Target Digital Capitalism
One example of C-level executives on the righteous digital march to capitalize on changing landscapes of consumer opportunity is the highly competitive and successful retailer, Target. During their guidance call last week Target announced they will invest more than $1 billion to restructure, upgrade and accelerate their technology foundation to build on and accelerate their digital sales gains. Casey Carl, Target’s chief strategy officer announced a whopping 69 percent increase in mobile conversions and a 44 percent year-over-year jump in mobile traffic.
Smartly, with these revenue-energizing results, Target management will invest heavily to reward the evolving digital lives of consumers everywhere. As example of their hyper-performing digital success, Target executives highlighted digital results through their Cartwheel mobile app which has been downloaded more than13 million times and is financially lauded with more than $1 billion in revenue since launch in May 2013.
Digital capitalism clearly catalysts and demands company-wide fiduciary centric change. Retail CEOs need to counteract this change through swift and exacting digital investments, enhancements and legacy platform deletions.
“Digital capitalism really works best and most efficiently for consumers rather than for brands and retailers.”
Consumer demand for lowest prices and instant e-gratification deals are hard-forcing inutile retail models into fast-cyclones of time-to-volume, razor sharp digital foundations. These have caused savvy retailers like Target to invest heavily and smartly in their digital infrastructures to best competitively serve consumers hunger for fast, effective and low cost shopping returns.
Manufacturers also need to quickly trigger and energize smart digital investments to ensure brand and product forecasted strategies are realized. Retailers are running, creating, investing and building digital capitalism into their omni-channel profit generating machines as accented by Targets announcement. Manufacturers also need to re-congress and digitally invest with consumers and retailers alike to accelerate their own competitive advantage in the language of product turns, brand preference. For manufacturers and retailers alike it is clearly time to cost-dump what is not working to reinvest and accelerate in digital capitalism, the core market growth engine to attract and convert hungry and demanding digital shoppers.
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