FUTURE OF ECOMMERCE 10 - Peer 2 Peer Boards
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
I N D EPEN D EN T P U B L I C AT I O N BY RACONTEUR.NET #0675 30/06/2020
FUTURE OF
ECOMMERCE
03 ARE CONSUMERS MORE
PATIENT THAN BEFORE? 04 WHY BIG BRANDS ARE
JOINING THE D2C PARTY 10 UNDERSTANDING THE
CHANGING B2B BUYER
I N D EPEN D EN T P U B L I C AT I O N BY RACONTEUR.NET #0565 2 9/ 0 1 / 2 0 1 9 RACONTEUR.NET 03
FUTURE OF S U PPLY C H A IN
ECOMMERCE
When rapid delivery is
Distributed in
Published in association with
no longer an option
Long queues and delivery delays have become an accepted part of consumer
purchases over recent months. But even if customers have become more
patient, communications still play a key part in keeping them happy
Rich McEachran As high streets begin to welcome
Contributors
Wynand van Poortvliet/Unsplash
customers back into stores, many
s panic buying swept the UK remain wary about returning to
MaryLou Costa Nick Easen A at the end of March, super- physical shops before, and unless, a
Business writer and editor Award-winning writer markets expanded their vaccination for COVID-19 has been
specialising in marketing, and broadcaster, covering home-delivery capacity to cope with developed. While others might have
tech and startups, with science, tech and
customer demand, with many con- adjusted to the convenience of having
work published in The business, and producing
Guardian, The Observer content for BBC World
sumers opting to stay safe indoors as their groceries delivered to their door.
and Marketing Week. News, CNN and Time. the nation went into lockdown. According to Mark Dodds, chair
What awaited those shoppers, how- of the Chartered Institute of
Olivia Gagan Rich McEachran ever, were clogged online booking Marketing’s food, drink and agricul-
Journalist writing about Journalist covering tech,
systems showing next available deliv- ture sector interest group, the mixed
energy, sustainability startups and innovation,
and culture for titles writing for The Guardian, ery slots in three to four weeks' time feelings among customers means
including The Times, The The Telegraph and – not exactly a convenient option for retailers and businesses are having
New York Times and Time Professional Engineering. families struggling to get their daily to rethink and adjust their market-
Out London. essentials. Of course, the other option ing strategies to temper customer
Alex Wright
was to brave the hour-long queues demand and expectations.
Megan Tatum Business journalist
Journalist covering writing for international snaking around the car parks of every “The issue for retailers going for-
health, business and finance trade publications major supermarket across the coun- ward will be mainly strategic. If they
travel for publications including Acuity, try, come rain or shine. believe there is money to be made
including Women's Insurance Times and Very few merchants have been in-store, where they can attract con-
Health, The Guardian Risk & Insurance.
immune to the crisis; even the sumers with impulse buys, for exam-
and Wired.
mighty Amazon is still telling cus- ple, marketing’s role is to convince
tomers to expect a longer-than- consumers that it’s safe and hassle
usual wait for deliveries on certain free to enter their stores,” he says.
items. Just six months ago, many On the other hand, the financial
would have refused to wait just an Managing customer expectations always last-mile delivery that’s to impact of COVID-19 has meant some
additional day for an online order has never been more important. blame for a parcel not arriving on high-street businesses have been
to arrive, but customers have slowly No matter how patient a customer time. Lockdowns and travel restric- forced to shutter because they can’t
adjusted to the new normal COVID- remains, waiting for a parcel to arrive, tions have meant some destinations afford their rent. There will also be
19 has ushered in. frustration will eventually set in if a have been unreachable, while others those that have decided it no longer
So, what does this mean for the business’s supply chain isn’t in order. required couriers to rely on different makes sense to maintain a bricks-
future of ecommerce? Has the pan- “There are some businesses that modes of transport. Using commer- and-mortar presence and are cur-
demic reset consumer expectations will have spotted the threat of the cial airlines to ship internationally, rently pivoting to being online only.
for free, rapid, next-day delivery? pandemic early and taken action, typ- for example. “Ecommerce has not been the
And if so, how long will this new ically those with global supply chains “Clearly no fulfilment provider, most profitable channel for some
era of customer understanding and and operations in China. They were like ourselves, has been in a position because of the infrastructure and
Publishing manager Head of production patience last? able to evaluate the potential impact to do anything about the resultant systems investment required. But
Emma Ludditt Justyna O'Connell It’s not just the big-name grocers of the pandemic, shutdowns and delays or unreachable destinations,” the pandemic may have changed
that have experienced a boom in lockdowns, and use their experience says Bysh. “We’ve been combating this and ecommerce has the oppor-
Associate editor Design
online ordering. Across the board, in that region to guide them,” says this by communicating everything tunity to become a more important
Peter Archer Sara Gelfgren
Kellie Jerrard customer demand for ecommerce Simon Geale, senior vice president for we know about couriers back to our profit stream,” says Dodds.
Deputy editor Harry Lewis-Irlam services is up, with home, garden client solutions at procurement ser- small business clients. This ena- As for those businesses that offer
Francesca Cassidy Celina Lucey and electricals sales going through vices provider Proxima. bles them to make smarter decisions both in-store and online shopping,
Colm McDermott the roof compared with last year. However, for every organisation with about their own communications the key for them could be to encour-
Managing editor Samuele Motta Data from the Office for National a global supply chain and operations in and promises to their customers.” age people to use ecommerce when-
Benjamin Chiou Jack Woolrich Statistics reveals retail sales suffered China, there are hundreds of smaller The complexities of supply chains, ever possible. This could help to
Digital content executive Art director
their biggest monthly fall on record businesses that don’t have the insight coupled with the uncertainties of reduce the size of queues and mini-
Taryn Brickner Joanna Bird in April, the first full month of lock- to plan ahead. For those, clear commu- the pandemic and a potential sec- mise the pandemonium, as witnessed
down, while ecommerce sales rose nication is the order of the day. ond wave of infections, mean retail’s in March and April, in the event of a
Design director to a record high. Online shopping Supply chains can be complex reset button isn’t going to be pressed second wave of infections, second
Tim Whitlock accounted for 30 per cent of all sales and involve many parties; it’s not anytime soon. lockdown or local restrictions.
in April, up from 22 per cent in March Dodds suggests that in such a sce-
58%
Although this publication is funded through advertising and and 18 per cent the year before. nario, customers could expect to
sponsorship, all editorial is without bias and sponsored features The situation in supermarkets may receive more personalised commu-
are clearly labelled. For an upcoming schedule, partnership have since settled down, but late and nication. Rather than traditional
inquiries or feedback, please call +44 (0)20 3877 3800 or delayed parcel deliveries are now an media, such as TV and print adverts,
email info@raconteur.net inevitable side-effect of increased of UK retailers surveyed in for instance, they may receive text
Raconteur is a leading publisher of special-interest content and May reported shortages of
customer demand, as high volumes messages or push notifications
research. Its publications and articles cover a wide range of topics, some goods
continue to put unprecedented pres- prompting them to shop online if
including business, finance, sustainability, healthcare, lifestyle and
technology. Raconteur special reports are published exclusively in sure on ecommerce supply chains. they haven’t done so already.
The Times and The Sunday Times as well as online at raconteur.net "While customers have been sympa- Retail experts agree ecommerce
The information contained in this publication has been obtained thetic to the complications of the pan- supply chains are likely to face
44% 60%
from sources the Proprietors believe to be correct. However, demic, many expected this to only disruption for some time to come.
said they were
no legal liability can be accepted for any errors. No part of this last a few weeks. They expected, and Clear communication and per-
experiencing reported capacity
publication may be reproduced without the prior consent of the
still expect, business to return to nor- shipping delays constraints sonalised marketing are set to be
Publisher. © Raconteur Media
mal quickly. The real picture is much just as important as speed and
less simple,” says Martin Bysh, chief agility in managing and meeting
@raconteur /raconteur.net @raconteur_london executive of fulfilment centre Huboo. CBI 2020 customer demand.
raconteur.net /ecommerce-2020
I N D EPEN D EN T P U B L I C AT I O N BY RACONTEUR.NET #0565 2 9/ 0 1 / 2 0 1 9 RACONTEUR.NET 03
FUTURE OF S U PPLY C H A IN
ECOMMERCE
When rapid delivery is
Distributed in
Published in association with
no longer an option
Long queues and delivery delays have become an accepted part of consumer
purchases over recent months. But even if customers have become more
patient, communications still play a key part in keeping them happy
Rich McEachran As high streets begin to welcome
Contributors
Wynand van Poortvliet/Unsplash
customers back into stores, many
s panic buying swept the UK remain wary about returning to
MaryLou Costa Nick Easen A at the end of March, super- physical shops before, and unless, a
Business writer and editor Award-winning writer markets expanded their vaccination for COVID-19 has been
specialising in marketing, and broadcaster, covering home-delivery capacity to cope with developed. While others might have
tech and startups, with science, tech and
customer demand, with many con- adjusted to the convenience of having
work published in The business, and producing
Guardian, The Observer content for BBC World
sumers opting to stay safe indoors as their groceries delivered to their door.
and Marketing Week. News, CNN and Time. the nation went into lockdown. According to Mark Dodds, chair
What awaited those shoppers, how- of the Chartered Institute of
Olivia Gagan Rich McEachran ever, were clogged online booking Marketing’s food, drink and agricul-
Journalist writing about Journalist covering tech,
systems showing next available deliv- ture sector interest group, the mixed
energy, sustainability startups and innovation,
and culture for titles writing for The Guardian, ery slots in three to four weeks' time feelings among customers means
including The Times, The The Telegraph and – not exactly a convenient option for retailers and businesses are having
New York Times and Time Professional Engineering. families struggling to get their daily to rethink and adjust their market-
Out London. essentials. Of course, the other option ing strategies to temper customer
Alex Wright
was to brave the hour-long queues demand and expectations.
Megan Tatum Business journalist
Journalist covering writing for international snaking around the car parks of every “The issue for retailers going for-
health, business and finance trade publications major supermarket across the coun- ward will be mainly strategic. If they
travel for publications including Acuity, try, come rain or shine. believe there is money to be made
including Women's Insurance Times and Very few merchants have been in-store, where they can attract con-
Health, The Guardian Risk & Insurance.
immune to the crisis; even the sumers with impulse buys, for exam-
and Wired.
mighty Amazon is still telling cus- ple, marketing’s role is to convince
tomers to expect a longer-than- consumers that it’s safe and hassle
usual wait for deliveries on certain free to enter their stores,” he says.
items. Just six months ago, many On the other hand, the financial
would have refused to wait just an Managing customer expectations always last-mile delivery that’s to impact of COVID-19 has meant some
additional day for an online order has never been more important. blame for a parcel not arriving on high-street businesses have been
to arrive, but customers have slowly No matter how patient a customer time. Lockdowns and travel restric- forced to shutter because they can’t
adjusted to the new normal COVID- remains, waiting for a parcel to arrive, tions have meant some destinations afford their rent. There will also be
19 has ushered in. frustration will eventually set in if a have been unreachable, while others those that have decided it no longer
So, what does this mean for the business’s supply chain isn’t in order. required couriers to rely on different makes sense to maintain a bricks-
future of ecommerce? Has the pan- “There are some businesses that modes of transport. Using commer- and-mortar presence and are cur-
demic reset consumer expectations will have spotted the threat of the cial airlines to ship internationally, rently pivoting to being online only.
for free, rapid, next-day delivery? pandemic early and taken action, typ- for example. “Ecommerce has not been the
And if so, how long will this new ically those with global supply chains “Clearly no fulfilment provider, most profitable channel for some
era of customer understanding and and operations in China. They were like ourselves, has been in a position because of the infrastructure and
Publishing manager Head of production patience last? able to evaluate the potential impact to do anything about the resultant systems investment required. But
Emma Ludditt Justyna O'Connell It’s not just the big-name grocers of the pandemic, shutdowns and delays or unreachable destinations,” the pandemic may have changed
that have experienced a boom in lockdowns, and use their experience says Bysh. “We’ve been combating this and ecommerce has the oppor-
Associate editor Design
online ordering. Across the board, in that region to guide them,” says this by communicating everything tunity to become a more important
Peter Archer Sara Gelfgren
Kellie Jerrard customer demand for ecommerce Simon Geale, senior vice president for we know about couriers back to our profit stream,” says Dodds.
Deputy editor Harry Lewis-Irlam services is up, with home, garden client solutions at procurement ser- small business clients. This ena- As for those businesses that offer
Francesca Cassidy Celina Lucey and electricals sales going through vices provider Proxima. bles them to make smarter decisions both in-store and online shopping,
Colm McDermott the roof compared with last year. However, for every organisation with about their own communications the key for them could be to encour-
Managing editor Samuele Motta Data from the Office for National a global supply chain and operations in and promises to their customers.” age people to use ecommerce when-
Benjamin Chiou Jack Woolrich Statistics reveals retail sales suffered China, there are hundreds of smaller The complexities of supply chains, ever possible. This could help to
Digital content executive Art director
their biggest monthly fall on record businesses that don’t have the insight coupled with the uncertainties of reduce the size of queues and mini-
Taryn Brickner Joanna Bird in April, the first full month of lock- to plan ahead. For those, clear commu- the pandemic and a potential sec- mise the pandemonium, as witnessed
down, while ecommerce sales rose nication is the order of the day. ond wave of infections, mean retail’s in March and April, in the event of a
Design director to a record high. Online shopping Supply chains can be complex reset button isn’t going to be pressed second wave of infections, second
Tim Whitlock accounted for 30 per cent of all sales and involve many parties; it’s not anytime soon. lockdown or local restrictions.
in April, up from 22 per cent in March Dodds suggests that in such a sce-
58%
Although this publication is funded through advertising and and 18 per cent the year before. nario, customers could expect to
sponsorship, all editorial is without bias and sponsored features The situation in supermarkets may receive more personalised commu-
are clearly labelled. For an upcoming schedule, partnership have since settled down, but late and nication. Rather than traditional
inquiries or feedback, please call +44 (0)20 3877 3800 or delayed parcel deliveries are now an media, such as TV and print adverts,
email info@raconteur.net inevitable side-effect of increased of UK retailers surveyed in for instance, they may receive text
Raconteur is a leading publisher of special-interest content and May reported shortages of
customer demand, as high volumes messages or push notifications
research. Its publications and articles cover a wide range of topics, some goods
continue to put unprecedented pres- prompting them to shop online if
including business, finance, sustainability, healthcare, lifestyle and
technology. Raconteur special reports are published exclusively in sure on ecommerce supply chains. they haven’t done so already.
The Times and The Sunday Times as well as online at raconteur.net "While customers have been sympa- Retail experts agree ecommerce
The information contained in this publication has been obtained thetic to the complications of the pan- supply chains are likely to face
44% 60%
from sources the Proprietors believe to be correct. However, demic, many expected this to only disruption for some time to come.
said they were
no legal liability can be accepted for any errors. No part of this last a few weeks. They expected, and Clear communication and per-
experiencing reported capacity
publication may be reproduced without the prior consent of the
still expect, business to return to nor- shipping delays constraints sonalised marketing are set to be
Publisher. © Raconteur Media
mal quickly. The real picture is much just as important as speed and
less simple,” says Martin Bysh, chief agility in managing and meeting
@raconteur /raconteur.net @raconteur_london executive of fulfilment centre Huboo. CBI 2020 customer demand.
raconteur.net /ecommerce-2020
04 FUTURE OF ECOMMERCE RACONTEUR.NET 05
Commercial feature
“For a long time, multinational “D2C itself doesn’t build brand
Giorgio Trovato/Unsplash
companies deluded themselves affinity. The experience has to be
thinking they were successful due to good, the brand has to be relevant,
branding and marketing. The truth the communications have to strike
of the matter is their supply chain a chord. A lot has to be executed,”
strength carried them through by says Christian Polman, chief strat-
making sure they were on the shelf egy officer at Ebiquity. A typical
Awareness and Interest and Demand and Action and
shopper
of every store, everywhere. Now What the pandemic has taught journey inspiration discovery consideration decision
global brands need to find relevance many companies is D2C ecommerce
again. They’ll need to reconnect isn’t just for smarter speciality start-
with consumers once more, this ups that don’t want legacy retail
DIRECT TO CONSUMER
time online,” says Maz Amirahmadi, and big overheads; it’s for all brands
D2C gains
chief executive of ABN Impact. looking to drive preference, loyalty
What do I Have I got the
However, let’s not forget, many and repeat sales through a directly Where can
What do I want? expect from best price or
I find it?
D2C purchases during lockdown owned relationship. Logical my product? delivery option?
were substitutions because consum- “During the crisis, customers consideration
momentum,
ers couldn’t get to supermarkets. have also closely re-evaluated their
Traditional retail is on the way back consumption habits, what they
and it’s more suited to consolidated define as essential products, as well Do they provide
shopping and product discovery. as how to live better lives, even for Will this make Does this
Am I reassured features and
my life better product reflect
but success not
Those who have adopted D2C ecom- the good of others. These values by the views of services that
or make me my values and
Emotional others like me? value me and
merce to sell milk, coffee or other are now guiding customers towards feel good? who I want to be?
connection my needs?
everyday products take note. brands that represent their own
“The coronavirus crisis has cre- personal aspirations,” explains
guaranteed
ated an amazing trial for D2C, but Michelle Du-Prât, group strategy
New ecommerce
long-term success will go to the director at Household.
companies that provide outstand- There’s no doubt, habits and per-
ing value with quality products,” ceptions have changed, and new
says David Mayer, senior partner for behaviours learnt. The general pub-
battleground is over
brand strategy at Lippincott. lic certainly won’t forget this pan-
The coronavirus pandemic has been a catalyst The biggest shift recently is that demic in a hurry.
for some of the world’s biggest brands to open Through Snacks.com,
it’s not only younger generations
shopping online anymore, peo-
“We believe there will be a ‘lock-
down loyalty effect’. Consumers will
emotional intelligence
online stores serving products direct to consumers’ PepsiCo has launched
a D2C service offering
ple of all ages have been forced to
adopt new digital behaviours. This
remember the brands and retail-
ers that got them through the dark-
free delivery on its
homes. But will the popularity of this relatively new 100-plus Frito-Lay certainly favours the D2C model in est lockdown days,” Hugh Fletcher,
products such the long run, but brands will need global head of innovation at
purchasing model last as shops start to reopen? as Cheetos
solid budgets and invest more to Wunderman Thompson Commerce
make it work. concludes. Brands take note.
Improving the online customer experience is paramount
as ecommerce shifts up a gear
Nick Easen consumer need and it needs to be
supported by the right order value to
make it viable.”
etail has had the equiva- dead set on their favourite ketchup consumers expectant and impatient as an operation scales,” says Ali Bundling products together has n physical retail stores, the enhancing brand experiences and “It’s not just about looking at clas-
R lent of a coronary bypass or kombucha brand. They saw a with their slick, quick and cost-ef- Holmes, senior ecommerce director helped in some cases, but what’s I shop assistants worth their inspiring product discovery. sical datapoints, such as purchases
in the last few months. huge opportunity to build loyalty fective deliveries. Bricks and mortar at PepsiCo UK. made it worthwhile, aside from bet- weight in gold were the ones “For a long time, delivering a more and clicks, but also data that infers
The lifeblood of goods that flowed simply by supplying goods to needy provide an easier route to market. “To offset these economics, it’s ter profit margins, is something con- who sized you up and tailored their personalised shopper experience has emotional needs like what values are
to consumers through the heart of consumers online. With D2C there’s the logistics, tech- been crucial to develop the right sumer goods firms have wanted for a sales pitch. They knew your habits been the battlefront. But most brands important to customers, what is their
the high street was cut off overnight. “Coronavirus triggered many nology platforms and payments, proposition to meet a specific long time: customer data. through basic profiling and with a have done this without the context of emotive state right now and what
Savvy brands, ever-conscious of brands to reassess their existing while dealing with the general pub- “Brands that rely on supermarkets, bit of prompting your needs as they what the shopper is seeking to achieve motivates them? Understanding cus-
their commercial health, performed routes to market. As the world begins lic’s countless demands. marketplaces and retailers to sell observed you browsing. With the at any given moment. They’ve really had tomer intent is vital as it evolves from
drastic surgery to avoid an eco- to return to some level of normal- It’s also one thing to scale up a D2C their products are at the mercy of coronavirus pandemic this process a mass customisation approach. More moment to moment during shopping
nomic bloodbath and went direct to ity, it’ll be interesting to see which offering quickly; it’s another to keep these partners in feeding data back. has shifted online at a speed that’s has to be done to engage customers on journeys. Artificial intelligence can
the consumer. strategies become lasting changes it fully operational, optimised and D2C is the singular source of truth truly unprecedented. an emotional level. For that you need now make sense of the data, with the
Fuelled by images of empty and which are left by the wayside,” constantly changing in line with and a real insight for brands. This “Since the lock-down, shopping to know each shopper’s true intent and right cocktail of algorithms to solve
shelves, a surge in home shop- says Tim Bond, head of insight at the consumers’ expectations. cannot be underestimated,” says habits have accelerated into the know why they are there, and where each problem.”
ping and a need to access consum- Data & Marketing Association. “The most significant challenge Companies thought they were Elliott Jacobs, director of commerce future. Digital is now king. Even though they are on the buyer journey,” says Nudge marketing, which has been
er-packaged goods, PepsiCo, Nestlé That’s because this D2C model building a D2C model from scratch consulting at LiveArea. it’s been forced upon us, the corona- John Raap, chief strategy officer from used in consumer psychology, can
and Heinz all launched direct- exploited a market failure: a lack is economics. The cost of customer successful due to branding and Newly hatched D2C brands are virus has done for ecommerce, what AIM-listed Attraqt, which works with also be used on a one-to-one level
to-consumer, or D2C, offerings in
lockdown, appealing to those who
of supply or a perception of one.
But D2C ecommerce is not for the
acquisition and bringing consum-
ers online is initially expensive,
marketing. The truth is their now creating their own databases,
analysing behavioural and sales
Apple’s iPhone did for mobile phones;
it’s been a real paradigm shift. Online
some of the biggest names in retail
from adidas to ASOS, The Kooples and
to enhance the individual shopper
experience and prompt the customer
couldn’t leave their home, but were faint hearted. Amazon has made although this gradually improves supply chain strength carried them data to maximise marketing and Heinz to Home “With big corporations, it’s shopping is fast becoming the norm for FNAC Darty. to make an informed choice. While
profits. They are A/B testing – com- When lockdown hit, Heinz to Home difficult to take risks, but we all demographics across all retail verti- The issue is that most data for cus- human expertise is still needed to
parative user-experience research was born, with bundles of beans got senior management buy-in cals,” explains Mark Adams, chief exec- tomer journeys is disconnected. It help facilitate highly curated shop-
– new offers online and using their and soup delivered direct, through quickly. We were agile and moved utive at Attraqt, a global technology exists in silos. Historical data on its ping experiences.
AT TRACTING D2C BUYERS
websites as labs for product research their first-ever online retail outlet. fast. But don’t underestimate the leader in delivering exceptional shop- own isn’t enough; consolidating this “Attraqt’s platform allows retailers
Top factors that have encouraged buyers to purchase D2C products Interactive Advertising Bureau 2019 and development. “We wanted to do something investment involved,” says Nier. “It ping experiences. with real-time data across an organ- to evaluate the emotional and logical
“This requires new skillsets for with a purpose for those who also allowed us to gather customer “Some major brands have seen a 300 isation, systems and teams is vital. needs of the shopper and to orches-
Free shippings 49% brands that historically haven’t couldn’t get to supermarkets. A data; we’ve never had this kind of per cent growth in web traffic, reallo- The pandemic and competition from trate the correct response to individ-
owned their own customer data. The simple proposition was key; within direct engagement before. So it’s cating resources to manage expand- marketplaces is forcing companies to ual moments on the customer jour-
Lower price 46% fact is data scientists are in demand three weeks, we launched with a a real game-changer.” ing digital channels. Without a phys- pool data sources, boost collaboration ney. Developments in neural networks
and they aren’t cheap,” says Tom team of four people. Partnerships You can now personsalise ical presence or availability in-store, across departments and in the process allow us to do this at speed now. Brands
Product sample 37% Roberts, chief executive of Tribal were imperative,” explains Jean mayonnaise bottles. It’s now there’s intense pressure on brands to understand consumer intent at every can boost customer conversion and
Free gift with purchase 36% Worldwide London. Philippe Nier, head of ecommerce taking on a life of its own. “It’s create inspirational shopping experi- moment of a customer’s journey. improve average order value, while at
The big question is whether this UK at Kraft Heinz. a bold and savvy move that ences online.” “With COVID-19, shopping behav- the same time winning the loyalty of
Coupons/discount codes 35% move to a D2C ecommerce model is They cleverly teamed up with Blue captures a moment in our daily The pandemic has also seen mar- iour is unpredictable. Brands need shoppers,” Raap concludes.
here to stay. It’ll certainly become part Light Card, the discount service lives, leveraging the opportunity ketplaces such as Amazon or Alibaba to be agile. This challenge can only
Great ads 22%
of a multi-channel offering; whether it for the NHS, offering frontline to regain lost ground. Whether thrive as they provide convenience, be met through an orchestrated
A new product or innovation 21% grows significantly is another matter. workers free deliveries. This gave this represents a stroke of price and speed of delivery to cus- approach pulling together consumer Connect more with your customer
The internet is a crowded place and them instant access to potential genius or something else, the tomers. In response, retail brands, psychology, merchandising and now at www.attraqt.com
Great online content 21% staying top of mind is a constant chal- customers in a data regulation- opportunity will not come round rather than compete on these touch- machine-learning to understand the
lenge. That’s why an in-store presence compliant way. A fulfilment house again,” explains Nick Cooper, points and just provide a transactional customer, their motivations and to
Loyalty/rewards programme 19%
works. Digitally native brands are rolled out deliveries, while Shopify group executive director at experience, have had to offer more. predict the best next action at every
Personalised products/content 18% voracious competitors, since online is took payments. Landor & FITCH. For these companies, the oppor- moment in real time,” says Raap of
their primary channel. Marketplaces tunity will come from investing in Attraqt, which works with more than
Cool packaging 17% also dominate. deeper connections with customers, 300 brands globally.
04 FUTURE OF ECOMMERCE RACONTEUR.NET 05
Commercial feature
“For a long time, multinational “D2C itself doesn’t build brand
Giorgio Trovato/Unsplash
companies deluded themselves affinity. The experience has to be
thinking they were successful due to good, the brand has to be relevant,
branding and marketing. The truth the communications have to strike
of the matter is their supply chain a chord. A lot has to be executed,”
strength carried them through by says Christian Polman, chief strat-
making sure they were on the shelf egy officer at Ebiquity. A typical
Awareness and Interest and Demand and Action and
shopper
of every store, everywhere. Now What the pandemic has taught journey inspiration discovery consideration decision
global brands need to find relevance many companies is D2C ecommerce
again. They’ll need to reconnect isn’t just for smarter speciality start-
with consumers once more, this ups that don’t want legacy retail
DIRECT TO CONSUMER
time online,” says Maz Amirahmadi, and big overheads; it’s for all brands
D2C gains
chief executive of ABN Impact. looking to drive preference, loyalty
What do I Have I got the
However, let’s not forget, many and repeat sales through a directly Where can
What do I want? expect from best price or
I find it?
D2C purchases during lockdown owned relationship. Logical my product? delivery option?
were substitutions because consum- “During the crisis, customers consideration
momentum,
ers couldn’t get to supermarkets. have also closely re-evaluated their
Traditional retail is on the way back consumption habits, what they
and it’s more suited to consolidated define as essential products, as well Do they provide
shopping and product discovery. as how to live better lives, even for Will this make Does this
Am I reassured features and
my life better product reflect
but success not
Those who have adopted D2C ecom- the good of others. These values by the views of services that
or make me my values and
Emotional others like me? value me and
merce to sell milk, coffee or other are now guiding customers towards feel good? who I want to be?
connection my needs?
everyday products take note. brands that represent their own
“The coronavirus crisis has cre- personal aspirations,” explains
guaranteed
ated an amazing trial for D2C, but Michelle Du-Prât, group strategy
New ecommerce
long-term success will go to the director at Household.
companies that provide outstand- There’s no doubt, habits and per-
ing value with quality products,” ceptions have changed, and new
says David Mayer, senior partner for behaviours learnt. The general pub-
battleground is over
brand strategy at Lippincott. lic certainly won’t forget this pan-
The coronavirus pandemic has been a catalyst The biggest shift recently is that demic in a hurry.
for some of the world’s biggest brands to open Through Snacks.com,
it’s not only younger generations
shopping online anymore, peo-
“We believe there will be a ‘lock-
down loyalty effect’. Consumers will
emotional intelligence
online stores serving products direct to consumers’ PepsiCo has launched
a D2C service offering
ple of all ages have been forced to
adopt new digital behaviours. This
remember the brands and retail-
ers that got them through the dark-
free delivery on its
homes. But will the popularity of this relatively new 100-plus Frito-Lay certainly favours the D2C model in est lockdown days,” Hugh Fletcher,
products such the long run, but brands will need global head of innovation at
purchasing model last as shops start to reopen? as Cheetos
solid budgets and invest more to Wunderman Thompson Commerce
make it work. concludes. Brands take note.
Improving the online customer experience is paramount
as ecommerce shifts up a gear
Nick Easen consumer need and it needs to be
supported by the right order value to
make it viable.”
etail has had the equiva- dead set on their favourite ketchup consumers expectant and impatient as an operation scales,” says Ali Bundling products together has n physical retail stores, the enhancing brand experiences and “It’s not just about looking at clas-
R lent of a coronary bypass or kombucha brand. They saw a with their slick, quick and cost-ef- Holmes, senior ecommerce director helped in some cases, but what’s I shop assistants worth their inspiring product discovery. sical datapoints, such as purchases
in the last few months. huge opportunity to build loyalty fective deliveries. Bricks and mortar at PepsiCo UK. made it worthwhile, aside from bet- weight in gold were the ones “For a long time, delivering a more and clicks, but also data that infers
The lifeblood of goods that flowed simply by supplying goods to needy provide an easier route to market. “To offset these economics, it’s ter profit margins, is something con- who sized you up and tailored their personalised shopper experience has emotional needs like what values are
to consumers through the heart of consumers online. With D2C there’s the logistics, tech- been crucial to develop the right sumer goods firms have wanted for a sales pitch. They knew your habits been the battlefront. But most brands important to customers, what is their
the high street was cut off overnight. “Coronavirus triggered many nology platforms and payments, proposition to meet a specific long time: customer data. through basic profiling and with a have done this without the context of emotive state right now and what
Savvy brands, ever-conscious of brands to reassess their existing while dealing with the general pub- “Brands that rely on supermarkets, bit of prompting your needs as they what the shopper is seeking to achieve motivates them? Understanding cus-
their commercial health, performed routes to market. As the world begins lic’s countless demands. marketplaces and retailers to sell observed you browsing. With the at any given moment. They’ve really had tomer intent is vital as it evolves from
drastic surgery to avoid an eco- to return to some level of normal- It’s also one thing to scale up a D2C their products are at the mercy of coronavirus pandemic this process a mass customisation approach. More moment to moment during shopping
nomic bloodbath and went direct to ity, it’ll be interesting to see which offering quickly; it’s another to keep these partners in feeding data back. has shifted online at a speed that’s has to be done to engage customers on journeys. Artificial intelligence can
the consumer. strategies become lasting changes it fully operational, optimised and D2C is the singular source of truth truly unprecedented. an emotional level. For that you need now make sense of the data, with the
Fuelled by images of empty and which are left by the wayside,” constantly changing in line with and a real insight for brands. This “Since the lock-down, shopping to know each shopper’s true intent and right cocktail of algorithms to solve
shelves, a surge in home shop- says Tim Bond, head of insight at the consumers’ expectations. cannot be underestimated,” says habits have accelerated into the know why they are there, and where each problem.”
ping and a need to access consum- Data & Marketing Association. “The most significant challenge Companies thought they were Elliott Jacobs, director of commerce future. Digital is now king. Even though they are on the buyer journey,” says Nudge marketing, which has been
er-packaged goods, PepsiCo, Nestlé That’s because this D2C model building a D2C model from scratch consulting at LiveArea. it’s been forced upon us, the corona- John Raap, chief strategy officer from used in consumer psychology, can
and Heinz all launched direct- exploited a market failure: a lack is economics. The cost of customer successful due to branding and Newly hatched D2C brands are virus has done for ecommerce, what AIM-listed Attraqt, which works with also be used on a one-to-one level
to-consumer, or D2C, offerings in
lockdown, appealing to those who
of supply or a perception of one.
But D2C ecommerce is not for the
acquisition and bringing consum-
ers online is initially expensive,
marketing. The truth is their now creating their own databases,
analysing behavioural and sales
Apple’s iPhone did for mobile phones;
it’s been a real paradigm shift. Online
some of the biggest names in retail
from adidas to ASOS, The Kooples and
to enhance the individual shopper
experience and prompt the customer
couldn’t leave their home, but were faint hearted. Amazon has made although this gradually improves supply chain strength carried them data to maximise marketing and Heinz to Home “With big corporations, it’s shopping is fast becoming the norm for FNAC Darty. to make an informed choice. While
profits. They are A/B testing – com- When lockdown hit, Heinz to Home difficult to take risks, but we all demographics across all retail verti- The issue is that most data for cus- human expertise is still needed to
parative user-experience research was born, with bundles of beans got senior management buy-in cals,” explains Mark Adams, chief exec- tomer journeys is disconnected. It help facilitate highly curated shop-
– new offers online and using their and soup delivered direct, through quickly. We were agile and moved utive at Attraqt, a global technology exists in silos. Historical data on its ping experiences.
AT TRACTING D2C BUYERS
websites as labs for product research their first-ever online retail outlet. fast. But don’t underestimate the leader in delivering exceptional shop- own isn’t enough; consolidating this “Attraqt’s platform allows retailers
Top factors that have encouraged buyers to purchase D2C products Interactive Advertising Bureau 2019 and development. “We wanted to do something investment involved,” says Nier. “It ping experiences. with real-time data across an organ- to evaluate the emotional and logical
“This requires new skillsets for with a purpose for those who also allowed us to gather customer “Some major brands have seen a 300 isation, systems and teams is vital. needs of the shopper and to orches-
Free shippings 49% brands that historically haven’t couldn’t get to supermarkets. A data; we’ve never had this kind of per cent growth in web traffic, reallo- The pandemic and competition from trate the correct response to individ-
owned their own customer data. The simple proposition was key; within direct engagement before. So it’s cating resources to manage expand- marketplaces is forcing companies to ual moments on the customer jour-
Lower price 46% fact is data scientists are in demand three weeks, we launched with a a real game-changer.” ing digital channels. Without a phys- pool data sources, boost collaboration ney. Developments in neural networks
and they aren’t cheap,” says Tom team of four people. Partnerships You can now personsalise ical presence or availability in-store, across departments and in the process allow us to do this at speed now. Brands
Product sample 37% Roberts, chief executive of Tribal were imperative,” explains Jean mayonnaise bottles. It’s now there’s intense pressure on brands to understand consumer intent at every can boost customer conversion and
Free gift with purchase 36% Worldwide London. Philippe Nier, head of ecommerce taking on a life of its own. “It’s create inspirational shopping experi- moment of a customer’s journey. improve average order value, while at
The big question is whether this UK at Kraft Heinz. a bold and savvy move that ences online.” “With COVID-19, shopping behav- the same time winning the loyalty of
Coupons/discount codes 35% move to a D2C ecommerce model is They cleverly teamed up with Blue captures a moment in our daily The pandemic has also seen mar- iour is unpredictable. Brands need shoppers,” Raap concludes.
here to stay. It’ll certainly become part Light Card, the discount service lives, leveraging the opportunity ketplaces such as Amazon or Alibaba to be agile. This challenge can only
Great ads 22%
of a multi-channel offering; whether it for the NHS, offering frontline to regain lost ground. Whether thrive as they provide convenience, be met through an orchestrated
A new product or innovation 21% grows significantly is another matter. workers free deliveries. This gave this represents a stroke of price and speed of delivery to cus- approach pulling together consumer Connect more with your customer
The internet is a crowded place and them instant access to potential genius or something else, the tomers. In response, retail brands, psychology, merchandising and now at www.attraqt.com
Great online content 21% staying top of mind is a constant chal- customers in a data regulation- opportunity will not come round rather than compete on these touch- machine-learning to understand the
lenge. That’s why an in-store presence compliant way. A fulfilment house again,” explains Nick Cooper, points and just provide a transactional customer, their motivations and to
Loyalty/rewards programme 19%
works. Digitally native brands are rolled out deliveries, while Shopify group executive director at experience, have had to offer more. predict the best next action at every
Personalised products/content 18% voracious competitors, since online is took payments. Landor & FITCH. For these companies, the oppor- moment in real time,” says Raap of
their primary channel. Marketplaces tunity will come from investing in Attraqt, which works with more than
Cool packaging 17% also dominate. deeper connections with customers, 300 brands globally.
06 FUTURE OF ECOMMERCE RACONTEUR.NET 07
Commercial feature
Zeekit
Q&A
Retail beyond the buy button:
Prioritising the post-
purchase experience
Brand experiences last well after consumers click “buy”, and are becoming
ever-more important in the coronavirus era. Bruce Fair, chief revenue officer
of delivery management technology provider Metapack, explains that the right
technology is so often the difference between a good and bad experience
4%
FASHION people who weren't used to shopping
online feel more confident, so the Metapack’s data shows the to reopen, orders continue to rise and online shopping experience is enough at last count almost 500 carriers and demand has gone through the roof. One
AR hits its stride in
volume of overall shoppers goes up. coronavirus pandemic has create havoc for supply chains. to turn them off a retailer for good. 5,500 delivery services. The popular- area that we’ve been helping retailers to
Those who already purchased online forced retailers to accelerate ity of technology like delivery-track- monetise is in turning their stores and
will shop more as it's more con- their digital operations. How has And how have consumers What advice are you offering your ing solutions is also growing. Solutions inventory into mini warehouses. Holland
venient and so average basket size the industry been affected? reacted as a result? customers to navigate the crisis? such as our own Delivery Tracker keep & Barrett has implemented Metapack’s
COVID-19 era
increases, and all of them will return Every year, retailers rigorously Consumers have become used One of the learnings from the customers informed as their order Ship-from-Store solution so they now
fewer items,” she says. plan for the Christmas peak, to a certain level of service, pandemic is retailers need to progresses, through SMS, email or distribute products from their stores
Those who use the Zeekit tech see when delivery and returns volumes before and after purchase. In fact, invest more in their post-purchase WhatsApp notifications. Not only is as well as their warehouse, which also
an 18 per cent average increase in of UK consumers have experienced reach their maximum. However, in more than two thirds of consumers experience. The most efficient and this a better solution for consumers, it enables them to provide their custom-
AR/VR technology being used by a
order value and a 36 per cent decrease the UK throughout April and May we say the ability to track their order is cost-effective way to do this is for retail- also relieves the pressure on customer ers with a richer experience, further
fashion brand
As apparel stores begin to reopen, many will do so without a in returns, the company says.
Even in physical stores there’s MuleSoft 2019
have already seen volumes exceed
the online shopping peak of 2019 and
one of their top three considerations
when buying a product. So what hap-
ers to make use of technology that con-
nects them with multiple carriers, giving
call centres. Crucially, the retailer, not
the carrier, owns the branding and
accelerating their multichannel trans-
formation led by chief digital officer
fitting room in sight due to strict social-distancing measures. potential to use a 3D virtual-cloth-
ing option to streamline visits, she
by an additional 24 per cent on top.
While this is great news for sales, it
pens when consumers don’t receive
their orders in the timeframe they
customers more choice when it comes
to delivery and returns. Different car-
communication with the consumer. Nick Thomas. If you order an item from
Holland & Barrett and live 200 miles
So what if consumers could try on as many items as they believes. Customers could try on also generates customer expectations expect? Well, they call the retailers to riers have different capabilities, from More than half of consumers away from its warehouse, but ten miles
a series of outfits virtually, only Though the pandemic saw three that challenge even the highest-ca- find out where they are, of course. The next-day delivery to pick-up locations. say they would be more likely to from a store, being able to deliver to you
liked without touching a single garment? requiring a physical fitting room major projects with the technol- pacity supply chains. One online problem with that is the massive cost And yet retailers have typically struggled shop from a retailer that makes from that store means you get it quicker
to pinpoint the correct size, rather ogy postponed, Konstantinidis fashion retailer we work with has the it incurs for retailers. For one major to leverage the full range because they the returns process easier. Why with a lower CO² impact.
than carrying in armfuls of stock. says interest is now firmly on the capacity to send 30 million UK parcels UK high street chain we work with, need to create individual connections is this?
The result could be individual stores rise. “Fashion brands can be slow a year and it has still found itself under customer care calls cost £4 each. And for each carrier, which is expensive, Consumers often get frus- Should retailers expect the
Megan Tatum requiring far less inventory. to engage with new technologies, pressure to meet current demand. the number of calls this chain receives time consuming and ultimately limiting. trated if returning an item isn’t current trend of digital accel-
Prior to the pandemic, but I'm hopeful that now things will On the one hand, physical store clo- has more than doubled during the The good news is there are solutions on made easy for them. One of the solu- eration to continue beyond the
Superpersonal was in discussions move faster,” he says. sures have driven more people online, pandemic. This is typical for most online the market that can do the heavy lift- tions we offer retailers is to give cus- crisis? And if so, what is your
eekit co-founder Yael Vizel selling point. As fashion stores reo- in flagship stores rather than rolled Zeekit technology with one luxury retailer to add a vir- Already there’s movement. Only while social-distancing measures in retailers. It’s not only the cost of meet- ing for them. In fact, one of the reasons tomers a choice. When they want to advice to them?
Z came up with the concept pen amid strict social-distancing out as standard”, says Laura gives customers
the ability to
tual fitting room to their store, says in May, ASOS rolled out a trial of warehouses have reduced capacity ing demand that’s at stake either, but why retailers turn to us is because we return, where they want to return and Consumers who had previously
for 3D virtual clothing while rules, many have been forced to close Morroll, senior manager at manage- virtually dress 16
Konstantinidis. But rather than sim- See My Fit, an online tool that uses and created backlogs: it’s a perfect also the cost of failing to do so: almost can connect them with a wide range of how they want to return. It’s important resisted ecommerce have been
working on radar intelligence for the physical fitting rooms completely. ment and technology consultancy models of different ply enable customers to try clothes Zeekit technology to dress 16 mod- storm. Even as physical stores begin 40 per cent of consumers say a bad delivery options for their customers, to offer variety, which is why we con- forced to shop online and have had a
Israeli Air Force. Trying on clothes virtually online BearingPoint. shapes, ages, and virtually and test their size or fit, els of different shapes, ages and eth- nect retailers to 350,000 pick-up and good experience. We anticipate the
ethnicities drop-off locations, such as a Royal Mail growth in this category will be sustained
If technology could be used to map could be the only opportunity left In fact, according to 2019 research the startup’s video tool is intended nicities in each outfit across its cat-
40%
out the 3D rise and fall of a landscape for customers to try before they buy. by software developer MuleSoft, just 4 to allow fashion brands the chance alogue virtually, as a way to avoid HOME DELIVERY VOLUMES INDEX office, a Hermes or UPS parcel shop. long after the pandemic has faded and
on a 2D aerial map, the air force com- Already Vizel says Zeekit is bus- per cent of UK consumers have expe- to create super-personalised virtual physical photoshoots. Be it through a physical store or using a retailers will continue to invest heav-
mander wondered, why couldn’t the ier than ever, fielding calls from the rienced VR/AR technology being used content too. And this could be buoyed by a 2019 2020 returns label, by giving retailers better ily in the total online experience. The
same technology layer outfits on the sector. by a fashion brand. That’s despite the Like Zeekit it uses machine-learn- greater willingness to engage from visibility on what’s coming back to their stakes to ensure business continuity
topography of a human body? At London-based startup fact that, even prior to the pandemic, ing technology to dress customers customers, Morroll at BearingPoint of consumers say a bad online warehouses, they can start processing have never been higher and this involves
“In doing so we could bring to life Superpersonal, which is set to launch developers cited major advantages in virtually in any outfit they choose. believes. “Historically, one of the shopping experience is enough to 160 those returns and better manage their the ongoing ability to ship to consumers
the holy grail of online fashion,” she its own 3D virtual clothing technol- the concept of 3D virtual clothing. But unlike Zeekit it’s intended to biggest hurdles to wider adoption turn them off a brand for good stock before the items even arrive. who are unable to visit in-store now and
says. “We could allow customers to ogy in the autumn, the pandemic Giving customers the chance to try show the style, rather than the exact of AR technologies was the need for 150 in the future. If a retailer relies on one or
see themselves virtually dressed up has also brought with it a new raft on clothes virtually online creates fit. “It’s the colours, how the fab- customers to enter their key body As bricks-and-mortar stores two carriers to ship their entire volume,
57%
in any clothing item or combination of interest, says founder Yannis three opportunities to boost reve- ric moves on you as you swirl and dimensions into the site or to create begin to reopen, what can the potential for capacity failure is more
140
of items at the click of a button.” Konstantinidis. nues, according to Vizel. “It makes twist,” says Konstantinidis. a virtual avatar,” she says. we expect from the dynamic likely. And as we’ve seen, this carries a
Five years later and the technol- Could the demands of a global To use it customers can simply “However, COVID has presented between physical and digital? massive cost to retailers, both financially
ogy is being explored by the likes of health crisis finally push virtual and upload a selfie, input their height and shoppers with a set of very different 130 The reopening of stores is good and reputationally. Even if your custom-
ASOS, adidas and Bloomingdales. By augmented reality (VR/AR) tools into weight and then AI transposes their concerns around safety and distanc- for the economy, but due to ers don’t place additional volume today,
applying deep-learning algorithms the mainstream? face on to a body of more or less sim- ing in a traditional high street envi- would be more likely to shop with ongoing social-distancing measures, they very well might tomorrow. We
a retailer that makes the returns 120
and artificial intelligence (AI), Zeekit Fashion brands have dabbled with ilar size, he explains. They’re pro- ronment, and this may be the impe- the capacity of those stores will remain already had Christmas in May, so what’s
process easier
can digitise the 2D image of any gar- virtual technology for years. In 2018 vided with not only a static image, but tus many shoppers need to take the limited. And the patience of consumers the actual 2020 peak of November and
ment and break it down into 80,000 Burberry installed AR mirrors in two a moving video of the virtual result. leap into AR online fitting rooms.” 110 to queue will be tested. Standing out- December going to look like?
individual segments. This “map” is of its stores, which allowed customers It’s a function that could allow brands Given the economic impact of side in the June sunshine while on fur-
69%
then layered across the 2D image of a to pose and play with its iconic tartan to swap out white backgrounds for COVID-19 on the fashion industry, 100 lough is one thing, but it will become a For more information please visit
human model. It can, in other words, ribbon. In the same year, a pilot at a One of the biggest hurdles immersive scenes, showing their cus- cost and resource could still leave much less appealing prospect in the www.metapack.com
let customers try on an endless array Shanghai mall saw customers create to wider adoption of AR tomers wearing an outfit in different virtual fitting rooms a step too far
90
November rain. During the pandemic,
of 3D virtual clothing without ever virtual avatars on touchscreens at virtual environments. for some. But with the pandemic we’ve seen a retailer shift in terms of
leaving the house or without touch- concept fashion store Moda Polso. technologies was the need for “In that way we’re thinking of the forcing stores to recreate retail at state the ability to track an category. The very high growth of fast
ing a single piece of fabric.
Inconsequential a few months ago,
But investments in AR fitting and
styling technology “have largely to
customers to enter their key dressing room not just as a browsing
experience, but as part of personal-
a distance, there’s little doubt the
technology will suddenly hold very
order is one of their top three
considerations when buying
fashion has been offset, to some extent,
by massive growth in health and beauty,
the latter now looks like a crucial date been made to create interest body dimensions into the site ised content,” he adds. mainstream appeal. a product March April May June sport, electronics and toys. Their
You can also read
