Horizons newsletter – Week 14 // 2018
Horizons is a bi-monthly Dasym Research initiative to show you how the Dasym themes have been in the news. We publish the Horizons on our website and as an email newsletter. If you wish to receive the email, please contact Investor Relations.
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Food and beverage shopping’s hybrid future
Although ecommerce is penetrating many businesses, food and beverage shopping has so far been immune to it. While groceries is among the largest categories of consumer spending, online shopping just 1.5% of the U.S. market. However, the transition to online might come sooner than expected, as the majority of U.S. grocery shoppers will purchase at least some of their groceries online within five to seven years. Big grocers are already positioning themselves for the battle for online shoppers: Walmart is vastly expanding home delivery, Target bought delivery startup Ships to offer same-day delivery, Koger will team up with Instacart, and Amazon acquired Whole Foods. Nevertheless, the majority of shopping will remain offline, so moving into delivery won’t be enough. It seems like shopping will in the future be done over a range of different channels – over the internet, at quick-stop markets and through click-and-collect boxes. Grocers need to apply new approaches that play into a hybrid future, by offering online and physical shopping in tandem, catering customers will move from one-to-many, to many-to-one.
Xi’s Art of Trade War Diplomacy
Amid Trump’s trade threats, the biggest headline of the recent Chinese Nation People’s Congress was that Xi Jinping was reappointed as President and is allowed to stay on after this second term. Besides Xi’s consolidation of power, there were other important personnel reshuffles in several Chinese key positions: Wang Qishan was elected Vice President, Yi Gang was appointed Governor of the People’s Bank of China, and Liu He became Vice-Premier and Xi’s top economic advisor. What unites these politicians, besides their loyalty to the President, is that they have lived and enjoyed a university education in the United States – just like Xi himself – and have profound knowledge of America’s history. Their American colleagues with whom these Chinese officials should resolve their trade disputes – like Lighthizer, Navarro, Mnuchin, and Trump – are considered to have far less knowledge about Chinese language, culture and diplomatic tactics and traditions. With the possibility of an economic trade war, Xi adheres to ancient Chinese wisdom as expressed in General Sun Tzu’s “Art of War”: If you know the enemy and know yourself, you need not fear the result of a hundred battles.
Futuristic sports venues
Esports are hot! While traditional sports are in decline, the engagement with virtual sports proves young audiences still enjoy sports. Big sport franchises, such as the NHL and NBA, are taking notice and are introducing Esports leagues. Sports clubs, meanwhile, are setting up and/or investing in Esports teams. Moreover, traditional and digital media companies alike are vying for the opportunity to distribute Esports on their platforms. Intriguingly, despite Esports being a cognitive sport taking place in a virtual world, people still come together in physical venues to enjoy the important digital matches together. Traditional venues such as MSG and the Wembley SSE Arena profit from this development, but cinemas also jump on the opportunity, with some frontrunners even using immersive 4D motion technology. Taking the experience even a step further, purpose-built Esports stadiums are emerging in Las Vegas, Texas, and China. These Esports stadiums, but also traditional venues can benefit from the impulse Esports provides; they can distinguish themselves from the video streaming experience by creating massive entertainment hotspots similar to festivals.
