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July 23, 2013

Asia is the next frontier for e-commerce. The continent’s growth in online retail has soared by nearly 140 percent in the last three years. By 2020 analysts predict that Asia will account for 23 percent of the online sales market, according to the J. Safra Sarasin Group. That would be a tremendous jump from the 3.8 percent of worldwide online sales attributed to Asia just last year. Global e-commerce sales are expected to hit $1 trillion this year.

Much of the growth is expected to come from China, which by the end of the decade, is expected to edge past the United States as the world’s largest online retail market.  For the last several years e-commerce in China has grown by more than 60 percent annually. Retailers world wide are positioning themselves to enter the lucrative Chinese market. The NFL announced last week that it would be opening up an online store for the Chinese market. The store, which will be opened with ExportNow, will sell apparel, equipment and accessories branded with the logos of the NFL and its 32 teams over an e-commerce platform on China’s Tmall.com and is expected to open in September.

What’s truly extraordinary is that the growth of Chinese e-commerce is taking place with Internet penetration of just 42 percent. Driving the Chinese is increasing Internet penetration combined with the rapid growth of the Chinese middle class.

 

 

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July 19, 2013

Recession CashThe effects of the Great Recession may finally be coming to an end. That’s if consumer sentiment aligns with the 2013 Retail Outlook Survey by KPMG. Eighty-five percent of the 101 senior retail execs responding to the survey expect capital expenditures to increase or remain the same over the next year.

The results of the survey indicate that execs expect increase spending on geographic expansion (61%), information technology (40 %) and advertising and marketing/branding (24%). Technology will drive a great deal of the increased growth expected post Recession. Seventy-one percent of the executives are using social media to explore new ways of doing business and to reach their customers. That’s up from 58 percent a year ago.

Mobile is also becoming a huge factor. Fifty-two percent of the respondents are making use of mobile and online shopping techniques. Fifty one percent are using mobile and online promotions and coupons. They also expect analytics to play a major role going forward. Seventy-two percent believe that data and analytics offer insights that help them to make strategic decisions.

The results represent good news for retailers. The positive response comes despite a pervasive sense that consumer sentiment remains volatile and unemployment remains high.

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July 16, 2013

Globalization is a challenge for logistics providers. The growth of the global economy has meant that consumers now expect to access goods and services from around the world, often at a moment’s notice.

The challenge for a 3PL company is to provide outstanding, easy-to-understand service in an increasingly commoditized world. According to a 2013 PWC Global Supply Study of 500 supply chain executives around the globe, the most pressing challenges include profitability, cost management, meeting customer requirements and supply chain flexibility. Continue reading The Logistics of Globalization

May 16, 2012

We live in an era of Big Data. For any of you who are like us, data obsessed, below is a snapshot of the analysis Jeff Kaiden our CEO performed to conclude we save around 35,000 gallons of gas a year at our New Jersey campus through carpooling, public transportation, biking and walking. We’re carpooling from New Brunswick, around where many of employees live, to our corporate campus in North Brunswick. It’s only six miles each way, but it really does add up.

Take a look and enjoy! If you’d like the original in Excel, just send an email to information@capacityllc.com, and thanks for the support.

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March 13, 2011

BUSINESS INFLUX STRENGTHENS ECONOMY IN NORTH BRUNSWICK
With the relocation of Church & Dwight Co. out of state, and the closing of Pathmark and A.J. Wright due to corporate reasons, there are quite a few vacant buildings and “for lease” signs throughout town. However, Michael Hritz, director of the North Brunswick Department of Community Development, said that in many cases, those landlords are still collecting rent from the previous owner, which he said maintains tax ratables until a new tenant can be secured.

“We are certainly not immune to today’s economic challenges and can’t control the commercial real estate environment. Everyone is disappointed when a store like Pathmark closes, but you understand itís part of a larger issue and not unique to its North Brunswick location. But we are competing and fairing very well with our neighbors. All of this recent activity demonstrates that North Brunswick remains a great and successful place to do business,” he said.

Mayor Francis “Mac” Womack believes that North Brunswick is a viable territory for businesses because of its geographic location. “I think we’ve got to try and find industries that will fit in town in a way that they fit with our expanding residential population,” Womack said. “We have to ask ourselves how development, or redevelopment, in a way, encourages the right kind of new business to move here and complements the surrounding residential neighborhoods rather than place a burden.”

And then there are businesses that have established themselves, like Capacity LLC, and continue to expand and thrive in town. Located off Jersey Avenue on Corporate Road, Capacity LLC has just expanded to three warehouse facilities, including one of the vacant Church & Dwight buildings. The warehousing and third-party order fulfillment company has been in town for over 10 years, expanding to its second building in November 2009 and its third building two months ago, totaling over 400,000 square feet.

Thomas E. Campbell, Chief Strategy Officer for Capacity, said that 200 employees are located in North Brunswick, most of whom live between Toms River and Elizabeth. “We felt this area had a combination of good personnel, good value per square foot, and a good relationship with vendors and the township,” he said.

Campbell said there has been growth from existing clients and the addition of new business, handling over 100 companies in every area including toys, beauty products, apparel, water bottles, yoga accessories and solar panels. “All you have to do is drive down Route 1. Something happens, like Pathmark closes, and the ripple effect is very chilling. We couldn’t stay here if it wasn’t a good business decision, but a lot of my clients choose to do business here because of the proximity to New York,” Campbell said.