There is so much devices in the country where we tend to pick a side because that is what we think we need to do. We are at a critical point in which we all need to listen more and talk less.
As part of our series about the future of retail, I had the pleasure of interviewing Daniel Shapiro of Red Points.
After working at Macy’s and eBay, Daniel joined Red Points to lead the company’s strategic partnership with eCommerce platforms, websites, Intellectual Property firms, and other stakeholders. Daniel was a Senior Manager of Brand Protection at eBay for almost 8years, where he led international teams in the disruption of counterfeits worldwide.
Thank you so much for joining us in this interview series! Before we dive in, our readers would love to learn a bit more about you. Can you tell us a story about what brought you to this specific career path?
I believe sometimes careers are part of a master plan while others are about opportunities and circumstances. My career in Brand Protection is the latter.
I reinvented myself after 28 years working in retail and moved into global eCommerce by joining eBay. Initially, I led the US Asset Protection team. However, through circumstances and opportunities, I was asked to help create eBay’s first Global Brand Protection team. As previously mentioned, sometimes that is how career paths are forged.
Can you share the most interesting story that happened to you since you started your career?
I find it interesting how the number of products that are being counterfeited continues to amaze me. Anything can be counterfeited, really. I have been in the space for almost 12 years and every day a new client joins Red Points and I often scratch my head and say “I can’t believe they counterfeited that”.
Besides the unbelievable products being counterfeited, our clients also tell us stories about the harm some of these counterfeits have caused their customers. Rather than interesting, I would categorize these stories as shocking.
Are you working on any new exciting projects now? How do you think that might help people?
At Red Points we are constantly innovating and adapting our offering to new trends.
At the moment, we are exploring the world of NFTs. Unfortunately, we are already seeing people getting scammed and purchasing fake NFTs. We are in ongoing conversations with multiple NFT marketplaces to potentially protect brands’ Intellectual Property on their site.
Simultaneously, we are seeing dramatic growth in social media impersonations. It is a common strategy for counterfeiters to be present in multiple channels such as digital marketplaces, social networks and stand-alone websites. One way counterfeiters do this is by using popular social media sites to promote their infringing listings buried in marketplaces. It is a growing technique to trick users into buying from bad actors.
These fake ads can also redirect users to a standalone website impersonating the original brand. During the whole process, shoppers think they are dealing with a legit brand when in reality it is a scammer trying to either sell them counterfeits or steal their personal data. At the beginning it was an issue mostly affecting fintech companies, however, nowadays it is present in multiple industries.
None of us are able to achieve success without some help along the way. Is there a particular person to whom you are grateful, who helped get you to where you are? Can you share a story?
People who are successful are fortunate to have many people in their lives who believed in them, supported them, and guided them. I am certainly no different.
I often think of my current situation, and how fortunate I was to have met Laura Urquizu, the CEO of Red Points. We were introduced by a common connection. We met one day over the phone and spent 50 minutes talking about business. We connected right there and then. Laura offered me the opportunity to join Red Points and even asked me to spend my first 3 months in Barcelona. Once I went back to the States, I would travel frequently to New York City since we had recently opened an office there. Overall, it was an offer I simply could not refuse.
Laura has supported my work at every turn while leading one of the fastest-growing revenue recovery and brand protection companies in the industry. The rest is history…
How have you used your success to bring goodness to the world?
Through my role at Red Points, I am proud to say I support bringing goodness to the world in many ways.
Counterfeits are harmful for a number of reasons, and a lot of large counterfeiting enterprises are actually criminal enterprises. These organizations use the money gained from fakes to get guns, drugs, human trafficking, etc. Unfortunately, by buying a fake you are financing these criminal organizations.
Another goodness I believe we’re bringing to the world by stopping counterfeiters is tackling the current environmental crisis. Most of the times, when counterfeits are confiscated they have to be destroyed, either by incineration or industrial-strength shredding. We don’t really know what fake products are made of, what chemicals have been used, etc. Manufacturing counterfeit products adds to the already pressing issue of climate change.
Ok super. Now let’s jump to the main questions of our interview. The Pandemic has changed many aspects of all of our lives. One of them is the fact that so many of us have gotten used to shopping almost exclusively online. Can you share a few examples of different ideas that large retail outlets are implementing to adapt to the new realities created by the Pandemic?
Online shopping has grown at a fast pace with ecommerce and marketplaces. Due to Covid-19 and lockdowns around the world, this tendency has seen tremendous growth.
According to Red Points’ market research from December 2021, over 70% of respondents plan to use large marketplaces such as Amazon, eBay and AliExpress for holiday shopping. In comparison, 50% of respondents said that they would purchase directly from a brand’s site.
It is also relevant to note that in comparison to legitimate brands, counterfeiters are not limited to the ways in which they export their products. They can use standard postage, which means their products can get to your consumers before you do.
We can confirm the pandemic has accelerated the growth and creativity of brands. There are lots of brands that have been created on social media and that’s how they drive their business.
However, it has been different for traditional retailers who have had to adapt to a new reality. They had to jump onto eCommerce, social media, and marketplaces. Brick and mortar is not dead, however, it needs to be complemented with eCommerce.
Physical retail has had to innovate to survive, some of them have used technology to attract customers: contactless shopping and payment. According to a Forrester’s new research, 72% of U.S. retail sales will still occur in brick and mortar stores in 20241.
As a consequence of the supply chain issue, brands are prioritizing faster and smaller shipping. Brands are following the Amazon model and drop shipping single purchases.
The supply chain crisis is another outgrowth of the pandemic. Can you share a few examples of what retailers are doing to pivot because of the bottlenecks caused by the supply chain crisis?
Another consequence of the pandemic is the supply chain crisis across verticals. Inventory levels had dropped dramatically since the beginning of the crisis. Global supply chains and shipments slowed, causing worldwide shortages. Simultaneously, supply chains have been disrupted by illicit trade.
As a result of the supply chain crisis, some of our retail clients have adopted some new behaviors:
● Traditional retailers have shifted to shipping their products directly from manufacturers to customers.
● Furthermore, they have had to strategically allocate inventory based on their priority markets.
● Diversifying their supply providers has helped them meet their demand regardless of the supply chain crisis.
● Lastly, long-term strategy retailers should adopt is to partially allocate their manufacturing facilities onshore. It can help retailers avoid many of the challenges they are currently facing due to manufacturing offshore.
The so-called “Retail Apocalypse” has been going on for about a decade. While many retailers are struggling, some retailers, like Lululemon, Kroger, and Costco are quite profitable. Can you share a few lessons that other retailers can learn from the success of profitable retailers?
While I do not profess to be all knowing of the entire landscape of retail, I would imagine at the foundation of all great retailers is their ability to adapt and change at a rapid pace.
During my 28 years in retail, one of the phrases we liked to use in our business was…. “If you are not doing something to get better every day, then by definition you are getting worse”. Meaning retail is fierce, and standing still or celebrating last year’s success for too long can have devastating impacts.
Thank you for all of that. We are nearly done. Here is our final ‘meaty’ question. You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be?
I love this question!
I would say be kind and tolerant to one another. There is so much devices in the country where we tend to pick a side because that is what we think we need to do. We are at a critical point in which we all need to listen more and talk less. Helping those in need is essential.
How can our readers further follow your work?
Authority Magazine readers can get a glimpse into Red Points’ work through the Heroes of Brand Protection podcast, and webinars. . This year, we will also be attending physical conferences, such as IACC’s Annual Conference and INTA’s Annual Meeting.
This was very meaningful, thank you so much, and we wish you only continued success.
Daniel Shapiro Of Red Points On The Supply Chain and The Future Of Retail was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.