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I've been following these posts for some time now, and I have to admit that it seems the bearish perspective often lacks depth, particularly regarding Ocado's business model. From my viewpoint, Ocado is not merely a tech company; their solutions provide a significant competitive advantage for their customers.
Ocado's platform extends beyond simple technology. While the advantages have been mentioned in various posts, I would like to add that Ocado offers comprehensive market insights and consumers behavior analytics. This capability enables businesses to forecast sales more accurately, create precise budgets, and cultivate consumer habits effectively. Additionally, Ocado's system facilitates targeted product promotions to a vast audience without the need for costly traditional advertising methods like TV or social media campaigns. Their established consumer base is a testament to their ability to engage and retain consumers through these innovative strategies. Over the already discussed advantages, Ocado's automation technology significantly reduces operational costs and increases efficiency, allowing businesses to scale rapidly and sustainably. In one word, this Ocado solution is the vehicle that leads to retail transformation 360 degrees from a traditional retailer to the ones that the future will have. I believe that no huge supermarket will survive; consumers will stop wasting time on lines and shelves sooner or later, converting again to small market shops in city centers.
Choosing Ocado's CFCs is not just about adding another warehouse; it's a commitment to embracing the future of order delivery. It's akin to what Amazon did with e-commerce. If we look back 10-15 years, many analysts compared traditional industries with Amazon and grossly underestimated its potential. History proved them 3000% wrong. The same could be true for Ocado as it redefines how businesses manage and deliver orders.
While I agree with some of your post (the value of Ocado customer data is overlooked especially with the upcoming phasing out of data from cookies) it is not clear to me why the Ocado Smart Platform features for marketing and promotions is still not available within the Ocado Retail set up. Something MKS were complaining about the other day.
It seems like it is available to Kroger.
Could be to do with the complexity of migrating the oldest Ocado customer system onto the new one. Always a tricky proposition
Theorn
Your post regarding " comprehensive market insights and consumers behaviour analytics." is a good point ...but...it is something the other big supermarkets are already looking at and are fully aware of ..
Sainsbury just signed a deal with Microsoft for example
https://www.producebusinessuk.com/sainsburys-agrees-to-5-year-deal-with-microsoft-to-put-ai-at-centre-of-store-operations/
Tesco has been using and developing AI use for years .. this from 2017
https://www.information-age.com/tesco-using-ai-gain-customer-insight-5845/
))) Oh Lord help !
Still massive dumping by our shorty friends, desperate!
" it is not clear to me why the Ocado Smart Platform features for marketing and promotions is still not available within the Ocado Retail set up. Something MKS were complaining about the other day. "
who knows...maybe it is part of the cat and mouse game around the payments.... MKS makes some payment,Ocado spends it on making the OSP available throughout the Retail system
who knows !!
In the realm of AI retail solutions, many options stem from distinct databases and statistical models. However, what sets Ocado apart is its ability to consolidate everything into a single, unified platform. This is where their true strength lies.
Ocado doesn't just gather data; they seamlessly integrate various sources, including customer interests in products, direct messaging for targeted offerings, and crucial ERP information like purchase history and preferred delivery locations. This holistic approach allows for a comprehensive understanding of each customer.
The real magic happens when this data is put to use. With Ocado's platform, businesses can create precise KPIs to monitor rates of consumption. If these rates decline, instant offerings can be tailored to prevent customer attrition. These insights aren't based on assumptions; they're derived from actual, per-customer data.
This level of insight transforms Ocado's platform into a perfect tool for upselling and generating recurring revenue. It's a game-changer in the world of AI solutions, providing an unparalleled advantage over competitors.
In essence, choosing Ocado means embracing a future where data isn't just collected but utilized to its fullest potential. It's a step toward a more personalized, efficient retail experience—one where customer needs are anticipated and met seamlessly.vantage compared to what ever other AI solution.
So you think chasing Getir's client list is likely to pay off? Be interesting to know how much they paid for that data
They are primarily going after Getirs clients in London for the Zoom service.
They wouldn't have paid much.
While I am not as strongly convinced as you are Theorn about Ocado's strength and defensive moat in this area (I would need to see a bit more independent evidence rather than company claims) it is true that they are working very closely with Kroger on their online strategy using such analytics.
" while Gorillas former customers were promised “30% off your first shop and three months of free deliveries” with Zoom."
by that discount you might assume Gorilla customers spend more, and more regularly ?
If you want to get customers you need to give incentives.
Banks are paying me up to £200 to switch my current account. Which I do every 6 months or so.
Others won't bother to keep switching and will stay.
what i am saying theorn is there are a lot of tech companies that offer services to businesses to p**** their data and use it more effectively. you can build an effective preference system pretty quickly for example, so what is ocado doing with ai that sets them apart?
P a rse! A new one. Cool.
Theorn sounds like a sales manager for Ocado Solutions
Always nice to hear from insider within company
Thank you
Yes, Ocado management defending the company in glowing terms on a share chat board. Must be very rattled by the share price decline...
Haha, I may just be an investor in this company, but my involvement goes deeper than that. I've kept a close eye on Ocado's journey. Thanks to insights from someone that worked there as a Head of project for their first reimagine CFC, he quitted to join... make a guess which company lures Ocados managers??
This way I've gained valuable understanding of their strategies and business.
Sure, they might be a couple of years behind their initial plans, but that doesn't faze me. When I invested in Ocado, I did so with a long-term mindset. Selling before the five-year mark? It'd feel like cutting off my own hand.
Sure, they might be a couple of years behind their initial plans, but that doesn't faze me. When I invested in Ocado, I did so with a long-term mindset. Selling before the five-year mark? It'd feel like cutting off my own hand. It's clear that my perspective on Ocado is not just optimistic but also deeply committed to the long game.
Well your comments have prompted me to take a closer look at Ocado's data analysis capabilities.
Not an area I have viewed as a standout feature of their proposition. Although I see the actual data itself as pretty valuable.
"In one word, this Ocado solution is the vehicle that leads to retail transformation 360 degrees from a traditional retailer to the ones that the future will have."
Note to self: Notify the Oxford English Dictionary of a new definition of a word.