"The fragmented nature of the wine industry, characterized by a predominance of small producers, presents a significant challenge. These producers often lack the necessary resources—be it time, money, or human capital—to fully exploit the potential of digital technologies. This disparity hampers the industry’s overall ability to adapt and thrive in the digital age."
But it makes me wonder, do other industries that are highly fragmented also have difficulties adopting new technologies? The other thing that might be a factor is the physical characteristics of wine. It's heavy. Then there's the regulations. But still, I'm wondering about other fragmented industries.
Not as much. For example, the dry cleaning industry is super fragmented. As is the restaurant industry. However, the tech solutions/service offerings that cater to them are often pretty innovative and sophisticated. They also continue to innovate and improve. With better, cheaper tech, small businesses can become more refined and, at least, to industry-specific tech and, as a by-product, become more digitally savvy.
The difference between wine and other fragmented industries is the TAM/SAM/SOM (Total Addressable Market, Serviceable available Market, Serviceable Obtainable Market) in wine (based on the volume of producers) is small, and the ability to cost-effectively dislodge the middle tier and release appropriate margins is challenging, to say the least. Sprinkle in the needed industry-specific features make the juice not worth the squeeze.
What a great interview ! As always with Magalie, we'd love to know more and more...
This is a great point:
"The fragmented nature of the wine industry, characterized by a predominance of small producers, presents a significant challenge. These producers often lack the necessary resources—be it time, money, or human capital—to fully exploit the potential of digital technologies. This disparity hampers the industry’s overall ability to adapt and thrive in the digital age."
But it makes me wonder, do other industries that are highly fragmented also have difficulties adopting new technologies? The other thing that might be a factor is the physical characteristics of wine. It's heavy. Then there's the regulations. But still, I'm wondering about other fragmented industries.
Not as much. For example, the dry cleaning industry is super fragmented. As is the restaurant industry. However, the tech solutions/service offerings that cater to them are often pretty innovative and sophisticated. They also continue to innovate and improve. With better, cheaper tech, small businesses can become more refined and, at least, to industry-specific tech and, as a by-product, become more digitally savvy.
The difference between wine and other fragmented industries is the TAM/SAM/SOM (Total Addressable Market, Serviceable available Market, Serviceable Obtainable Market) in wine (based on the volume of producers) is small, and the ability to cost-effectively dislodge the middle tier and release appropriate margins is challenging, to say the least. Sprinkle in the needed industry-specific features make the juice not worth the squeeze.