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Archive for January, 2013

New business models

Thursday, January 17th, 2013

I was at a function the other night where Steve Oliver, co-founder and CEO of Entertainment Magpie was talking about how he started the company and some the good, and not so good things that happened whilst he was building his multi-million pound business.

Apart from thinking, ‘what a journey, and its not finished yet’, I was struck by just how much, we in the UK, have changed in terms of how we buy, what we expect from the seller and the processes that are needed to make that transaction happen.

In a matter of weeks, several major UK retailers have gone into administration and closed or are closing their outlets. Others are struggling and a few are growing. This is in contrast to many on-line businesses that are growing successfully. When I spoke to a friend of mine a couple of weeks ago regarding the so-called sale at the HMV stores, the comment, without hesitation, was ‘but I buy on-line’.

How many retailers over the next twelve months, are going to see their turnover and profits fall due to the increasing and sustainable appetite for on line anything.

In the meantime, the business model based on consumers selling unwanted items and the buyer refurbishing and re-selling those items, will continue apace. I look forward to new adaptations of the traditional business models in the future.

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