Reflections on Disruptions

This week, I bought my Optimum Nutrition (ON) Whey Protein. I went first to Shangri-la Mall in EDSA to check on prices at Toby’s Sports and found that it’s retailing for Php4,150. Shang is just a tricycle ride away from my place so it’s not much of a hassle. I used to buy my protein powder in Cash & Carry Makati for Php3,000 but it would take me at least 2 hours to get there and back. Online Store Luckily for me, there’s another option where I can buy my protein powder now without going out of my house: online stores. These online stores, like Lazada or Shopee, were not around a few years ago. I checked on the prices at Lazada and can you guess how much it’s listed there? Here’s the link: https://bit.ly/3b4XCln Okay, I’m sure you won’t look for it so I’m stating it here. It’s Php3,240. Almost Php1,000 difference from the mall price. Disruptions Mall stores of course can’t compete in terms of price with online stores because physical stores have to pay rent. A big chunk of the Php1,000 price difference goes to paying rent, and then maybe some goes to paying the inventory displayed, the aircon inside the store, the employees who assisted me, etc. These costs are not present in an online store. If you’re a seller in these marketplaces, rent is free, you just have to service the customers well so that your reviews and ratings will go up and be the first to be listed if someone searches for “whey protein”. Data is the new oil When I first bought my whey protein in Lazada this week, I actually paid Php3,180, free delivery next day (so convenient). Now that they know that I’m a customer, I’m looking at the listed price now at Php3,240 and then maybe it’s no longer free delivery. Data is the new oil indeed! Even if they increase the price a bit, of course I will still choose to shop online because it’s still cheaper. Imagine for the remaining years of my life, I will no longer buy my whey inside malls. Imagine the lost revenues for these malls (for now it's not significant yet). In the US though, physical retail stores are closing one by one. More to come These disruptions are not just happening in retail market (like how I bought my Whey) but also in entertainment (Youtube), in journalism (Rappler), in transportation (Angkas and Grab), in music (Spotify) and a lot more. The world is changing, and it is changing fast. As people, we must adapt to these changes so we can take advantage of it rather than suffer from it. Like what Heraclitus said, “The only constant in life is change.” Do you share a similar experience or see similar trends? Let me know in the comments section.

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