[ekianjo]

So what, you think there are no economies of scale? Obviously traditional retail will keep being strong, because it will remain cheaper and with higher margins. You are instead looking at and expanding market.

When something new comes, it does not mean it replaces something existing. Same mistake people do with tablets, thinking they will make all desktop computers completely disappear. AGain, it just leads to more fragmentation and a bigger cake overall.

[antr]

1. I haven't said "there are no economies of scale"; and I don't know how this relates to my point.

2. "traditional retail will keep being strong", during the past 5 years retail has been one of the hardest hit industries both in the US and Europe, I don't understand the basis for such argument.

3. "will remain cheaper and with higher margins" - retail prices tend to have an over cost of 30%-40% due to fixed costs, primarily due to distribution, real estate and retailer markup. Again, I don't understand the basis for such argument.

4. "When something new comes, it does not mean it replaces something existing." The internet replaced travel agencies, taxi/limo booking desks, the yellow pages, music distribution, etc. That's the internet alone, but if you take a look at large supermarkets such as Walmart, this has swiped mom 'n pop retail shops all over the U.S.

The great thing about this discussion is that time will tell.