The Future of Retail Is Curationhttp://www.fool.com/investing/general/2013/05/23/the-future-of-retail-is-curation.aspx Andrew Marder
May 23, 2013
There was a time when you bought books, and only books, on Amazon.com (NASDAQ: AMZN) -- those days are long gone. Today, the company sells everything from diapers to car engines. That business model has become the online norm, and was described in detail in The Long Tail by Chris Anderson. The book's subtitle -- Why the Future of Business Is Selling Less of More -- gives away the main point. Anderson argued that what makes companies like Amazon so successful is that you can get weird little items from them that no one else sells.
That model has done so well that now it's starting to backfire. In recent months, Amazon's star rating system has started to come under fire, with observers arguing that the company and partisan customers are massaging ratings to get the kind of sales that they want . Regardless of whether that claim is true, it points to what customers are now looking for in their shopping experience -- curation.
What is curation?
Curated content is simply a subset of content from the huge mass that is selected for its quality -- where the term "quality" is very broad. Netflix (NASDAQ: NFLX) is now actively moving toward curation, and has made a statement summarizing its position that does a good job of summarizing the whole point of curation.
"As we've gained experience, we've realized that the 20th documentary about the financial crisis will mostly just take away viewing from the other 19 such docs, and instead of trying to have everything, we should strive to have the best in each category. As such, we are actively curating our service rather than carrying as many titles as we can."
In short, curation looks to provide customers with the best possible products instead of the most products possible.
Who is curating already?
Amazon has dabbled in curation through its lists system, which allows other users to make curated lists, and through its "customers who viewed this item also viewed..." capability. It's similar to Netflix's suggestion system, which is an attempt to pare down the seemingly unlimited selection into a smaller, more focused group for a specific customer.
One of the best companies for curation is Williams-Sonoma (NYSE: WSM). The whole premise of the company was that founder Chuck Williams wanted to provide specialized tools to American chefs. In classic curatorial style, he wasn't trying to carry everything you would ever need in order to cook, just the items that he thought were the best.
This is going to be big