Fast Delivery…Even Faster

Imagine ordering an item online, and having it delivered within the hour. Sounds impossible right? Well for British luxury etailer Matchesfashion.com it’s not so impossible. During the Women’s Wear Daily Global Fashion Forum in Beijing, CEO Ulric Jerome stated that in the next 18 months one-hour delivery will be the norm in big cities. In addition, the company is also looking at 360-degree video ahead of a move into virtual reality. Surprisingly, Jerome dismissed the need to use drones to achieve the ambitious delivery target, saying airspace regulations could be a stumbling block. Instead, he’d rather focus on perfecting fast delivery. But what fueled this bold mover? Mobile sales are moving upwards with 48% of sales now coming from either a smartphone or tablet. As luxury shoppers are said to be “the most connected customer in the world,” and Jerome is working on another initiative to help Matchesfashion.com with customer engagement. He plans on doing so with stylized shoppable fashion videos. These videos will act as the stepping stones towards 360 degree videos, which will give customers the freedom to interact with the 420 brands the online retailer offers and later virtual reality. Matches sees the importance of joining fashion and technology. Thus, they plan on launching the 360 videos first, and follow up with virtual reality. In the below video, Jerome speaks about E-Commece and the future of retail in the luxury space.

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6 Responses to Fast Delivery…Even Faster

  1. mike serritella October 27, 2016 at 7:40 pm #

    The possibility of getting something you ordered in an hour seems to be something of science fiction. What Ulric is proposing sees like a fantastic idea because many shoppers want to receive the things they order that day. I know from experience from online shopping I wanted to get the thing I ordered that day but I know it just wasn’t possible. I really do like the idea that is being proposed here because it seems to be a flawless system that will deliver your order without a drone. I think it’s something that is really impressive because amazon is trying to deliver packages to its customers by drone and that is something could get out of control very fast. I do like how this system will actually utilize mail systems to get the package to you faster. The other thing I like is how they are diving into the virtual reality world. While it may seem silly to some it will actually be a good thing because consumers can actually see what the clothes they are looking at look like in person before touching them. I think that this company is taking a bold move in the right direction, a lot of companies today do not think outside the box like this and it could draw in so many new customers if they do. If amazon had features like this, then their business would be booming. Imagine that you could hit something on the amazon app that would bring you into a virtual reality interface that you could use to see what your item would look like up close and you can see the fabric and the finish. It’s something that honestly would be helpful to a lot of consumers because they don’t always know what they are getting when they purchase something. It happens way too much, someone will purchase something and they think it’s one thing but in reality it’s something completely different. One person bought an iPhone off eBay for $700 only to find that it was the box. There is way too many instances of this happening across the world and its something that really needs to be stopped. That’s why wit this method we can actually see what we are getting instead of just getting something false advertised. I really think that this company is taking a step in the right direction and other companies should soon follow, while it is something that is in the early stages within 18 months we can have this be every day thing. Amazon has just launched this thing where people can buy refills of certain items at the touch of a button. That is very impressive however I do think that the technology involved in it can be used more wisely and should actually be replaced with this new technology because I really do think that a lot of customers would like it better than the services that are provided now. I really think that this is something that amazon and other should consider doing because it will increase traffic flow into these websites.

  2. Edward Vestergaard November 11, 2016 at 9:03 am #

    When a consumer orders something online, “fast delivery” entails a delivery date within two or three days, which is reasonable considering items typically ship from around the country. Interestingly, a luxury clothing retailer in the UK claims to have one hour shipping which shatters one day shipping by a full twenty-three hours! Incredible! At first glance this seems like a marketing gimmick to attract attention, but on closer inspection, Matches Fashion’s claim seems pretty legit. Company CEO Ulric Jerome explains that he intends to “perfect fast delivery” and believes that “in the next eighteen months, one-hour delivery will be the norm in big cities” (Yashay). Considering Matches is based in London, I was quite skeptical that such a statement was feasible, but quickly learned that five Matches locations are strategically placed around the bustling city. Despite the heavy traffic that clog metropolis streets worldwide, Matches could still make good on its guarantee because of the ease in which it can traverse London- accommodating specific sectors with a certain location. The challenge however arises when an item is purchased online but the nearest store doesn’t have it in stock; the item is instead located on the opposite end of London. Since Matches is a boutique retailer, their merchandise may vary throughout the locations; while one store may specialize in women’s shoes and accessories, another may focus on coats and dresses. This means that a high-end client nearer the former location may not receive an item within an hour if purchased from the latter location. Of course I could be wrong, but I’d assume some obstacles challenge a delivery within the sixty minute limit. Furthermore, I can’t help but wonder what Matches’ policy is regarding a late delivery. In the past, pizza-delivery company, Dominoes said that if one’s order isn’t delivered within thirty minutes it’s free…but I don’t imagine the same could be said for a $2400 Alexander McQueen mini dress. Even a 10% discount knocks $240 off the purchase price, but who knows, that could be chump change for Matches. It’s also important to note Jerome’s dismissal of drones for delivery, stating “airspace regulations could be a stumbling block” (Yashay). While it’s true that special clearance is needed to operate a craft in city airspace, I think a more logical explanation for the dismissal is the likelihood for crime. I’m not sure at what altitude drones usually fly at, but reasonably I think it could be hit with a rock causing it to tumble downward with hundreds (if not thousands) of dollars’ worth of merchandise. Therefore, theft is surely a concern with drones as opportunists hope to make off with a lucrative haul. In conclusion, I don’t believe that one hour shipping will become a universal business tactic in the near future- it’s simply too difficult with larger companies with facilities across many regions. However for smaller chains (like Matches) who operate exclusively within one city, one hour shipping is entirely possible, and could serve as a prime asset that attracts a new client-base. Of course I would love to see Amazon make such a promise, but I guess the rabble aren’t worthy of elite customer service; instead, we have to wait a few days to receive our regularly priced stuff.

  3. Matthew Multer December 2, 2016 at 8:53 pm #

    It’s coming and its coming quick. Your package and how it is delivered is going to becoming even faster now. Usually when we think of fast delivery its 2-3 business days and you’re lucky if whoever you’re buying from isn’t charging you for it. Or fast delivery now could be considered overnight. In a day and age like 2016 for a company to have slow delivery it’s completely setting itself back from the competition. I cannot comprehend how a company can have awful shipping. That’s why Amazon is considered one of the best. If you order from Amazon you have it either the next day, or the day after. They’re great.
    In this article though I like to think of the British luxury etailer to be 10x better than Amazon. They’re talking about delivery within just hours. Hours of your purchase. That’s insane. CEO Ulric Jerome stated that in in the next 18 months one hour delivery will become the normal thing in big cities. Jerome said the one hour delivery wouldn’t even be drones. He made a really good point saying, “Airspace regulations could be a stumbling block. Instead, he’d rather focus on perfecting fast delivery.” By perfecting delivery his company can become probably the most efficient company in the world. They would have assets constantly going out.
    I think this is something that is so impressive. Being a consumer when I purchase something online I want it to come as fast as possible. Right now the standard for fast shipping is 2-3 days. But imagine a world where the consumer orders something and receives it in an hour. That would be unbelievable. Another interesting thing is how they are trying to perfect virtual reality. That would enhance the shopping experience in an immaculate way. The consumer would now be able to see what the clothes look like in real life from their own home as well as what the clothes look like when they physically put them on.
    This all seems like a good idea but I would imagine there would have to be some sort of obstacles. Jerome doesn’t seem to mention any. But I would have to imagine something would go wrong. Nothing can ever go according to plan. Also what would happen if a delivery is not delivered within an hour? Would the customer get some sort of credit? I want to know the policy of that. One place that is notorious for having fast delivery is Jimmy John’s. They claim, I believe to deliver in 20 minutes. They’re also open for delivery 24 hours at most places too.
    Fast delivery is every consumers dream. It also should be every company’s dream too. With fast delivery you can put yourself ahead of your competition and make customers happy and keep them coming back for more. Lastly I would like to point out that Jerome mentioned placing orders from apps on phones. Phones and mobile ordering are taking over. I believe this is what the future of online shopping is going to look like.

  4. Joe Murdaco December 7, 2016 at 3:14 pm #

    Having things get delivered quickly is vital for people around the holidays. Imagine forgetting that a family member’s birthday is quickly approaching the next day. You have no time to shop for a present before his party and you panic. The only thing you can do is order something online and pray it gets there within a week and you print out a picture of it and throw it in a card. It is embarrassing and you wish there was something you can do. Well, now there may be a better solution. We used to get a package in the mail and it would take about a week to get there. It was like snail mail. Innovation occurred and then we started getting our deliveries in about two to three business days. Now, with things like Amazon Prime, we can get our packages overnight. That is incredible that a package can be delivered anywhere in the country in less than a day. It is efficient and extremely convenient for consumers. Pretty soon, we are going to get our packages in an hour. Yes, you heard that correctly. It can take an hour for any packages to get delivered to consumers. This is incredible for the person that is panicking to get a birthday or Christmas present last minute.
    Mobile and online sales are increasing drastically and it is causing delivery companies to increase their speed and efficiency to maintain their reputation and keep their customers. People rarely go to stores to shop anymore during the holidays. They can save time, gas and energy by ordering items on their phone while lying on the couch. Although this discovery and implementation of fast delivery is great for consumers, we may lose jobs as a result. There are a lot of people that work in department stores as cashiers and stockers. These people are going to lose their jobs if delivery becomes virtually instant. No one will want to drive to a store if they can get the order almost immediately. Some people might like to try on the clothes in the store before purchasing the item but with quick delivery, they can return the item and order a new one and have it within an hour. It is astonishing.
    I am also worried about the costs of shipping. If the shipping happens in only an hour, the consumers might have to pay a lot more. For me, the rise in costs will be worth it. I would gladly pay an extra few dollars to have the item arrive that quickly. I am very impatient and I do not like waiting for a package to arrive. When they say two to three businesses days it usually takes three or four. I would be very happy to see the package in an hour. They said that they will not use drones to make this process happen which is surprising to me. Having human drivers make this transition might be hard. I think it will eventually turn out to be a job for drones.

  5. Joselito Abarca December 7, 2016 at 10:50 pm #

    Today in class, Professor Shannon gave a great presentation on how technology is shaping our world and how we must adapt to these changes in order to stay competitive. This blog post shows just how fast technology is advancing. The blog post “Fast Delivery…Even Faster” examines how in the next 18 months, one-hour delivery will be a normal thing in big cities according to company CEO Ulric Jerome. Jerome explains that he wants to “perfect fast delivery”. When we order something fast it usually takes 2-3 or even one day shipping if you decide to pay the price tag that comes with it. Innovation such as Amazon Prime has given consumers the ability to receive a good overnight. When I order things, I wished it would be able to come the same day instead of having to wait to use my good. But now, consumers no longer have to wait days to give a late gift because, the company Ulric has proposed an initiative to deliver packages in a hour. That is crazy! Life for consumers is becoming more and more convenient. Before reading the article, I thought the way to make this happen was by using drone. However, due to airspace regulations, they have decided to use drones but I feel that the method which Ulric has proposed will be just as great. I also find it intriguing how they are trying to perfect virtual reality which will help the country differentiate itself from its competitors. Consumers will be able to see the clothes they are looking to buy as if they were to walk in a store. This country is using technology to its full potential and is catching the eyes of many consumers. It sounds all great, however we must ask what their policies are. What if the item doesn’t get their on time? If the company advertises one hour deliver, consumers will be distraught if the company does not deliver as it’s promised. Anyways, I would not be surprised if other companies such as Amazon begin integrating virtual reality and introduces the one hour delivery. Imagine being able to look at an item before looking at it? As time progresses, consumers are beginning to shop less at the mobile and have to turn to shopping online. It is more convenient and you are able to buy everything as if you were on the store. Many people go to the mall for the experience. However, if these companies begin to use virtual reality for consumers to see the products, the number of people going to the mall will fall drastically since there is no incentive to go anywhere when you can do everything from the comfort of your home. I can honestly say, I am excited for what the future has to bring and I am looking forward to shopping with virtual reality. In a few years, we will no longer have to wait 2-3 days to receive our goods as it will get there in an hour.

  6. Robby Hazel December 9, 2016 at 1:50 am #

    In Allison Yashay’s blog post “Fast Delivery… Even Faster”, she offered a plethora of evidence that indicates the e-store market’s imminent shift away from traditional shipping methods, and a shift towards item delivery within hours of the online transaction’s completion in most major urban settings. More specifically, Yashay covered the online retailer Matches Fashion, a British based luxury goods company. Matches Fashion predicts that they will be able to offer delivery after only hours of an online purchase within the next year and a half. The company also plans on tailoring its services to customers who use mobile devices as the medium for placing their order, citing the drastic increase of orders placed on mobile devices reaching nearly fifty percent. I feel as though it would be wise for other online retailers, at the very least, to consider implementing portions of Matches Fashion’s innovative business model into their own in order to avoid becoming an irrelevant fossil of the industry.

    In the quickly evolving world of online sales, where transactions occur outside of an ordinary brick and mortar store, the factor of convenience is very prevalent. It should not be a secret to the managers of any online store that customers do not want to wait any longer than they have to wait when expecting their highly anticipated package in the mail. If given the option, consumers will most likely choose the online retailer that offers quicker shipping for the same, or similar, item at a comparable price. I know personally, I would certainly elect for quicker shipping along with a majority of my peers. Additionally, I would absolutely be open to paying a higher price, within reason of course, in order to get my item, or multiple items, in a timelier fashion than I am accustomed to. I assume that I am simply one of the billions of people who would be willing to take these more expensive measures, creating a nearly untapped market, as well as forming the potential for online retailers to realize higher sales revenues. However, many online retailers simply do not capitalize on the impatient nature of their consumers, for numerous reasons. Whether it is due to logistical problems that are caused by a lack of accessibility to alternative, and swifter, shipping methods, or due to the unfeasibility that almost always accompanies utilizing the quicker shipping techniques, only a few retailers, such as Amazon with their Amazon Prime service for example, have attempted to gain additional market share off the back of the aforementioned impatience of their customers.

    In the same way that Professor Shannon frequently expresses the importance of adaptability to his classes, businesses also need to accommodate for industry changes and shifts. We have been told countless times by Professor Shannon that the best way to remain a non-expendable and valuable employee is to be able to adapt quickly to changes in the work place. Otherwise, as he’s often implied, we will most likely find ourselves unemployed and struggling to make ends meet, or trapped in an unfulfilling and undesired career. This idea certainly hold true for businesses as well. That being said, online retail companies that successfully develop a more efficient business model, like Amazon and Matches Fashion for example, will likely find themselves claiming a significant portion of market share at the expense of the businesses who fall victim to their own traditional ways.

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