EP125 - Johnson & Johnson E-Com VP Sri Rajagopalan and Samir Bhavnani of 1010data
We caught up with Samir Bhavnani of 1010data (previous appeared on Amazon Private Label Deep Dive Episode 103) at ShopTalk this year and he brought Sri Rajagopalan, VP of E-Commerce at Johnson & Johnson with him. We cover a variety of topics including brands going direct to consumer, brands working with Marketplaces, Amazon's entry into Healthcare, and Amazon Private Label OTC.
Episode 125 of the Jason & Scot show was recorded on Tuesday, March 20, 2018.
Join your hosts Jason "Retailgeek" Goldberg, SVP Commerce & Content at SapientRazorfish, and Scot Wingo, Founder and Executive Chairman of Channel Advisor as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing.
New beta feature, Google Transcription:
Jason: [0:25] Welcome to the Jason and Scott show this episode is being recorded on Tuesday March 20th 2018 I'm your host Jason retailgeek Goldberg and as usual I'm here with your co-host Scot Wingo.
Scot: [0:37] We are live live live and beautiful Las Vegas here for the shop talk show. We're really excited to have to guest on the show too rare time we actually were able to Loop into people crazy enough to be on the show.
Jason: [0:52] Our listeners are getting twice their money.
Scot: [0:53] Yeah they are for you but double the bang-for-the-buck excited to have on the show Samir bhavnani and SRI Raja Goblin. Samir is area vice-president of Tintin wife asking what area he covers and. 1010 data and this is his second time on the show that he was super helpful in episode 103 where we did the Deep dive on Amazon private label and he was kind enough to share some really interesting day that they have on that. So looking forward to getting an update on that in any other interesting data topics he brings back welcome back sooner. You're the rear Elite status of a two-timer club so there is not a three times will what will see how it goes today.
Jason: [1:34] Petition to be the first three.
Scot: [1:37] And severe was kind enough to bring along some when he found downstairs heat, SRI who is the VP of e-commerce at this small kind of entrepreneurial brand shop called Johnson & Johnson Street has had a story career at Brand call J&J but Frito-Lay PepsiCo, it's great to have you on the show SRI.
Sri: [1:57] Thank you so much that's me man that's my middle name all Style no substance but thank you for knowing that you're doing your homework in it.
Jason: [2:04] It's a little known fact that 100% of Scots calories come from those three branches.
Sri: [2:10] If previous life out of said thank you for putting my paychecks in the mail so.
Samir: [2:17] Drove to have you on the show one of the ways we always start the show is.
Jason: [2:18] On the show one of the ways we always start the show is to tell the listeners a little bit about how you started your career and kind of walk us through your matriculation to your.
Sri: [2:30] And some believe it or not I'm living proof that anybody can work in digital in e-commerce and let me tell you why fairly straightforward so I came to this country 25 years ago to go to school at Virginia Tech. Dishwashing was my first job even even drove a truck for a living thank you very much hopefully this year will go to the SEC Championship. I'm talking football not basketball to be clear so once I graduated got recruited by a market research from Ira Nielsen competitor. Maybe someday 10 times competitor and then eventually.
Jason: [3:03] Daddy are they just don't know it yet.
Sri: [3:05] They just don't know it yet that's how the digital industry works most people don't know and so wild spending time at. One of the leaders at Pepsi came to me a VP of sales and said dude why are you working till I die you should be working for Pepsi and I said why not give it a shot so I spend many years at PepsiCo a decade and change. In all different functions divisions of Ben in it and sales sales leadership sales account leadership. Last job before getting into digital retail was actually a dollar drug convenience business. Owning the John business plan with the customers everything from the little guys like QuikTrip the gas station. Do Dollar General then one day while having one some displays at one of my customers when I was returning as a career leadership opportunity. I was offered why don't you start up Ecommerce for Frito-Lay and I thought it was a demotion what the heck is going on and that's 6 years ago. And 6 years later I haven't look back and I will probably say publicly never return to a full-time brick-and-mortar retail job ever no chance no one's going to get me there. So in the six years I've had the 49ers starting up he come for free oh what is things I realize is when you see you ask you. I was registering having doing the truck once about that when you see you ask you figure out a way we had 30 days we had to figure out a strategy lo and behold we started scripting it driving it. And I got to do that for you I get to do it all over again it down sitting down too and it's been 3 quick years I got 11 days left to complete three years magical three years that's my private life of an entrepreneur got a record label it solve all your records.
[4:42] I'm also in real estate development in Texas and also another business that's my middle name.
[4:50] Hang out with you guys a lot more.
Scot: [4:54] I'm a big fan of Indra nooyi.
Sri: [4:58] Many times here's a funny story for the listeners her daughter that actually learn dance from my wife a couple times.
Scot: [5:08] Yeah. One of my favorite podcast other than Jason Scott shows Freakonomics they just did a whole series of out and what does CEO and they're really highlighted her and she was just very well spoken about you know how how she thinks about being a CEO and ended up being a woman CEO and all that stuff is very she's very awesome. Leader.
Sri: [5:25] So let me give you a another story out there and enjoy please don't kill me or listeners don't kill me for giving this up humility. Indoor practice in humidity right so I think before I got promoted from a director to a senior director we had a rule back then she was a CFO CEO and we had to interview with her, so I know you would tell her she don't ask me about my background and I casually mentioned that that. My wife was running a classical Indian dance school so I mentioned, she starts asking me questions of course I had no clue and I don't knows the truth I have no clue but I made something up she said give me your wife's phone number like that here to here it is. Two weeks later my wife calls me and says hey do you know who was at our house today I'm like who. Should lay in there and we was at the house and I'm like why and she said hey she was sitting here sitting on the floor with a daughter watching her daughter actually dance because she wanted her to learn classical. In and that was in the afternoon on a weekday and I'm like Mom humility business leader. Mobile one of the most powerful 1400 leaders in the one of the most powerful women leaders in the world that's what life's about.
Scot: [6:29] Your your record label I assume does it have some to do with Indian music seems like that's.
Sri: [6:37] Although maybe I shouldn't say that because my we start a record label solve all your records because my daughter was an American Idol finalist years ago the name is Rhea Raj and she works or with DJs all over the world collab Integra going to Belgium. Next Wednesday to do a music video so she's got her own channel YouTube falling things of that nature so it's and she sings Poppin EDM. So she actually doesn't know the Indian language came a lot but although now with her Regional field Indian DJs of started to reach out. And I have a project on my hand a text message from my wife this morning then ask me for 4 lines in Hindi.
Scot: [7:17] Nice.
Sri: [7:18] Indian DJ.
Scot: [7:19] Deathrhyme.
Sri: [7:20] I hope I can figure that out although I did tell you all Style no substance rhyme is about style I can make this work.
Scot: [7:23] All Style no substance.
Sri: [7:28] Hey guys if I didn't think so mean for having me on the show it wouldn't be right so thank you for connecting me with Jason Scott.
Samir: [7:34] Got her all doing this.
Scot: [7:35] Yeah you could that take over my job the showrunner here so so I can so tough one.
Samir: [7:39] The bar is very very well.
Scot: [7:41] Show me a better job already cool so let's talk a little bit about J&J so you've been 3 years on the job when they started did they already have an e-commerce initiative or are you kind of got it from Ground Zero.
Sri: [7:55] So when I when they started looking for somebody to come and start this up change it stop ship that Amazon that was the only real business if it a lot of issues with quality things of that nature is the mutual decision to not have the relationship so we were. Really experimenting in DTC. Truly practicing on TVC Omni was too tiny to kinda really count so the goal was to start up all pieces of you come so that's Omni that's the walmart.com. Target.com truly put and then obviously Amazon. That and B2B b2c with lady. She out now pretty well you should check out neutrogena.com and rogaine.com through Commerce and action not just the website. We've managed to upgrade those platforms to demandware for the plug-in they don't pay me to endorse him but it actually works and it's pretty cool.
Scot: [8:46] That sells horse e-commerce Club.
Sri: [8:48] Thank you for being technically at.
Samir: [8:51] You don't know how I rock.
Jason: [8:52] It is that you now have the entire body of knowledge that Scott has of e-commerce platform.
Sri: [8:59] All substance lifestyle. So be ready to start it up while it's going to offend people if I take from scratch but the reality is that we had to do wait to put together a team really get going in all directions. We're fortunate business is gone consumers have responded retailers of partnered we found amazing vendors to partner of it and let me just put out an honest truth out there in the journey and e-com. You can't do it yourself you're going to have to partner with vendors and in this case unlike popular belief and Roi and all that stuff more is better. I'm literally here for 24 hours I flew in last night I flattened that I all I'm doing other than that shows me to vendor.
Scot: [9:39] Go to Silver folks that aren't familiar with J&J and even I have limited knowledge I know health and beauty is a big category for you guys and then. You guys and I think there's a huge drug division but that's more like a prescription there some over-the-counter what other are you guys in the pet category what other and snacks I don't know what all categories are in the.
Sri: [10:01] When you think of Jace J&J list three parts today and one is Pharma so that's your classic prescription medication you go to a CVS or Walgreens or Rite Aid any retailer deals in prescriptions in You by JJ products. Then you have the medical devices section so everything from. Instead of putting the heart to Diabetic Care which of course we announced for sale recently it's publicly announced and then there's the consumer sector I'm in the consumer sector. If you depend if you start dissecting the consumer sector think of it as three different pieces. Does the beauty care piece popular bands are clean and clear of course the big Neutrogena Aveeno is another one getting a lot of popularity especially good baby I'm second pieces to self care. Area which is I'm sure you've heard of allergy relief which is Zyrtec.
Scot: [10:50] Big fan.
Sri: [10:51] Pain medication Tylenol Band-Aid for wound care. Listerine for oral care and of course the legendary famous every mom wants to have it in her kind of in her bathroom for her child daughter or son whatever it might be Johnson's Baby. What forms the portfolio of Johnson & Johnson.
Scot: [11:10] No More Tears.
Sri: [11:11] No More Tears hey good morning.
Samir: [11:13] And pictures bottle.
Scot: [11:16] It's a strong band when they just like pops right in your head like that.
Sri: [11:18] If you come by and visit us sometime I'll walk you through the baby Hall of Fame but does the advertising which started 9 I think somewhere Midway through this last century No More Tears and we got a whole Hall of Fame picture story on it.
Scot: [11:30] The interrupted you Siri going to the 3 I got so excited about the baby stuff.
Sri: [11:36] Mega brands of course there are many other brands outside of the mega band as well. So the change that's really happened is all of these man's scale in store due to the consumer shipping habits. Many of them almost all of them about online now they're not just bought an Amazon although Amazon is a big piece of it consumers want a choice Mom want to charge battery shop. And I truly living in the where to buy in ready shop which is not just one retailer one place but we can order as well as Omni as well as Amazon well as deals.
Jason: [12:11] Obviously all those brands are sold Wholesale in store and online a few of those Brands you're now selling d2c online.
Sri: [12:23] Neutrogena. Of course under Neutrogena that many subcategories there's acne cleansers there's acne care that facial moisturizer therapy that body lotions and and body care. I'm so when you think of the brand it's all label Neutrogena but it's many multiple subcategories and then there's the I would say hair restoration Rogaine. We're doing do you see on that one as well but don't think.
Jason: [12:48] Why is everyone looking at me when they say Rogaine.
Scot: [12:50] Women women need their sponsorship on the show.
Sri: [12:53] Let me tell you guys something Rogaine actually works when people ask me that but the key to using and winning with Rogaine is using it before someone goes completely bald because the formula needs something to work on not just dead skin.
Jason: [13:06] Now they're even looking to Me Harder. The end of things interesting to me about your role as a lot of cpgs when they have e-commerce.
[13:16] I'm always curious what they mean because sometimes what they mean is help our wholesale brand sell stuff on their e-commerce Ides better sometimes they mean like launch are direct-to-consumer in your exclusively want responsible for the direct to consumer. My perception is that you have sort of both sides of that is at.
Sri: [13:34] To touch everything and I think it's by Design so when we started this up three years we made a conscious Choice we'll touch everything because we had to influence and build an ecosystem. Ecosystem is not just the numbers and sales right it's the content piece of it so yes I do part of it it's the sem part of it you go back to yours and Israelis were not common household words. Now they are so different place and Diamond I'm sitting with experts over here Tree Experts so all of this makes sense I still sit inside in an hour. External parties Etc with these words don't make sense right Soviet attacks the entire ecosystem of my belief is over the course of time though the only way any cpg company will be truly successful. Content needs to be on that the Innovation cycle so when a product is born. A brand needs your own content from scratch so they get just like this focus on mailing packaging and store digital is just a piece of it the digital content and that way I see it was used in packaging how about that.
Jason: [14:33] I mean arguably like packaging was in original form of SEO. One more level sending question about J&J misses super. The sum of your Brand's you guys wholesale through Amazon is that correct so you have you sell some some Brands 1p and are you doing any 3-piece sales on Amazon.
Sri: [14:53] Yeah what a partner with the pharmapacks I think it's a known fact. We're not the only ones pharmapacks is a scale TP on Amazon I think even Amazon if you heard egg Broussard today. I'm actually suggesting that manufacturers should be on FBI platforms things of that nature my belief is an e-commerce strategies a little bit of everything just as Amazon is a piece of the strategy. Amazon call to the one. Nation trip we're very similar to brick-and-mortar retailers funny as it may be for you guys to believe. It's the relationship management is not very different right buying products in bulk. Putting truckloads of products in Amazon warehouses and then working with Amazon in the right promotional levers for the consumer right 3p I'm also looking into being an API Subs if it's appropriate because. Sometimes a given skew or a brand or a product. May not be a fit for the 1p business we might choose to launch in the different way different fashion things of that nature same thing. But my Amazon sometimes that may be the best platform then they're developing the criteria now but I believe. To win the space and be a leader in the space you got to touch everything it can't be a one-and-done story.
Jason: [16:02] For sure we talked a lot about that on the show that you need a portfolio that there's not a.
[16:08] That's all any of these problems and I increasingly worsening brand sort of had that hybrid relationship with with Amazon in particular where there's a 1p and 3p component.
Samir: [16:19] It's also important right to not have all your eggs in the Amazon basket and having some kind of X Amazon outside of Amazon strategy something and I'm starting to see a lot more. Perfect segue so that we can have a good foundation on understanding of where J&J is on their digital.
Jason: [16:37] Journey.
Samir: [16:39] I want to go back to Samir who introduced 1010data last time you're on the show but just as a super quick Refresher. Ginormous panel of consumers you get to see all of their digital spending behavior and so you have this super rich source of data that you charge way too much money to J&J and us. You nailed it, so we just stopped we just looked at last year's gross of 2017 numbers compared to 2016 and we came and Tim and I came on. Last year we talked about Amazon private label was happening there that's certainly been one of the hottest topics I would save the last couple years. And what the data shows is that. Private label over alright friends like Kirkland and Amazon elements and we're up over 100% over the over the prior-year. Which is an astounding amount right and that has a very big impact on not only disruptive Brands but also on establish Perez.
Scot: [17:48] Yeah there's a backdrop where retail is growing three to 4% e-commerce 15 to 20 and then you have Amazon 30 so something going hundred percent is really you know if your 3 accessing Amazon that that's pretty darn.
Samir: [18:01] It's it's incredible we haven't seen growth so down to do to see you know just massive growth in the online Channel I think I sent you we were talking earlier and. We break things out into categories and subcategories right you can get as fine as you know like. Dry dog food versus wet dog food rats type of Branding Iron you can also me start looking at but if you look at Petcare was up 57% Billion Dollar industry industry and it's just continuing.
Scot: [18:30] Just private label Are All That Girl.
Samir: [18:31] All pet care all pet care I didn't I didn't break out or something.
Sri: [18:39] How about this the guy knows his number is.
Samir: [18:40] And then the other 50% categories food and beverage writes online grocery is is something that. 1010 is a reputation for short of being the innovators and tracking online grocery and then your category baby 48% growth last year so that's that's very impressive. And then running out personal cares 42% General Health is 26% in the Cosmetics was actually pretty slow at 15%.
Scot: [19:09] Awesome and then so this is kind of interesting so private label growing a hundred percent you're obviously you know in the world of Brands how how do you guys think about this private label thing does not worry you or your kind of like this is a little worrisome what what should we do about it.
Sri: [19:24] The honest answer to that is personally I don't worry at all then they'll give you I think that's two pieces of the story. Please number one is straightforward private label is existed for a few decades nothing you and you look at private labels role in the category it's very clear to me why retailers have. Private label and scale to a certain extent right I think the industry is panicking a lot kind of looking at Amazon private label and saying oh my gosh. It is going to do something to my brand equity in my question to Brand marketers is very straightforward one. You build equity over 20-30 years and if you're going to lose confidence over one announcement then are you sure you're doing the right things to build equity in the first place. I have the Supreme confidence that even Amazon private label is a brand at the end of the day they're going to depend on a brand new salad that's one piece of the story, I think bands with all these have equity in Amazon private label the wall Toby equity-based II pieces. Manufacturers are such over the course of the time haven't really spent a lot of time in a looking at should they be partnering with Radeon actually developing private label I don't mean just. A manufacturing a product in a factory and putting it on truck but only marketing elements off it actually cleaning that kitty for the brand. The Experience manufacturers having brand Equity wouldn't retailers want to partner with manufacturers in the marketing arm of it as well so I see it as. Play this is awesome why Panic it's an opportunity for every manufacturer to leverage the good ones on figure it out.
Samir: [20:53] I do I think it's interesting like I totally agree like.
Jason: [20:57] Gables been around a long time and I'm not sure that it's dramatically more threatening now than it ever was.
[21:04] Threatening is the second thing you mentioned is that retailers are now shipping a focus from Pride.
Samir: [21:07] Retail Focus from private label owned brands in.
Jason: [21:11] Brands in me that's a more direct competitor with you in that wide example I was like to use cuz its most extreme is Alexa is not a private label Sony Bluetooth speaker it's the mar.
Samir: [21:19] Alexa is not a private label Sony Bluetooth speaker it's the market-leading best product in the category that's wrinkly.
Jason: [21:25] In the category that frankly kicks on.
Samir: [21:28] If that becomes the truancy Walmart watching grown.
Jason: [21:31] Quincy Walmart launching their own mattress brand in like they're investing in March.
Samir: [21:35] Marketing and landing pages and you know their own unique attributes.
Jason: [21:41] Trend continues.
Samir: [21:43] And Amazon says what are the gaps in baby care and where should we eat you know build our own brand that potentially is a new threat that.
Jason: [21:46] Where should we eat unit build our own brand that potentially is a new threat that puts the the traditional National brands in the retailers that at all more at odds in that used to be.
Sri: [21:58] It's actually an opportunity to fly. I'm at before we started the show we were discussing advertising over here right and how did you know this completely changed advertising and morphed retail over the course of time and the survivors and the ones are actually flashing of the Wonder don't confirm. In a basically marked and mended ways and said here's how I'm going to play it out I don't see this as any different if we walked in and said there's only one way to build brand equity. Good luck if we want to confirm good luck they'll be rules to confirm they'll be places to confirm. But they'll be places to seek the opportunity goat cheese blade Out Create unique new Partnerships do things if I ask you guys you go back 10 years in history. Weed for one to be sitting here at a suite in Las Vegas watching the mountains and actually recording a podcast about private label you guys would have left but here we are we're doing. Because you decided tomorrow and do it I see it as an exact same YouTube it's a huge opportunity the ones who are going to exploited or going to fly.
Scot: [23:00] Little bit so we talk a little bit about Amazon but it wouldn't be a Jason Scott show if we didn't go into a little bit more one thing that happened about 3 months ago is it was revealed that Amazon has filed to be a drugstore essentially in like 20 to 30 States, you know these days we'll never ever something Amazon happens like CVS and Walgreens Rite Aid in all the stocks crater 20% you know you guys are a really large Drug Company, what would you think about Amazon becoming effectively of Next Generation online drugstore.
Sri: [23:29] So if you thought about the actual. Industry of healthcare Healthcare is a lot more than just the medication element of it that Healthcare Providers involved because they made CP is that hospitals involved. The ecosystem of healthcare is very complex highly regulated in this country. It's not something that'll Morphin 3 days but neither CPT more than 3 days so I actually welcome. New players coming in trying to change Healthcare you got to take the winner is at the end of the day I'd all of us are doing things in our lives today to deliver a win for the ultimate person that you're all touch with the car.
Jason: [24:07] I thought you were talking about my wife. You okay.
Sri: [24:12] At home that's what you deliver.
Samir: [24:14] My main focus.
Sri: [24:17] Now I have an excuse to get to be there to listen to the show. Remember she's in record label entertainment Property Management so I got to get around that you can respect but now you give me a tease and thank you sir far to client so. Have back on Healthcare right back on Healthcare so I welcome the digitization of healthcare. Honest truth be told letting very few people realize that there's a lot of Health Care advertising already taking place to delete a lot of programmatic already taken place. Digitally as long as the ecosystem is delivering a win for the consumer I think I'll roll. All of our roles is to find a way to participate make it better for the consumer so I welcome all those opportunities.
Samir: [24:59] I totally agree asked me like one of the funnest part of the whole.
Jason: [25:00] I totally agree I talk to me like one of the funniest part of the whole industries that we can't just follow the Playbook that people in falling for the last 10 years so I am now.
Samir: [25:06] But I'm buying for the last 10 years so I imagine since Samir brought you here that you are.
Jason: [25:13] 1010 data.
Sri: [25:14] Yes so so mien and I are looking at creative ways on Parklane looking at not just Amazon's data but also looking at me Channel and we'll have we had a chat today standing outside the door waiting for you all about DTC. And looking at not just a POS data and sales and things of that nature without Denton could also getting in getting to share. And actually help manufacturers try and understand their role in the category if you listen to some me earlier you talked about 42% growth 58% growth. 48%. These are no ordinary numbers guys I mean the last time CPD in retail solve 42 + 48% it's been awhile. So somebody can have some real fun here if he chooses to and I have a strong suspicion he does if you don't.
Scot: [25:58] How to say it just come here the Jason Scott show takes 10% of every deal kind of consummated before after or during the podcast.
Sri: [26:07] How many minutes before so somebody's going to check in if its 8 minutes before I think he's going over here but 12 minutes I'd be worried if I was some here.
Scot: [26:15] We might live a very long cookies.
Sri: [26:18] It Last Forever.
Jason: [26:19] 30-day attribution window.
Sri: [26:21] Buy actually clean up my cookies every time it's automated now so.
Jason: [26:24] It's cute that you think we're still using cookies.
Sri: [26:29] Sometimes better than cpg I told you also have no substance you guys weren't listening. Sometimes it gets exposed but back on the partnership right I truly believe there's a place for a. Data vendor and I shouldn't say they don't like morphing into an lyrics inside things of that nature. Category growth basket level transaction I'm short and turned it over the course of time of play to all the strengths and actually bring that level of relevancy. 2D cpg industry.
Scot: [27:02] Sedated what was kind of rough on that for a minute so you know you're, you're kind of second generation on this what's your dashboard so you know you guys have Brazilian skews you're on all these Channel summer 153p you have like a dashboard that you look at this, how you're doing at how do you think about that.
Sri: [27:21] I look at it all and probably not not your best Benchmark because remember I'm also brick and mortar train. And so I'm no longer interested in the dashboard. Just give me data and says yes what sales was. And just what it was percent change your logo and here's a Cheddar's percent change you to go to in my eyes that's the old school way of measuring which still works in other places it doesn't work in this space in this space. Cher alone is not enough because you're measuring share of an unlimited shelf anyway so that changes and if you know the Amazon platform you know that. Number of products that show up changes on a minute-by-minute basis depending on who launched who got killed things of that nature. So for me it's all about the inciting LX base to me I'll rest when I can find out why she's buying it as in the consumer. What's transaction-level understanding what prompted to buy it what the behavioral drivers are. As well as a Jason categories opportunities what kind of promotional offer she's looking for what would drive her to want to make a purchase when they should come online just to learn is it an innovation she wants to learn about is good more than that for example in the baby category. A lot of these are Chick-fil-A's today Beauty care Lottery search requested a wound care does less. So getting to that level of detail I call it like drivers of the business truly getting to the causal factors yesterday's Marley was display was featured in store here it's like a complete swing it's called SEO Base Montana. I see him we talk about Royce on our way it's really decomposing and getting to that level that's the dashboard I look at.
Scot: [28:53] I can cook some more forward-looking versus the the the so so when you first started your career at Frito-Lay, imagine e-commerce looks like the sidebar kind of wacky hobby you experiment and now at at mini Brands I don't know about J&J but you know I'm a big CNBC nut and you know you see things like Dollar Shave Club being acquired, P&G has an activist in there that's like disrupting the board and he claims that they're not doing enough to be direct and that kind of thing so you probably went from being in a. Running this kind of cool little thing on the side that no one really. Focused on so now I'm ajan is pretty bright Spotlight on it does does the major role at a company like JJ get a fair amount of his ability up into the board level or is it still kind of a you know an interesting hobbies out how to. Where where is that in the spectrum of those things.
Sri: [29:38] What a great question right I can promise you e-commerce is on the radar of our CEO. Off of regional Chairman's off a cross-functional leadership I'm lucky that I work in a company that I get all their support to make this happen and I think you all know better than I do that it's not about Johnson & Johnson any large public company Wall Street analysts are asking about e-commerce. So we do have those conversations with investors and it's the right thing to do because it's a part of business that's growing and it's the future of retail in many ways. I want to see the only way to tell what shape the future it's a big place and I'm sure investors are very well aware that. And I'm fortunate that my leadership support me in this journey and we've been able to build a good business model that works for everybody.
Scot: [30:23] Another kind of questions are there the the cost to create a new brand is going to lay down so you're at chop talk you know we're talking like Jason had kind of are on the program we've seen, baywater and all these branches can I get born in this new digital age, and it used to cost you a millions millions of dollars to create a brand and companies like yours would go and do the $59 ad campaign and all that now that causes come down as a House of brands do you guys does that. Did you find yourself looking at those things going to maybe acquire them or does it give you now the flexibility entrepreneur or intrapreneurial and start Brands inside or. Where are both of you guys think about that.
Sri: [31:00] It's a bit of both to be honest. I'm better this reason why Dollar Shave Club was acquired it wasn't just a product it wasn't the dollar razor on it was capabilities then you start thinking about jet.com it's not very different right after I've spent a lot of time but jet.com, Executives folks over there I mean you're talking about some of the people who know e-commerce inside out. So I think talent and expertise is still growing in the industry. And cpg companies will have to lean on buying some of that talent and expertise and that's why some of these Acquisitions happen but the wonderful thing that's happened about Brandon koobatian is. If you go back to the brick-and-mortar world. To incubate a new brand you're going to have to trade something on the planogram and 5 out of 10 times it's a brand that isn't doing so well that you own. And what change in this world is you don't have to make that trade you can launch it you can do true test and learns that you can and I was listening to I believe it was again. From Amazon you can fail fast you can fail cheap. And you can make decisions in record time and you can fix things.
Scot: [32:03] Exploding kittens Lee.
Sri: [32:06] Since I didn't go by the way I didn't know what exploding can.
Jason: [32:09] No I was little I was a little afraid to find out.
Sri: [32:12] So was I so was I.
Scot: [32:12] You guys got your your family love it's really fun it's kinda like to know.
Sri: [32:18] I don't ever play that very often my twelve-year-old Laura and I.
Samir: [32:22] I'm really good at you know.
Sri: [32:25] Have you ever tried a double stack two concerts at the same time.
Jason: [32:29] My family are big card sheets so it's like you constantly have to watch text make sure that someone is not slipping other cards under the car they play it's very sad.
Sri: [32:37] I wonder if he'll what happens on the family table but I assume there's a little bit of element of that at every table.
Scot: [32:42] Yes brings out the competition in the family. Sweetheart, curveball for you. So we had to listen or question come in and it was really interesting where if I could summarize the listener kind of said all right. Everyone says Amazon's like 60% of e-commerce they're growing 30% Walmart's growing you know. Between 25 and 60% of another quarter eBay is growing 10%. Where would you add all that up you get to kind of like. 25 or 30% and then we always say we always rely on like, Square data the Forester data that says e-commerce is going 15 to 18%. I come to the conclusion that that they're probably wrong and when I talk to some people today the industry you know they. The what the devil's argument is they say that a lot of that data is keyed off of the US Census Data that comes out that they kind of they didn't take their data and correlate to that. And then there's a lot of people that believe that that Census Data just fundamentally wrong and effectively understating e-commerce you have a point of view on that order.
Samir: [33:45] Is it on the data I don't know I can't look at the data just sort of quote any sort of specific numbers but generally speaking in a few look at whoever is putting up numbers with her, score. Whoever any panel data has strengths and weaknesses it's a reality right that you deal with within the space me and my contention based on what we've seen is that stuff. That sounds low to me. The end.
Scot: [34:09] What do you think Ecommerce is growing like a range is.
Samir: [34:11] I mean I I still think it's it's got to be God be grown in the thirty 40% range Head Soccer. Every major category is moving online more and more the asps of the products that sell online are higher than the ESPYs that you see in the store. There's a sticky Factor there's Discovery Factor whether whether it's a DDC like looking at neutrogena.com or whether it's something classic like just going to Amazon. More and more of my purchases are happening there when I think you know probably have one of the stable is the same scenario.
Scot: [34:46] SRI does that freak you out you're kind of in a pie in a world where you're worried about 15% e-commerce growth and making sure your your efforts grow that faster faster and what if the bar really is 20 to 30%.
Sri: [34:57] Get to Wild swing by category I think the overall notion that e-commerce is going fast if any of us are debating. Statically Pharmacy so it doesn't scare me at all I think if you start looking at what.
Samir: [35:10] Looking at what a role is to the consumer we need to go at that.
Sri: [35:13] We need to go at that place so we can deliver value for the consumer and delivered Brands the daily.
Samir: [35:17] And I and keep Pace with their needs and demand so I don't get it at all I ask.
Sri: [35:19] In the hands keep face with their needs and demands so I don't feel it at all. I see all of this as a giant opportunity for a cpg companies to take leadership and do what's right for the time.
Samir: [35:31] Cilantro.
Scot: [35:32] What was the future of cpgs is it is it like half direct half wholesale no he's really kind of you know you haven't experienced any brand at Costco that's different than the Amazon that's different than the rogaine.com. If you would what's your and even outside of J&J if you know I don't want you to give us any secrets we could do that so I'd appreciate it. It would switch your vision for like 3 years were sitting here again gazing at the beautiful mountains with what we talkin about.
Sri: [35:58] In the last 3 years right in any comp the strategy for today doesn't apply 6 months from now and business planning that I kind of plan down and thought just yesterday I was kind of talking to. Star Chief customer officer in terms of what's the next evolution of e-commerce that we need to focus on right and we both can card.
Samir: [36:18] Any strategy.
Sri: [36:19] But you were kind of buildings got about a 6 month old. I'm and if I look at a few years down the line where is business going to be done I think I'd be fooling you and your listeners if I said. It's going to be only one way versus anything else it's going to be a mix of it all it's going to be vacant lot is not going away first of all make a big him or is here to stay it's going to have it.
Samir: [36:34] Vicki Lawrence is here to stay it's going to have a distinct gold.
Sri: [36:41] Fulfilling a distinct Mission depending on the category I see.
Samir: [36:45] Did you see me.
Sri: [36:46] I see your milk runs some of the girls that aren't being preserved even in the long run in a bacon. Those that have no touch feel.
Samir: [36:55] Probably going more online.
Sri: [36:56] Doing more online over the course of action they probably I think they will go online over the course of time and then when you think of distribution method. Companies are going to have to learn that we talked about the one p3p FBA you know being part of all these models when the retailer selling.
Samir: [37:10] Part of all these models when the retailers are here. They want you to be part of it experiment learn and I see the future.
Sri: [37:15] Learn and I see the future starting many things not just one.
Samir: [37:20] SRI it sounds like you've been in partner meetings most of your time here vendor meetings so I'm guessing you haven't had a chance to do I consume a lot of the content for or walk the show for trying my best.
Sri: [37:32] I actually spent trying my best not to do vendor meetings in restaurants and bars actually go to. The vendors to throw truly trying to understand who they are not meet with one person like classically a business development person truly but truly get into the meat of what product they have things of that nature my belief is on.
Samir: [37:50] My belief is on that timer.
Sri: [37:52] Belief is always been. Hunger and appetite and curiosity for the spaces the way we will be able to skip history in the space and its conferences like this that you find that a median that comes in. People holding the next thing you know there's an opportunity.
Samir: [38:10] Are there any key takeaways or themes that have kind of emerged in your mind from the show.
Sri: [38:17] So I think there's good news and bad news over there I think the bad news is.
Samir: [38:21] I think a lot of.
Sri: [38:22] The stuff that I saw is still econ 101 content.
Samir: [38:26] Blackboard.
Sri: [38:27] Basics of Commerce SEO sem the good news is I still think there's a ton of opportunity and all those faces so I've definitely.
Samir: [38:31] Good news is I still think there's a ton of opportunity in all of those faces so I'm definitely met with.
Sri: [38:40] The show where does geeking out and what the next set of data needs and insights needs are and where we need to go and things of that nature. This is the place where stuff like that happens so I've seen plenty of.
Samir: [38:52] Samir have you seen any other trends of the show that are not jump out of you everyone has been talking it just seems it's been such an Amazon centered focus and. I'm waiting I'm waiting to hear some of the outside of Amazon things. It really reminds me to Amazon today is like Walmart was in the 90s right everybody everybody scared of them they're putting the screws to all the vendors it's it's a difficult you know it's a difficult spot they're trying to they're trying to grab as much as they can. And. I'm very eager to see Innovation from companies outside of Amazon so freedom for example for the things you know if anyone saw the. Mark Laurie interview today you know some of the things at Walmart trying to do our. Pretty significant right in there they're placing their placing big bats to show that they're serious. About going toe-to-toe and they've got a lot of assets disposals lot of smart people as you were saying sure you know your hiring people some of these Acquisitions are just to get the get the development Allen. And so those are some of the things that I'm saying. I think that is a good wrap up and that's actually going to be a good place to rap because it's happen again we've used up all our a lot of time but if you want to continue the conversation we encourage you to meet us over, on our Facebook page and we love to chat more if you enjoy this show if you're sure appreciate if you jump on iTunes and give us that 5-star review.
Scot: [40:18] In Sri how can people find you online you were talking about blogging earlier.
Sri: [40:22] Evereve social platform mankind can conceive so the easiest way is LinkedIn I actually block a lot about e-commerce and Amazon.
Samir: [40:28] Got some great stuff.
Scot: [40:31] Company mostly publishing LinkedIn.
Samir: [40:34] So I have my own bed.
Sri: [40:35] So I have my own website but I'm not ready.
Samir: [40:38] But it won't turn on.
Sri: [40:39] Facebook Instagram Tweed the whole gamut and now I will make sure to go to Json NDSU.
Scot: [40:47] And we will put links to your LinkedIn and on our show notes to come out with podcast with folks want to go there you're going to make a lot of LinkedIn friends that will help your numbers there.
Samir: [40:56] Samir are you still at me on Tinder is that still that's what.
Scot: [41:03] Seriously you got you publish lot of great stuff to you prefer people go to.
Samir: [41:05] Yeah I link to LinkedIn LinkedIn is this is the easiest easiest one for me.
[41:13] Kazakh feeling me.
Scot: [41:18] Goalie really appreciate guys taking time out of your busy schedule to be on the show.
Sri: [41:23] Hey thank you so much for having me in the first place always fun I think I might get my strong belief we're going to shape the industry together one can't do it alone so genuinely thank you thank you so much for connecting me.
Samir: [41:33] Thank you so much for connecting you Jason.
Jason: [41:36] I'll give that a amen and until next time happy commercing.