Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting to read:%0A%0A {0} %0A%0A {1}
the-value-of-e-commerce-and-big-data-in-service-delivery the-value-of-e-commerce-and-big-data-in-service-delivery_mobile

The Value of E-Commerce and Big Data in Service Delivery



A recent study has found that 30% of e-Commerce initiatives will deliver no value to retailers. The study by Greenlight Commerce shines a spotlight not on the failure of the digital channel itself, but on the ability of those wishing to deliver through this route to implement their initiatives. Typically, in response to the perceived market threat / opportunity, projects were rushed (48%), and success metrics were not properly assessed and measured (87%). Both Amazon and e-Bay launched in 1995. As Warren Buffet once said, ‘You don’t want to give Jeff Bezos a 7-year head start’. However, many retailers have given him a 24-year head start, allowing the likes of Amazon to accrue incredible economies of learning during this period. With the only real retail strategy now being omni-channel (in varying mixes), a failure to implement a successful online channel affects overall business performance and creates a competitive disadvantage. Another study showed that 90% of UK customers now use Amazon, and 25% have an Amazon Prime subscription (not bad for a book seller). In the States, Amazon’s market share of online sales exceeds 50%; whereas for the rest of the world it is just 6%. The question maybe should not be about online vs offline, but more about the increasing prospect for dominance of a couple of global players in this space.

Takin’ it to the Streets

Carrying out pretty much any commercial activity has historically required having a real estate base from which to do so; whether that is an office, a shop or another structure. Real estate value (/cost) is most significantly influenced by the location of the asset. This is turn influences the likelihood of achieving greater massing and higher value uses; but the primary driver is being at high footfall node; typically greatest at the centre of a city. However, as the world shifts to decentralised / distributed activities old paradigms about location may start to break. This increases the importance of seeking out customers rather than being reliant on them coming to you. An example of this is found in the fast food industry where, with a consumer shift to online and mobile ordering, less footfall is arriving at restaurants. Burger King has developed a customer centric response to this. In cities suffering significant traffic congestion (e.g. Mexico City and LA), it will offer a new service delivering meals directly to your car. This is facilitated by big data and location analytics technologies that didn’t exist 10 years ago; now making it possible to predict areas of congestion and arrange resources accordingly. Fast food is an industry where one-hour delivery slots don’t cut it. Distributed customer demand makes having a network that can satisfy dispersed delivery more important than having a single central node; with corresponding impacts for real estate.

The above article is written by Richard Pickering, Cushman & Wakefield’s Head of Futures Strategy, and originally appeared on Cushman & Wakefield UK’s Futures blog.

Related Insights

card image
Insights • Sustainability

Banking on Green Office Buildings in Singapore

Does sustainability pay? We think it does help performance.
Xian Yang Wong • 21/11/2022
Cushman & Wakefield Q2 Asia Pacific Webinar: Spotlight on Singapore
Insights • Investment

Cushman & Wakefield Q2 Asia Pacific Webinar: Spotlight on Singapore

As Asia Pacific begins to show signs of recovery from COVID-19, led by a rebound originating from China, what is the current status of the commercial real estate market and where is it headed?
Anna Town • 13/08/2021

Related Stories

Dexcom Philippines New Office Fit-out Project
Dexcom Philippines • Healthcare
Learn More
Cushman & Wakefield Stories Philippines Inc. • Travel
Learn More
Cushman & Wakefield Stories
OMD Philippines • Advertising
Learn More
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All