The digitalization of trade

The virtualization of trade- decentralization

The virtualization of trade in goods and services is a competition to win the favor of customers by maximizing their satisfaction.

The decentralization of consumption devalues the physical presence of retail. Retailers have failed to preserve the magic of consumption, the special nature of “going shopping” and have lost their customers to their efficiency, speed, convenience and transparency of internet platforms.

The customer is in the focus. For the first time, this is no empty phrase, but corresponds to the facts, because all retailers must come to the customer, otherwise they will do less and less business or in the end, no business at all.

Two catalysts are driving the E- commerce boom on the stock market:

  1. The shift from physical to digital presence.
  2. The shift from many small and medium-sized providers to a few large providers.

„The winner takes it all“

The logic of the Fintech mega trend is exactly the opposite

Disruption comes from many small but innovative start-ups. As a rule, existing, mature business models are taken and optimized at the crucial points. The best Fintechs, however, design entirely new business ideas that push open the doors to new growth and high profits, because customers experience a benefit that was previously unavailable.

Technology is breaking down walls and restrictions. In the past, it was simply not possible to trade half a stock. There were (and are) only whole pieces. But virtualization makes it possible for customers to acquire virtual fractions of securities and participate syntactically 1 to 1 in their performance. Micro-investing is the buzzword here.

Techniques like blockchain are breaking down old structures that previously seemed immovable. Why not buy a property with the swipe of a finger? Where today the notary and the land registry still stand in the way, tomorrow a platform is already conceivable that, with the right software, allows complete or partial real estate transactions at the touch of a button.

That’s why everything in the E-commerce & Fintech theme portfolio is all about one thing :

„High risk, high reward“