2019 Top 12 OnlineTrends

2019 Online Trends

  1. 50% of the world’s population has access to the internet
  2. E-commerce sales are up 12.4% over the prior year
  3. E-commerce is 15% of  US retail sales
  4. Mobile advertising now accounts for 33%
  5. – Google and Facebook still account for the majority of online ad revenue
  6. – Amazon, Twitter, Snapchat, and Pinterest growing ad revenues fast
  7. – Google’s ad revenue grew 1.4 times over the past nine quarters and Facebook’s grew 1.9 times
  8. – 6.3 hours each day with digital media
  9. – 47 million people have installed Amazon Echoes
  10. – 2.4 billion interactive game players in the world
  11. – Cloud services revenues of Google, Amazon, and Microsoft are  $14 billion, 58% increase.
  12. – 26% of US adults consider themselves online “almost constantly”
  13. – 39% of 18 to 29 year-olds are online constantly

What’s killing local businesses?

Local businesses are being killed off.  Storefronts are empty.  More and more main street looks like desolation row. Malls have become decaying relics.

Each local business that closes its doors decreases local shoppers desire to shop on main street. People like EXCITEMENT.  They like CHOICE.  But most of all people like other PEOPLE.

See other people shopping is what makes local shopping attractive.  When shoppers walk past an empty store or restaurant the overall local BRAND is diminished.  How bad is it – it is being called The Retail Apocalypse 2019.   

 

Empty Shopping Mall 2

Retail Apocalypse
The destruction of local businesses and communities

Sinéad Baker in the April 2019 Business Insider article writes that the retail apocalypse has claimed 6,000 US stores in 2019 so far, more than the number that shut down in all of 2018.

Local Towns

In the article Baker summarizes what is happening to local retail:

  • More store closings have been announced already this year than in all of 2018, according to new research.
  • A report from Coresight Research found the retail apocalypse to be continuing, with 5,994 store closings announced in the US this year compared with 5,864 in all of 2018.
  • Some retailers including Fred’s and Family Dollar are closing select stores in a bid to stay profitable, while chains like Payless have announced they are shuttering all of their stores.
  • One report predicted that 75,000 stores would close across North America by 2026 as reliance on e-commerce rises.

If you don’t know what is happening to local retail then you, like Rip Van Winkle, have been sleeping.  The Tech Giants and Retail Chains are culprits in the Retail Apocalypse, but the actual killers are the denial and ignorance of local business owners.

There is a well-worn saying, “What you don’t know won’t hurt you.”  The writer,  Margaret Atwood, has her contrary version of the saying which is, “Sometimes what you don’t know can hurt you very much.”

Ignorance

I am of the school that thinks ignorance is NOT bliss and that “what you don’t know can and will hurt you.”  There is NO BLISS to be found in ignorance.  Think about what you know now and how if you knew what you know now ten, fifteen, or twenty years ago the mistakes you could have avoided.

So, what’s killing off local businesses is first, foremost, and last – the ignorance and denial of local business owners.  The excuses for ignorance are that business owners are too busy to see what is happening – that is total and complete nonsense.  Denial is something else entirely.  Here’s a denial quote pretty much sums it up, “People don’t know very much.  They only think they know to make themselves feel better.”

Denial

It is the JOB of business owners to get their heads out of the “too busy” sand.  Time to stand up and see reality.  Denial is your head in the sand.

Head in Sand

This is reality – local businesses are getting killed off.  There is not one local business owner who is not afraid.  The massacre is not going to stop.  The killing isn’t an accident.

IGNORANCE #1:  Amazon earns $282.7 billion dollars a year in revenue, it controls over 50% of online sales, shoppers love shopping online, and Amazon makes it easier and easier to shop.  Think – one-day delivery.  Amazon is going after EVERY local business.

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Every local business from the pizza joint to the local jeweler NEEDS to understand IGNORANCE #1.  Deny it and you have a death wish.  A person with a death wish is shown the danger and chooses to deny it.

IGNORANCE #2:  Amazon’s success is built around its customer list.  Amazon doesn’t advertise – Bezos thinks advertising is a waste of money.  Instead, Amazon communicates.  Shoppers are connected 24/7 and they LIKE, WANT, and DEMAND communication.  They HATE advertising.  Deny IGNORANCE #2 and you go from having a death wish to business suicide.

Too tough.  Nasty, Politically incorrect.  Nope.  It is reality.  Local business owners, if they intend to survive need to understand that it is their IGNORANCE and DENIAL that will cause them to fail.

HOW TO GET SMART, FACE REALITY, & WIN

Nobody wants to fail.  To keep from letting Amazon and the Retail Giants drive you to destruction local business owners need to Get Smart, Face Reality, and turn their on their passion to win.  It all starts with LEARNING.

Learning starts when you look around and see something you want to do and say to yourself, “I don’t know how to do it.  I don’t know how to get there.  I know if I don’t do it and get there BAD THINGS are going to happen.”

I know the older I get the more I realize how little I really know.  The good part of knowing you don’t know is that it means you are open to LEARNING.  For example, one of my favorite articles about marketing I found is titled, Amazon is building the world’s largest bird feeder.

The article argues that Amazon’s list is like a gigantic birdfeeder which Amazon uses to attract millions of different kinds of shoppers.  I learned from the article and begin thinking about local businesses and what they don’t know.

Here’s what local businesses both don’t know and if they know are in denial about.

Perhaps, the most ominous story of 2019 is that Amazon is making one-day delivery to its 105 million customer list. 

Local businesses may have heard about Amazon’s one-day delivery but are still in denial.  Here’s the unvarnished truth – what Amazon does ALL the retail giants will do.  Target just announced its one-day delivery service.   Here’s the point – expect Walmart to do the same.  Ditto for all the retail chains.  This news should be as shocking to a local business as having your doctor say, “You have cancer, heart disease, and PTSD but other than everything is good.”

Local business owners need to make sure they are NOT in denial about one-day delivery.  It means that Amazon, Target, Walmart and the Retail Chains WILL take away more of their customers.  These giants are focused on what today’s shoppers WANT.

Mary Meeker, the smartest coach, in the industry shows you how to win.

Mary Meeker

One person who KNOWS what shoppers want is Mary Meeker.  Meeker is the leading expert on the internet and each year she publishes her Internet Trends report.  The past sixteen years Meeker has presented her findings to the industry.  She has been and continues to be uncannily accurate.  She predicted the rise of Google and Amazon, the growth of Chinese technology, mobile, video, and gaming.  She is a business intellectual legend.  Local business owners should pay attention to what Meeker is telling them.

A quick summary of Meeker’s 2019 shopper trends:

“Amazon stunned analysts and industry watchers in 2014 when managers paid $970 million cash to buy Twitch. The three-year-old streaming site had only 55 million users at the time and catered mostly to people who watched others play video games. The fit with e-commerce escaped most observers. Gaming is the natural evolution of sport for a generation raised with PlayStation and Xbox consoles. It’s also a purely digital experience ripe for transformative business models built in the cloud. Researchers found that 69% of players made in-game purchases, spending an average of $84.67 per year and generate billions in revenues.”

  • Everything will migrate to the cloud. Cloud infrastructure is dominated by Amazon Web Services, Microsoft’s Azure, and Google Cloud.

Meeker concluded that Amazon, Microsoft, and Google will control the cloud and therefore the future.

“Amazon, Alphabet and Microsoft trade at 48x, 20x and 26x forward earnings, respectively. While that may seem expensive, the best part of their business expansion is still ahead as enterprises move more workloads to the cloud.”

IGNORANCE #3:  Any local business owner who doesn’t take the time to understand what Mary Meeker is saying has given up.  I know it sounds harsh but the TRUTH is often harsh.  I want local businesses and local communities to THRIVE.  I want them to see reality, swallow hard, and fight back.

Here are Meeker’s Insights for Local Businesses:

Understand shoppers need for social responsibility.  You’ve all seen the powerful Shriner’s commercials asking for monthly donations, ASPCA the same, ditto for Wounded Warriors – people genuinely care about others.  Shoppers care about local.  Local starts with local businesses working together.  In fact, The most powerful local business strategy is working together.

Conclusion:

It would be simple to say the Tech and Retail Giants are killing local businesses.  It just wouldn’t be true.  The local business owner’s ignorance and denial are the two driving factors behind the death of local businesses.  If and when, local business owners realize they have the power to control their own destinies they will discover a MASSIVE opportunity.

 

Richard Corriere Writing and Research

Books

  1. Going Sane [1].   1975. Citation: Going Sane
  2. The Dream Makers[2]. Citation: Dream Makers
  3. Psychological Fitness[3]. Harcourt, Brace, Jovanovich. CitationL Psychological Fitness
  4. Dream and Waking: The Functional Approach to Dreams.[4] Peace Press. 1980. Citation: Dreaming and Waking
  5. The Functional Analysis of Dreams: A New Theory of Dreaming[5]Citation: The Functional Analysis of Dreams
  6. Life Zones [6].   1987.Citation: Life Zones

 

Published Articles, Presentations and Reports

1975

  1. The Transformation of Dreams. D. Thesis.  University of California, Irvine, 1975. Citation: The Transformation of Dreams

1976

  1. The Transformation of Dreams in Psychotherapy. Psychological and Physiological Studies of Feeling Therapy.  Western Psychological Association. 1976.[8]  PROFESSIONAL PRESENTATION

1977

  1. Toward a new theory of dreaming. Journal of Clinical Psychology. Journal Citation
  2. A Re-Application of the Process Scoring System for Dreams.[10]. Journal Citation
  3. Two preliminary studies on sleep and psychotherapy. Physiology and Behavior. 1977.[11] Journal Citation
  4. The Functional Theory of Dreaming. Paper Presented at California State Psychological Association. 1977[12]  PROFESSIONAL PRESENTATION
  5. The Functional Approach to Dreams in Psychotherapy. Paper Presented at California State Psychological Association. 1977[13] PROFESSIONAL PRESENTATION
  6. Toward a New Theory of Dreaming. Sleep Research, Vol. 6 BIS/BRI, UCLA. 1977. Journal Citation
  7. Longitudinal Changes in Sleep Patterns of Patients. Sleep Research, Vol. 6 BIS/BRI, UCLA. 1977 Journal Citation
  8. K-Complex changes in the sleep records of patients. Sleep Research, Vol. 6 BIS/BRI, UCLA. 1977.[16]

 

1978

  1. Two Preliminary Studies on Sleep and Psychotherapy.   1978. Journal Citation
  2. Psychophysiological correlates of the spontaneous K-Complex. 1978  Journal Citation
  3. Effects of Psychotherapy on REM Time and REM Latency. 1978. [19] 
  4. Applications of the Process Scoring System to Waking, Dream and Therapy Reports. Association for the Psychophysiological Study of Sleep. 1978.[20]  PROFESSIONAL PRESENTATION
  5. Re-Application of the Process Scoring System for Dreams. Association for the Psychophysiological Study of Sleep.  Journal Citation
  6. Applying the Functional Approach to Dreams. Masters Thesis.  Cammer, S.[22]

1979

  1. The Functional Analysis of Dreams: A New Theory of Dreaming. Journal of Clinical Psychology.Journal Citation

[1] Hart, Joseph; Corriere, Richard; and Binder, Jerry.  Going Sane.  Aaronson. 1975.

[2] Corriere, Richard and Hart, Joseph.  The Dream Makers.  Funk and Wagnalls.  1977.

[3] Corriere, Richard and Hart, Joseph.  Psychological Fitness.  Harcourt, Brace, Jovanovich.  1978.

[4] Corriere, Richard; Karle, Werner; Woldenberg, Lee and Hart, Joseph.  Peace Press.  1980.

[5] Corriere, Richard; Karle, Werner; Woldenberg, Lee and Hart, Joseph.  Peace Press.  1980.

[6] Corriere, Richard and McGrady.  Life Zones.  William Morrow and Company. 1986.

[7] Corriere, R.  The Transformation of Dreams.  Ph.D. Thesis.  University of California, Irvine, 1975.

[8] Corriere, R. The Transformation of Dreams in Psychotherapy.  Psychological and Physiological Studies of Feeling Therapy.  Western Psychological Association. 1976

[9] Corriere, R.; Hart, J.; Karle, W; Binder, J.; Gold, S.; & Woldenberg, L.  Toward a New Theory of Dreaming.  Journal of Clinical Psychology, 1977. 33)3), 807-19.

[10] Hartshorn, K.; Corriere, R.; Karle, W; Switzer, A.; Hart, J.; Gold, S.; & Binder, J.  A Re-Application of the Process Scoring System for Dreams.  Journal of Clinical Psychology, 1977. 33)3), 844-48.

[11] Karle, W.; Hopper, M.; Corriere, R.; Hart, J.; & Switzer, A.  Two preliminary studies on sleep and psychotherapy.  Physiology and Behavior. 1977. 19 (3), 419-23.

[12] Woldenberg, L. The Functional Theory of Dreaming.  Symposium presented at the meeting of the California State Psychological Association. 1977

[13] Corriere, R.. The Functional Approach to Dreams in Psychotherapy.  Symposium presented at the meeting of the California State Psychological Association. 1977.

[14] Corriere, R.; Hart, J.; Karle, W.; & Woldenberg, L.  Toward a New Theory of Dreaming.  In Chase, M.H., Walter, P.L. (Eds.).  Sleep Research, Vol. 6 BIS/BRI, UCLA. 1977. 121.

[15] Karle, W.; & Hopper, M..  Longitudinal Changes in Sleep Patterns of Patients.  In Chase, M.H., Walter, P.L. (Eds.).  Sleep Research, Vol. 6 BIS/BRI, UCLA. 1977. 149

[16] Karle, W. & Scott, R.  K-Complex changes in the sleep records of patients.  In Chase, M.H., Walter, P.L. (Eds.). Sleep Research, Vol. 6 BIS/BRI, UCLA. 1977. 151.

[17] Karle, W. & Hopper, M. Two Preliminary Studies on Sleep and Psychotherapy.  Psychophysiology.  15 (3), 1978, 273

[18] Scott, R.; Hopper, M, & Karle, W.  Psychophysiological correlates of the spontaneous K-Complex.  Psychophysiology.  15 (3), 273. 1978

[19] Karle, W.; Corriere, R.; Hart, J.; & Hopper, M. Effects of Psychotherapy on REM Time and REM Latency. Meeting for Psychopysiological Resarch.  Madion.  1978.

[20] Corriere, R.; Karle, W.; & Hart, J.  Applications of the Process Scoring System to Waking, Dream and Therapy Reports.  Association for the Psychophysiological Study of Sleep. 1978.

[21] Hartshorn, K., Corriere, R.; Karle, W.;& Hart, J. Re-Application of the Process Scoring System for Dreams. Association for the Psychophysiological Study of Sleep.  1978

[22] Cammer, S. Applying the Functional Approach to Dreams.  Fielding Institute, Santa Barabara. 1978.

[23] Karle, W; Corriere, R.; Hart, J.; Woldenberg, L The Functional Analysis of Dreams: A New Theory of Dreaming.  Journal of Clinical Psychology Monograph Publications. 1979.

The Rigged Retail Playing Field

Take a look at the chart of America’s monopolies and it is not difficult to understand the the issues facing local businesses – the playing field is rigged.

Emily Stewart writes, “From cellphone providers to beer to cat food, consumers have a lot fewer choices when it comes to buying — even if they don’t know it.” Emily Stewart and America’s monopolies

Stewart shows that the big companies have gotten bigger over the past fifteen years.

In the capitalist system that is what they are supposed to do.  However, local businesses have failed to see, no less understand, the threat the growing monopolies pose to their survival and success.There are 28 million local businesses in America.  The 2019 Department of Labor Statistics confirms what everyone instinctively already knows – local businesses are under threat.  The cause is clear – shoppers have shifted their buying to online and local businesses have not responded.  Amazon has 50% of e-commerce and grows stronger daily.  Jeff Bezos, the founder of Amazon, ominously warned all local businesses, “Your margin is my opportunity.” Retail Business Failures

The bigger companies become the tighter control they place on wages, working conditions, and advancement.  Small local businesses NEED employees and focus on increased wages and advancement in order to grow their businesses.

The financial advantage goes to the bigger company.  The problem is then reflected in weak personal income growth because entrepreneurs are being pushed out of the game. The New Times review of the impact of monopolies

Stewart writes, “In more traditional sectors, such as hardware stores, tobacco, and railroads, concentration is on the rise. And in technology-related fields, including smartphones, social media, and cellphones, in just in the past five or so years, it’s even higher.”

Think of monopolies as movie studios that buy up scripts to keep them off the market.  The bigger a company becomes the more it needs to grow.  Growth comes from gobbling up competitors.

The #1 fact about monopolies is that as they take dominance in market share they use that power to drive up prices.The New York Times and how monopolies drive up prices.  Competitors drive down prices because their battle ground is efficiency and innovation.  Monopolies drive up prices because there is no battleground.  Steward writes, “The fewer options there are, the fewer places consumers have to shop for goods and services, and the less pressure for competitors to keep prices down.”

The big three monopolies are Amazon, Google and Facebook.

Let’s focus on Amazon which is earning an estimated $187 billion per year.   Jeff Bezos is brilliant and his team the best.  These top of the food chain capitalists have rigged the game. Amazon is smart and their focus is growing market share at the expense of every other business in the world.

Amazon’s retail strategy is to enter a business and use its technology and processes to make selling and delivery of products better, faster, and cheaper – AT FIRST.  Amazon uses lower prices to drive out competitors .  Once Amazon has market dominance it increases prices. This behavior is what monopolies do.

Consumers don’t care about monopolies and their impact on local businesses but they should.  Monopolies take money out of local communities.Money Stays in LocalThey have been convinced that convenience is important than choice.  A belief that will come back to haunt them as local communities become ghost towns where stacks of Amazon boxes on front porches.  Keep in mind that local communities need revenue to support schools, infrastructure, parks, trash pick, and all the other things that make local communities thrive and a place to live.

FACT: Amazon and the other monopolies take the financial lifeblood away from local communities.