The Evolution of the Retail Industry:
THE 21ST CENTURY RETAIL MODEL
(cost estimates include all costs of Logistics & Distribution)
In the 19th Century a Consumer could often buy quality product at the best price and direct from the Manufacturer or the Grower for 20 cents. Eating locally is a delicious way to reduce your impact on the environment, all the while supporting local farmers and food producers and thus invigorating the local economy and strengthening your community. At the end of the 20th Century Manufacturers could still produce that same product for 20 cents, at a time when most retail purchases were via the traditional Wholesale/Retail Network. It cost another 80 cents to operate this Network and that same product was purchased by the Consumer for $1.00.
We are now into the 21st Century - often referred to as the Information Age, and there are other options for the discerning Global Consumer. Right round the world local produce markets are on the increase and thriving. Shopping On-line often means shopping from the safety & privacy of your own home and eliminating the middleman. Currently about 10% of shopping in Australia is On-line. This figure is on the increase.
The end of the 20th Century saw the evolution of Order Consolidation Services (OCS). Order Consolidation Services buy directly from the Manufacturers and offer members discounts. However, giant multinational retailers and their linked department stores need also to master their own On-line NetworkMarking (ONM) systems to survive the 21st Century. Unfortunately for them the complete transition to ONM is slow and costly.
OCS carry stock and buy direct from Manufactures and must continue to evolve in order to offer the Consumer a fairer price. Every day sees more and more Manufacturers approaching OCS organizations for efficient distribution of their products. Manufacturers see this as the way to save their business from ever increasing marketing, transportation, and advertising costs. (The restructured Amway, is still the world's largest Retailer and operates OCS warehouses in some 90+ countries and buys for its members from over 4000 manufacturers. Last year saw some 50 million dollars paid back as "Profit Share" to pin-ranked Australian IBO Members).
Both ONM & OCS orders can be placed by telephone, fax or internet.
For every person ONM opportunities are already there. As an ONM IBO you do not need to carry stock and the overheads are minimal. You do, however, really need to be conversant with the internet. (There is free information and much much more on this in the "Commit Yourself" section). With ONM there is negligible setup costs and no ongoing membership costs and nor is there any obligation to buy a certain amount of product. ONM offers a set commission paid on each and every transaction downline of your initial purchase. You need not even need to be an IBO with your own Affiliate Network to make an ONM purchase!
The On-Line NetworkMarketing IBO utilizes linked department stores to master his or her own Affiliate Marketing. ONM is a web-based marketing practice where one business rewards one or more affiliates for each visitor or customer brought about by the linked department stores. eBay is one of the most successful examples of this. And today there are very real opportunities for each and every one of us to become the "On-Line Amway of Tomorrow"!
All in all, this evolution of the retail industry is all part of the natural progression affecting mankind survival in a democratic society. For Consumers the correct road for survival into the 21st Century is to completely eliminate the middle man and buy top quality product at the best price and direct from the Manufacturer or Grower.
For those who are keen on drawing circles - take a look here! 