see your location, or you can even turn on ghost mode when you want to go off the grid.
  • Your location on the Snap Map only updates when you have Snapchat open.

When you open Snapchat and are confronted by the Camera screen, pinch inward, as if to zoom in, to see Snap Map. You will then see your Bitmoji avatar, if your Bitmoji account is linked, on a live map. Tap the Settings button if you want to enter “ghost mode” and become invisible. Either way, any user you follow who has not enabled ghost mode will appear on the map, so that you can see their exact location in real time. Snapchat may also serve up stories of users from around the globe so that you can quickly tap and see what’s happening elsewhere, like a Father John Misty concert in LA.

  • On the Memories screen, you can create new Stories, edit, and send snaps you’ve saved to Memories, and use smart search to find old snaps.
  • To open Memories, just swipe up from the Camera screen or tap the circle/cards underneath the Capture button.

Near the capture button, you should see an icon that looks like cards or a circle. Tap it to access your Memories, an area in Snapchat where you can not only store snaps to Snapchat but also access media locally stored on your device. You can search memories, share memories, mark up memories, and more. On the Memories screen, you can also access your profile, capture a snap, and go to the Chat and Stories screens.

  • When you’re chatting one-on-one with someone, a blue dot will appear at the bottom of your Chat screen, which means they’re present in the chat. If they’ve set up Bitmoji, their Bitmoji will pop up instead.
  • When you’re chatting in a group chat, a Snapchatter’s name will light up inside a bubble above your keyboard. This lets you know they’re present. Just tap on a name bubble to chat with that Snapchatter one-on-one. Or, to see who has read a chat, just tap on it.
  • Chats are deleted by default once you’ve both left the Chat.

When you open Snapchat and are confronted by the Camera screen, tap the Chat button in the corner or swipe from left to right to access the Chat screen. From there, you can start a new chat, search chats, see all your active chats, and even go to your Profile screen, capture a snap, quickly switch to stories, and more. Again, these options may change over time. So, the point of this section is to share one-on-one or in a group with friends. You can start a conversation or tap on an existing thread to message, send a snap, send cash, start a live video chat, send a Bitmoji sticker, and more. You can also long-press on friends’ names to see their Snapcode, Snapstreak, and other options for interacting with them on Snapchat. To edit a friend’s name, or even block or remove them, tap on their conversation thread, then tap the hamburger (menu) icon, and you’ll see the additional options for managing that friendship.

  • To post a snap to your Story, take a snap, then tap the arrow on the bottom of the screen to add your snap to your Story (and if it is your first time creating a Story tap ‘Add’ to confirm you want to post to your Story).
  • You can also tap My Story from the Stories screen to post to your story.

When you open Snapchat and are confronted by the Camera screen, tap the Stories button in the corner or swipe from right to left to access the Stories screen. From there, you can view all your friends’ broadcasted snaps in a reel that plays for up to 24 hours. Recent updates are at the top, followed by viewed stories at the bottom. Just tap a friend’s name to begin viewing their story, and then tap on individual snaps within the reel itself to skip forward, if you want. You can also swipe up from a snap in a story to send a chat to that person. Anyway, from the Stories screen, you might see options to add to your story, search stories, find friends, quickly add suggested contacts, access your profile and audience settings, capture a snap, and return to chat. Snapchat also highlights content from Discover on the Stories screen.

  • Keep up-to-date on breaking news with Discover! Watch Publishers’ stories and shows. To use Discover: Swipe right on the Stories screen to open Discover. Tap on a Story that sparks your interest
  • Tap the right side of the screen to go to the next Snap in this story, or tap the left side of the screen to go back and rewatch the last snap. You can also swipe down to exit a story.

Swipe from right to left on the Stories screen to access Discover, a section that showcases branded stories from publishers like Daily Mail and MTV. You can’t control what type of content is served up to you, but you can subscribe to certain publishers by long pressing on a thumbnail for a publisher’s story and then pressing the subscribe button. To view a story from a publisher, tap the thumbnail for their story. Like other stories, you can skip through, and when watching, you can long press on any snap to mark it up and then send it to a friend or group of friends. You can do this to both photos and videos.

  • Search is the fastest way to find a friend, a group you’re in, and more. Just tap the magnifying glass at the top of the screen to start searching.
  • Type in something you’re trying to find, or browse through suggested friends and topics.

When you open Snapchat and are confronted by the Camera screen, tap the Search button at the top. From there, you can search for other users by their Snapchat name. Verified users will have an emoji appear next to their name. The Search screen that pops up will also recommend related users, show you top stories, and allow you to view other users and their stories by criteria like music, sports, fashion, and animals.

  • There are a few different ways to add other Snapchatters. Here’s the easiest way: fom the Camera screen, swipe down or tap the Bitmoji in the upper left hand corner of the screen. This will take you to your Profile screen, where you will see options to find and add friends.
  • Also, from your Profile screen, you can create a Snapcode. With a Snapcode, friends and followers can visit a link by simply scanning it in Snapchat.

From most screens in Snapchat, you will see a ghost button or your Bitmoji avatar in the corner. Tap it to access your Profile screen, where you will find your Snapcode, Snapstreak, and options to view your Trophy Case, who has added you, your friends, and a way to add more friends. You can also capture a new snap from here, access Chat and Stories, and even find additional Settings or search Snapchat, though these options may change over time.

  • Change your privacy settings, Snap Map location settings, birthday settings, Memories settings, Snapcash settings, and more from Settings.
  • Just tap the Gear icon in the corner of your Profile screen.

When you see the gear icon on your Profile screen, tap it to access your Snapchat account settings, where you can link your Bitmoji account, manage on-demand geofilters, create or scan a Snapcode, add two factor, adjust your Memories, Spectacles, and Shazam preferences, change your password and phone number, and so much more.

When you look at your Chat screen, you might see different an arrow or icon next to each conversation thread. These mean different things:

SNAPCHATWhat S The Point Of Snapchat And How Does It Work image 4

Check out our other Snapchat-related guides:

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Ther’s Gotta be a Pony in Here Somewhere

June 12, 2018 Leave a comment

 

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California from a New York Perspective

June 12, 2018 Leave a comment

 

The New York Times
The New York Times

Tuesday, June 12, 2018

 California Today is edited by Julie Bloom, who grew up in Los Angeles and graduated from U.C. Berkeley.
Koreatown’s Wary Response to the Trump-Kim Meeting
By JOSE A. DEL REAL
A mural of the North Korean leader Kim Jong-un in the Koreatown neighborhood of Los Angeles.
A mural of the North Korean leader Kim Jong-un in the Koreatown neighborhood of Los Angeles. Eugene Garcia/EPA, via Shutterstock
Good morning.
The moment was historic, its significance marked by breathless news coverage across the globe. President Trump and the North Korean dictator Kim Jong-un met in Singapore, the first such encounter between leaders of the United States and North Korea, and the opening step in a delicate dance meant to de-escalate tensions between the two countries.
But you may not have known it from an evening out in Los Angeles’s Koreatown neighborhood on Monday, where residents and visitors carried on as usual while the two men shook hands a world away.
Mr. Kim certainly inspires passionate disavowals among Korean-Americans and immigrants living here, but his meeting with Mr. Trump drew muted interest across Korean bars, restaurants and entertainment spaces.
At a billiards hall in Koreatown, Yoon Hong Jung, 69, said that he was waiting to see what comes out of the meeting before he decides whether it was a good or bad idea. Mr. Yoon, who moved to the United States from South Korea 18 years ago, added that he has little faith that Mr. Kim has good intentions when it comes to nuclear disarmament.
“He’s a terrorist,” said Mr. Yoon, who still has family in South Korea. “ I don’t believe Kim Jong-un.”
Asked if he had been watching the news coverage, he pointed at the pool hall’s television with a slight shrug; the program on display was a Korean talk show. “Kim Jong-un is evil,” he added, and he did not need to watch the news to make up his mind about that. He soon returned to his game.
Lee Inho, 20, who moved to the United States when he was 5, said he was not even aware there was a meeting happening. “That’s something Americans care about,” he said with a smile, before walking back to a pool table to take his turn.
Down the street, at a cafe blasting Korean pop music, Oh Sooh-Ah, 21, said that she had followed the coverage of the meeting in Korean newspapers. But Ms. Oh, who left Korea nearly 11 years ago, said she and her family have scarcely discussed the meeting. She added that Korean families are often reluctant to discuss politics.
She also said her life here in the United States felt a long way away from the problems facing the Korean Peninsula.
“Of course we’re worried, our friends and families are there,” she said. “I’m not saying people don’t care. But people here aren’t feeling the reality of it.”
[Follow live updates of the summit meeting here.]
California Online
The federal government will investigate the University of Southern California’s handling of complaints against a gynecologist at the university.
The federal government will investigate the University of Southern California’s handling of complaints against a gynecologist at the university.
Jenna Schoenefeld for The New York Times
(Please note: We regularly highlight articles on news sites that have limited access for nonsubscribers.)
• The federal government is investigating the University of Southern California’s handling of sexual misconductcomplaints against the gynecologist Dr. George Tyndall. [The Los Angeles Times]
• Creditors have seized control of a dairy owned by Representative David Valadao and his family over $8 million in unpaid loans. [The Fresno Bee]
• The California Labor Commissioner said that Cheesecake Factory restaurants in Southern California had cheated nearly 600 janitors out of $4.57 million in wages and overtime. [The Orange County Register]
• Tensions have erupted on the campus of Chapman University in Orange County over a $5 million gift by the Charles Koch Foundation. [The Orange County Register]
• The state has seen a stark decline in refugee admissions under the Trump administration: California brought in just over 800 refugees between October and May, down from 4,500 in the same period a year before and 3,700 two years before. [The San Francisco Chronicle]
• California Republicans are using liberal calls for single-payer health care in their attack ads against Democrats. It could hurt those running in competitive districts. [The Hill]
• George Skelton on the state’s top-two primary system: “Shady game-playing was not what open primary reformers intended.” [Los Angeles Times]
• Laurene Powell Jobs, the sixth-richest woman in the world, has largely sought to remain out of the spotlight. But as she expands her philanthropy, what is her vision? [The Washington Post]
• A sharp increase in voter turnout in Sacramento Countyfollowed its first all-mail election. What could that mean for voting in other counties? [The Sacramento Bee]
• Facing a unionization push, Tesla said that it is being punished for doing business in California. [The Sacramento Bee]
And Finally …
Fiona Trias, left, and Whitnee Turner, both of Orange County, dine at Saved by the Max, a Saved by the Bell-themed pop-up restaurant in West Hollywood.
Fiona Trias, left, and Whitnee Turner, both of Orange County, dine at Saved by the Max, a Saved by the Bell-themed pop-up restaurant in West Hollywood.
Emily Berl for The New York Times
If you were a fan of the TV show “Saved by the Bell” in the early 1990s, a new pop-up restaurant in West Hollywood has emerged to refill your nostalgia reserves. The restaurant, Saved by the Max, meticulously recreates the neon-lit cafe where the kids from Bayside High School in the fictional Los Angeles suburb of Palisades liked to hang out after class, Frank DeCaro says in his review for The Times.
“When I walked into that place, my knees buckled because it was just perfect,” said Dennis Haskins, the actor who played Principal Richard “The Big Bopper” Belding on the show. “I was looking around for the crew. It was that good.”
Keen-eyed visitors to the restaurant will notice, in an array of school lockers, replicas of props like the brick-size cellphone favored by the preppy bad boy Zack Morris and bottles of the caffeine pills like those abused by Jessie Spano in the series’ most infamous episode. There is even a recreation of Mr. Belding’s office: paneling, pennants and all. Read our full piece here.
California Today goes live at 6 a.m. Pacific time weekdays. Tell us what you want to see: CAtoday@nytimes.com.
California Today is edited by Julie Bloom, who grew up in Los Angeles and graduated from U.C. Berkeley.
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More About Alibaba And Its New Retail

June 12, 2018 Leave a comment

 

 By Paula Rosenblum, Managing Partner

6/12/18

 

Last week, I published a piece about Alibaba’s foray into grocery stores. At the time, I thought it was their first entry into the world of what they call “New Retail” and what we would call “Omnichannel” or “converged” commerce.

Well, I was wrong. It turns out the mammoth Chinese retailer is going into store-based retailing across multiple segments. On May 29, the company announced a co-branded megastore in Beijing, forged by a partnership between Tmall (Alibaba’s retail marketplace) and Intersport, a leading retailer of sporting goods and outdoor equipment. The store name, “Tmall x Intersport” makes it clear that this is a partnership and includes a variety of interactive features to make shopping more engaging and fun.

Apparently, according to this release, Tmall has already provided technology to over 400 brands, including Burberry and Zara, and is only just beginning. The goal for the next twelve months is…wait for it…collaboration with 1,000 brands and “digitizing” 200,000 storefronts nationwide.

This makes Amazon’s purchase of 430+ Whole Foods Market stores seem pretty puny, doesn’t it?

Take a look at this quote I found on the site where you can find all things Alibaba-related, www.alizila.com.

“‘New Retail’ is not just supermarkets and convenience stores. It’s much bigger and more-sweeping than this,” wrote Jeffrey Towson, a Peking University professor and private equity investor who closely follows the development of China’s retail sector, in his blog earlier this year. “‘New Retail’ is a bold extension of Alibaba’s strategy of pure digital competition into the physical world. And it hinges on the strange ‘economics of participation’…’New Retail’ means a massive expansion in their brands and merchants and in the participation and activities of their consumers.”

While we, as a country, are busily threatening China and others with trade tariffs, and Jeff Bezos continues to get acres of free press every time he tosses a new fantasy into the ether, Jack Ma is making this “New Retail” a reality. We talk about Amazon’s “trillion dollar valuation” with awe and wonder, and analysts have started muttering about breaking the company up. In the meanwhile, Alibaba continues to grow in its own growing market. A lot.

Like many people, I assumed after Alibaba’s poor entrée into the US that we’d never hear from them much again…but it turns out the company is doing everything Amazon is doing…only more, better and faster.

According to Alibaba Group’s annual report, the company grew its revenue 58% in FYE 2018, its profits over 40% and generated free cash flow of USD $15.8 billion. The revenue base is “only” USD $39 billion, but at its current growth rates, it will be catching up to Amazon’s $200 billion quickly. They’ve gone from 454 million annual shoppers in March 2017 to 552 million annual shoppers in 2018…that’s 22% YoY growth. And they’ve only just begun their “New Retail” enterprises. Just wow.

I suspect sooner or later, Alibaba will get it right and have offerings for US consumers that are more attractive than its original website, 11Main.

A long time ago (over a decade), I coined a term that never quite caught on. It was TECC….technology-enabled customer centricity. It’s too many words to be catchy, but that’s really where we’ve gone, and it’s really the essence of the New Retail. The combination of people, product and technology is powerful and leads to a superior customer experience. Perhaps we can finally recognize that the possibility does exist, and that retailers (besides Amazon) have made some real progress in the US as well.

I truly believe Amazon, with its 3rd party Prime sellers (I remain completely unsatisfied with many of those experiences), has opened a crease for other retailers who can be reasonably fast and on-point with their pricing and products. Fun fact: if you buy something from a 3rd party Prime seller, you cannot get a replacement product. The only thing that Amazon can/will do is give you your money back. That means you have to be willing, as a consumer, to start the whole process over again. I’m not, and now my never-Amazon purchases have extended from big screen TVs to cases of cat food, to cases of baby food, to Indian spices.

It’s time to shake off the forces of negativity. US retailers really can succeed in an Amazon world…because as it turns out, Amazon has to make money too. And when you have to make money, you cut corners here and there.

It’s also time to shake off the forces of denial. While we remain, for now, the world’s richest market, other countries are rapidly coming up behind us, and will likely take the lead. And the retailers who service those markets are rising to meet them. Let’s not forget, China has been around for thousands of years. The country is recovering from years of Communist control, and becoming a market to be reckoned with.

Alibaba really surprised me this week, and you can be sure I’m going to be watching the company far more closely in the future.

Categories: Uncategorized

The Candid Voice in Retail Technology:Objective Insights, Pragmatic Advice

June 12, 2018 Leave a comment

 

Musings On eCom, The Store, And The Retail Renaissance

2017 was the year of the so-called “Retail Apocalypse.” If the common wisdom was to be believed, stores were closing at a record pace, brands were dying or being subsumed by other, stronger players, and every retailer was terrified that consumers’ digital shopping habits would leave them in the dust.

But in 2018, retailers are getting over their panic that giant eComm players like Amazon will disintermediate their brands into oblivion. RSR can see this in a year-over-year comparison of how retailers rate the importance of the selling channels. While one-half of retailers in our surveys have consistently have told us that they believe that “stores PLUS digital” is the key to the future, in 2017 the other half favored digital over stores (34% compared to only 11%) as “more important”. This year that has flipped to stores over digital (29% vs. 20%).

Nonetheless, most in the industry think that even conservative retailers must inevitably move to a “stores + digital” strategy if they want to continue to connect to consumers and how they shop. There’s just no stopping that train. The inevitability of that is why we at RSR don’t believe in the so-called “retail apocalypse”. In fact, what’s happening now should be called “Retail’s Renaissance”.

That is what Deloitte Consulting’s Preeti Pincha called the current state of Retail in a presentation she made at the Pitney Bowes’ (R)evolution conference in May. In her talk, she made these points:

  • In the USA, unemployment is near an all-time low,
  • Customer confidence is high,
  • The stock market is higher,
  • And consumer debt is low!
  • All of these point to a healthy consumer economy, and sure enough, last year the Retail industry grew faster than the GDP, 3.5% vs. 2.3%.
  • So what’s the problem? There’s a quote that I’ve been using in my speeches lately, from science fiction author William Gibson, that “the future is already here – it’s just not evenly distributed.” According to Deloitte’s Pincha, the retail market is bifurcating, with most new discretionary income going to the upper 20% of wage earners. And for the lower 40%? Well, for them items that used to be discretionary – for example, smart mobile phones and expensive mobile network access contracts – are now perceived as non-discretionary, adding to their already burdened budgets. Retailers that have a “balanced” value offering (a little something for everyone) are the most constrained in this environment (and yes, those retailers are closing stores). But “price based” retailers are seeing good growth and are opening stores, and “premier” retailers are seeing better growth and are also opening stores. (Editor’s Note: check out the Deloitte Insights report, The Great Retail Bifurcation, for more details).
  • But the Deloitte Insights report also points out that higher-end consumers shop more in the digital domain, while lower-end consumers tend to favor the stores. In the Retail Renaissance, “digital” is to society what the printing press was to the European 14th Century Cultural Renaissance. Consumers who don’t use digital to enrich their lives will be like people who couldn’t read in the 1500’s.
  • From our point of view, retailers can’t take any solace in the fact that today a preference towards digital shopping happens mostly in the upper echelons of our consumer culture. No retailer can afford to take its time any more when it comes to interlacing the digital and the physical together in the store. That became clear when Amazon bought Whole Foods, and other grocers – never anyone’s pick to be first on the block with the latest and greatest in technology – surely took notice.
  • In this week’s Retail Paradox Weekly, my RSR partner Paula discusses how the giant Chinese eCommerce retailer Alibaba is making its move into physical stores, an action similar – but even more aggressive – than Amazon’s foray into grocery stores. The point in both cases is this: both Amazon and Alibaba come into the market with a digital-first strategy, not a store-first one, and they already have a full suite of capabilities to weave into the store experience. How different that is than what we have seen from store-based retailers in the last ten years!

For traditional retailers, investments in digital are made very cautiously and in serial fashion. Experimentation is rare, and retailers hate to “waste” money – so if they start something, they have an expectation that it will work, and that means that they are probably not breaking any new ground. And then there’s “the past”, which now feels more like a boat anchor than a legacy. In our forthcoming study on the state of eCommerce in Retail, we learn that the top inhibitors that retailers identify standing in the way of taking advantage of the digital domain are all too familiar: the existing technology infrastructure, lack of capital, and organizational resistance (in that order). Amazon and Alibaba don’t have those problems to contend with.

So… the future is indeed already here – but it is not evenly distributed. Consumers are already living in the digital/physical world, irrespective of national borders, supply chains, or physical store walls. This renaissance is (as Pitney Bowes aptly named its conference) truly a (R)evolution. It even affects us at RSR; our eCommerce studies are starting to have an element of “the store” in them, and our “store” studies are starting to bleed into eCommerce. It’s a reflection of reality.

 

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Amazon Doesn’t Dominate Private-Label Sales (Yet)

June 10, 2018 Leave a comment

 

Batteries and tools are big sellers, but fashion is a work in progress

Author: Krista Garcia

June 4, 2018

If it seems like Amazon dominates most online retail categories, that’s because it does.

According to a new Q1 2018 study by marketing analytics platform Jumpshot, Amazon has more than 80% market share across categories on average. It has higher shares for commodity products like batteries (97%), tools (93%) and cleaning supplies (88%), for which many consumers care less about brand than price.

That said, Amazon doesn’t take the lion’s share of private-label conversions—at least for the time being. Amazon’s biggest private-label category, ranked by conversions, is electronics (45%), making up nearly half of its total. Home (16%), office (14%) and pets (5%) take smaller pieces of the pie. When looking at Amazon’s private labels compared with Macy’s, Target and Walmart, Amazon takes a 61% share, vs. 39% for those other three retailers combined. However, when you remove electronics, Amazon’s share shrinks to 26%.

There is no official record or count of Amazon’s private labels, but in March 2018, L2 reported that Amazon had 80 private labels, 86% of which were in the apparel, shoes and jewelry category. Health and household (5%) and home and kitchen (4%) were a distant second and third. This signals Amazon’s continued intent to become a go-to source for online fashion, yet at least in Q1 2018, the sales weren’t there yet.

According to a February 2018 Coresight Research assessment of Amazon Fashion, products from Amazon’s private apparel labels only made up 0.1% of the clothing sold on the site. This reflects the long tail of brands on Amazon—the 30 that are most listed only account for 30% of the total—and also shows that there is room for private-label growth on the site. The most listed private label was Lark & Ro, making up more than half (54%) of Amazon’s private-label listings. Women’s dresses and blazers/suiting were the top two items listed under the Lark & Ro umbrella.

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The top apparel and footwear brands bought in the past year, though, were Nike (16.8%), Under Armour (13.8%) and Hanes (12.9%), according to a separate survey by Coresight Research, conducted in January 2018. Athletic gear, underwear, socks and t-shirts were more commonly bought than items like dresses and work clothing, though clearly Amazon is making a greater fashion push, given that there are more than six times the number of Lark & Ro items listed than Amazon Essentials, which include staples like activewear, sleepwear and jackets.

Roughly 11% of US internet users had bought private-label apparel on Amazon, and 18.8% were interested in trying it. Those ages 18 to 29 had greater interest in trying these labels (25.2%), which would also bode well for growth despite the fact Amazon is still viewed as an online source of staples, not style.

On Monday, SunTrust released an analyst note that estimated Amazon’s private labels would bring in $7.5 billion in revenues this year, soaring to $25 billion by 2022. “Private label is one of the highly under appreciated trends within Amazon, in our view, which over time should give the company a strong ‘unfair’ competitive advantage. ‘Unfair’ because it’ll be very difficult to dislodge the company once it attains it; fair because it’s earned, not bestowed,” wrote SunTrust analyst Youssef Squali.


Categories: Uncategorized

Right ERP Can Help Simplify the Ever-Changing Business of Manufacturing

June 8, 2018 Leave a comment

Right ERP Can Help Simplify the Ever-Changing Business of Manufacturing
Introduction
As the manufacturing sector is poised to enter a new era—with additive manufacturing,
cluster manufacturing, and near-shoring—and as digitization of the shop floor is creating new
connections and new data streams, the need for responsiveness is more critical than ever.
Organizations must turn the explosion of data they have into intelligence and insights to support

extended supply chain. But over time, the ERP system—originally intended to automate and
integrate business activities for improved productivity—starts becoming a real drag, literally,
dragging down operational performance.
Complexity Creep
Legacy systems built a decade ago met the needs of a very different generation of users. Many
manufacturers followed a path of adding on new technology to meet new requirements with
the end result of “complexity creep.” This complexity exacts a high toll on the organization.
Invisible to the eye, it’s akin to a virus that penetrates the DNA of the organization, impeding
responsiveness and agility. It’s pervasive and it becomes more evident as companies grow and
attempt to address new and emerging requirements. To use another analogy, complexity is like a
“governor”—a limiting device that prevents organizations from reaching top speed and
optimal performance.
Complexity is particularly detrimental in the area of decision making. “It takes too long and
it’s too difficult to get the information that’s needed!” is the lament from many an employee.
Research1
shows the biggest request on the ERP wish list is to be “simpler to use” for everyone
in the organization.
Looking ahead, the need for responsiveness will only become more pronounced. As more new
and emerging digital technologies become part of the manufacturing landscape, we build more
connections. And as we become more connected, building the Internet of Things, we generate
more data. And as data grows, we need new and faster ways to drive insight and actions, and
easier ways to access information to support decision making. This need for responsiveness is
placing new and different demands on ERP systems.
Manufacturers must have the right ERP systems in place to move confidently forward in the new
manufacturing era, and simplicity is paramount—key to increasing the reach of ERP to every part
of an organization, making it as useful and usable on the shop floor as it is in the boardroom.
1cite RedShift 2014 survey research, http://www.epicor.com/company/whats-next.aspx
1
How the Right ERP Can Help Simplify the Ever-Changing Business of Manufacturing
Simplifying ERP
It’s a misconception that in order to gain simplicity, ERP must be “dumbed down.” To the
contrary, simplicity doesn’t mean scaling back on functionality; it means finding new ways to
make ERP easy and intuitive to use, deploy, and manage. It’s not just about ditching clunky
interfaces, it’s about redefining the relationship people have with ERP. It means removing the
barriers to accessing information and minimizing steps in the flow. And it means leveraging new
means of visualizing, interacting, and consuming information to provide actionable insights to the
whole organization.
X Strategically it’s about supporting a management team’s ability to access information
and respond to changes in the business and the market that allows them to be in greater
control. Doing so requires getting the right information, in the context of the decisions
that need to be made in a form that can be quickly digested and with the ability to take
immediate action.
X Operationally it means being able to react to day to day requirements and changes,
dynamically managing business activity, automating and optimizing processes, and
dealing with exceptions as they happen, where they happen. This is the backbone of any
business and it demands comprehensive, workflow–enabled, industry-specific, globallycompliant,
integrated ERP.
X Externally it’s about supporting an ongoing collaborative exchange with customers and
partners. It’s about providing differentiated service levels through every touch point with
the organization, being able to identify problems and opportunities, then empowering
the business to act quickly and decisively.
X Personally it’s about valuing peoples’ time, leveraging their knowledge and experience,
empowering them to manage exceptions in the moment while embedding and
automating best practice processes wherever possible. It’s about supporting productivity,
ease, and simplicity of use.
Strategic
External
Personal Operational
2
How the Right ERP Can Help Simplify the Ever-Changing Business of Manufacturing
Simplifying Deployment
Simplification is also about new and improved ways of deploying ERP. Many manufacturers
are moving to a cloud-based model as more and more companies see the benefits of a single,
global deployment in providing greater visibility and control, plus the advantages of moving
specific workloads to the cloud. The cloud removes the onus of system upkeep and maintenance,
removing a heavy IT burden, and freeing up resources to focus on other areas of innovation
within the company.
Cloud ERP supports today’s most pressing technology imperatives—the desire to accelerate speed
to value through cloud delivery models; the need to reduce IT complexity and simplify integration;
the responsibility to address data security and compliance mandates; and the need to improve
collaboration across the enterprise.
Epicor ERP: Simplifying the Business
of Manufacturing
Epicor has eliminated complexity to make ERP easier to use, more collaborative, and more
responsive. With Epicor ERP, companies gain a technology platform that can support them
as they conduct business today and in the future—on any device, anytime, anywhere in the
world. Optimized for the new world of work—encompassing mobile and social business—
Epicor ERP gives manufacturers a powerful platform to adapt and thrive in the era of digital
disruption. Through the incorporation of technologies such as mobile and social into Epicor ERP,
manufacturers have the opportunity to amp up responsiveness and agility, and to close time lags
and gaps between the boardroom and the shop floor, and between the company and
its customers.
Epicor ERP: User Interaction Tools
Responsiveness demands simplicity with tools designed to meet the specific needs of specific
users. Epicor ERP makes user interaction fast, easy, and painless.
X Mobile: The Epicor ERP touch-enabled, intuitive Microsoft Windows® user interface (UI)
is designed to work with touch screen devices—empowering users to work the way
they want.
X Social: Epicor Social Enterprise allows users to collaborate in real time around orders,
customers, suppliers, configurations, and service issues, and mitigate “information
overload” through activity stream management, so they can follow application data or
people alerts on an ad-hoc basis.
3
How the Right ERP Can Help Simplify the Ever-Changing Business of Manufacturing
Imagine interacting with your ERP in a completely new way. No more menus, no more transaction
screens, no more complexity—straight to the point, 24/7, from anywhere. Every user can choose
what they stream into their feed, identifying trigger events relating to the subjects that are
important to them—customers, orders, products, machines, assets, cash, inventory, etc.
Underlying this is the ERP system engine—hidden from view, but still there. Employees interact
with it direct from their stream, acting on information they are receiving in real time, collaborating
with colleagues and sharing their insight, requesting and receiving advice, resolving issues, and
leveraging opportunities. They can be processing transactions or redesigning processes; in this
way they become more responsive and more agile.
X Dashboards: Epicor ERP dashboards provide real actionable insight without the
complexity of the source transactional systems. The “right click open with” feature allows
users to access other related forms and drill down to find necessary information from
any dashboard. Having accurate information at hand via reports and dashboards enables
organizations to answer important day-to-day operational questions and keep a finger on
the pulse of the business.
X Search: Consumer-grade search anywhere capabilities allows employees to find the
information they are looking for quickly and easily. “Partial search” enables them to
locate information by typing in only the first few letters or words in the search box.
4
How the Right ERP Can Help Simplify the Ever-Changing Business of Manufacturing
Epicor ERP: Simplifying Deployment
and Maintenance
Epicor ERP enables manufacturers to spend less time deploying and maintaining their ERP so they
can focus on the business of manufacturing.
Cloud: ERP deployment flexibility is key to building agile organizations. Epicor enables
organizations to deploy in the cloud today and on premises down the road—or vice versa. The
Epicor cloud software strategy is virtually unique in that it offers complete choice and flexibility in
deployment in the cloud or on your premises.
Solution Workbench: ERP customizations and configurations have long been the bane of
existence for IT. While necessary to make the software responsive and tailored to specific
company needs and demands, in the past they have been a source of frustration because they
would not carry over when moving to a new software release. The Epicor Solution Workbench
tool makes it very easy for organizations to package up these customizations and configurations
and transport them between versions.
Closing
By simplifying ERP, organizations can attain greater responsiveness. With greater responsiveness,
organizations can adapt more quickly to new requirements and in response to new disruptive
forces, opportunities, and threats.
Through a focus on simplicity, Epicor ERP enables bringing information to those who need it, at
the moment they need it, in a form that they can use, and in a way that is actionable—in real
time and anywhere.

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