The state of the economy and how long it will take to get well was the opening question posed by Brett Hurt to this group of leading venture capitalists. The answer to how long it will take ranged from October 18 (no year or time of day was stipulated) to “late” 2010. There was a feeling that it may get worse before it gets better as there has still been no sign of relief in real estate and credit card debt along with other strains on the economy. How well each Internet company fairs will vary by vertical retail segment and could range from zero to 40% down during this protracted slump. Although, for the serious players in for the long haul, this is a good time to invest and come out in even better shape on the other end. There were some great businesses built during the Depression but the brands built need to resonate with the customer. Areas of focus will be 1:1 personalization, CRM and behavioral targeting.
There was an excellent discussion about the future of mobile that could have turned into an entire session by itself. The iPhone and the meteoric appearance of over 10,000 applications and sales estimated at half a billion dollars is a real indication that mobile (not just Apple) is the next wave of retail. This is the way to “make the physical world – interactive”. As far as the “Year of Mobile”, it could be spread out over a number of years.
Some of the investors think that Social Marketing including Twitter, Facebook and YouTube will be a tough retail environment. The question is, “why are people going there”? Is it to shop? Chat rooms/talk forums and boards may be easier for retail message integration. In either case the content delivered must be an engaging dialog or provide entertainment. One commented, “Social Media is affiliations with people, brands and groups–a good place to listen to the customer and a good place to improve retention.”
This was one of the most interesting sessions in that the investors take a slightly longer view of eCommerce than some retailers.
A great way for us to readjust our thinking “for the long haul”.
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