Retail Value Curves

I thought the retail value curves from the Powerpoint deck were interesting. I could really see how technology would drive that. Early on, technology was not available for personalization, so the only way a company could really differentiate themselves was through operations (either quantity or quality). Then, technology changed things in two ways - first, it made operational excellence easier, and second, it made mass personalization possible. And once operational excellence was easier to attain, companies needed to use personalization to differentiate themselves.


Generally speaking, personalization and a shopping "experience" cost more, though technology has certainly lowered the associated costs. I would usually wonder if the overspending of the last several decades and current recession would lead consumers to pull back on spending and thus lower the demand for these. However, given the way that technology has enabled mass personalization at cheaper prices, I wouldn't be surprised if consumers don't cut back as much as they would have, say, fifty years ago. And I think companies will be loathe to diminish a customer's shopping experience at the risk that the customer will spend his small shopping allowance somewhere else.

Random thought: It's so nice to see green grass in my yard. I know it's only early February and we haven't seen the last of the snow, but I enjoy it anyway.