The store as a showroom: having your cake and eating it too – Elaine Chen

MIT Sloan Senior Lecturer Elaine Chen

MIT Sloan Senior Lecturer Elaine Chen

From The Huffington Post

In 2005, I was shopping for an acoustic piano. Back then, piano shopping worked like this: Go to a showroom. Play every instrument. Pick one, and negotiate a price. Have it shipped to your house. Everyone understood that a piano store does not maintain much inventory on site.

Apparel shopping was completely different. Shoppers went to the store, tried things on, then paid and left with their purchase in a shopping bag.

The changing face of apparel retail

Fast forward to 2016. Piano shopping is still much the same, but apparel shopping has changed. While store sales still account for a majority of retail revenues, online sales for apparel has been growing explosively.

Nielsen found that in 2015, almost half of U.S. shoppers (41%) had bought clothes online in the last six months, and roughly 12% had made a mobile apparel purchase. Citing Morgan Stanley, Business Insider reported that Amazon has a 7% share of the apparel retail market, and will comprise a 19% of the market share by 2020. Another article cites a Cowen & Co. report which predicted that Amazon will overtake Macy’s by 2017.

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Why entrepreneurs in the developing world need new funding models – Fiona Murray

MIT Sloan Associate Dean for Innovation Fiona Murray

MIT Sloan Associate Dean for Innovation Fiona Murray

From City A.M.

Increasingly, it is innovation-driven entrepreneurs who are providing effective and scalable solutions rather than aid agencies or governments.

Traditionally, the focus of entrepreneurship in the developing world has been on creating small- and medium-sized enterprises serving local markets. However, that emphasis must shift from small firms to what MIT calls innovation-driven enterprises: start-ups that can scale for significant impact.

Building an innovation-driven enterprise is full of challenges for any entrepreneurial team. They must find an appropriate beachhead market, prototype and pilot, and recruit and retain top talent. They also require specialised entrepreneurial finance at each stage.

For development entrepreneurs, access to appropriate types of capital is a significant constraint.

Their challenges are not just about the limited availability of institutionalised venture capital, but to the full range of “risk capital” options, from initial financing by friends and family and angel investors to VCs, private equity and commercial banking. The creation of a pipeline of financial instruments is a critical bottleneck.

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Twitter Chat recap with Georgina Campbell Flatter — #MITIdea2Impact

Georgina Campbell Flatter, MEng (Oxon) SM, is the Executive Director of the MIT Legatum Center for Development and Entrepreneurship at MIT and Lecturer in Technological Innovation, Entrepreneurship, and Strategic Management at the MIT Sloan School of Management

Georgina Campbell Flatter, MEng (Oxon) SM, is the Executive Director of the MIT Legatum Center for Development and Entrepreneurship at MIT and Lecturer in Technological Innovation, Entrepreneurship, and Strategic Management at the MIT Sloan School of Management

The MIT Legatum Center for Development and Entrepreneurship together with the MIT Sloan Office of International Programs (OIP) will bring together entrepreneurs, policymakers, and philanthropists from around the world next week to accelerate global change through innovation-driven entrepreneurship – a powerful mechanism for alleviating poverty and generating prosperity.

MIT Sloan Experts participated in a Twitter chat with Georgina Campbell Flatter MS MEng, Executive Director, MIT Legatum Center for Development & Entrepreneurship, Lecturer in Technological Innovation, Entrepreneurship, and Strategic Management and  Chris Stokel-Walker, a dynamic writer for The EconomistThe Guardian and The New Statesman.

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Join Georgina Campbell Flatter for a Twitter chat on accelerating global change through innovation-driven entrepreneurship and finance

mit_london_2016

On December 13 in London, the MIT Legatum Center for Development and Entrepreneurship together with the MIT Sloan Office of International Programs (OIP) will bring together entrepreneurs, policymakers, and philanthropists from around the world to accelerate global change through innovation-driven entrepreneurship – a powerful mechanism for alleviating poverty and generating prosperity.

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How startups can run better landing page tests — Elaine Chen

MIT Sloan Senior Lecturer Elaine Chen

MIT Sloan Senior Lecturer Elaine Chen

From Xconomy

In today’s fast-changing world, new product teams are constantly pushed to do more faster. They need to run fast to keep up with rapidly changing market conditions. Oftentimes it means making decisions about what to invest in with very little information. How can teams validate hypotheses without over-investing on speculative engineering projects, and potentially losing time and money building the wrong thing?

It turns out that there is another way. In both B2B and B2C scenarios, you can often get a very good read on the interest and even purchase intent from potential economic buyers by running a series of landing page tests.

What is a landing page test?

A landing page test is a form of Minimum Viable Product (MVP) test, in which one uses a landing page as a way of gauging some aspect of customer interest and/or purchase intent.

While you can gather a tremendous amount of insight by running detailed, open-ended interviews with potential customers, at the end of the day you are still limited by what the customer thinks they will do, instead of what they will actually do. Purchase intent is frequently inflated when you test your product idea with people face to face, because they are often loath to hurt your feelings by telling you the truth. It’s emotionally much easier to just say “yes, this is very interesting!” or “Sure! I will certainly buy it!” rather than “you are talking to the wrong person – I have no interest whatsoever.”

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