Go Where the Deep Water Is.

books Mar 30, 2020

As of November, Nike no longer sells directly on Amazon. Nike is not alone. Birkenstock, Louis Vuitton, North Face, Patagonia, Asics, Ralph Lauren, Rolex and Vans do not sell directly on Amazon either. Nestlé Nespresso dominates a huge direct-to-consumer channel and paid Starbucks $7 billion to take over the sale of coffee and capsules for Nespresso machines. The new Disney+ streaming service cut out the middleman and kicked Netflix in the shins on the way out the door.

These smart firms want to own the data and chart their own course into higher lifetime customer value, margin and sustainability in a world where 85-90% of retail purchases are still done in physical stores. Sure, Amazon dominates the online retail world, capturing more than 50% of all online sales, but don’t forget that 85-90% of all retail purchases are still completed in physical stores.

These firms know, in order to survive the Amazon apocalypse, they must shed inefficiencies and middlemen, deliver...

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