Five Key Trade Issues for 2017

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Olivier Founding manager of the Retail sector at Capgemini Consulting believes that distributors will have to face 5 major challenges. Moreover, according to him, the traditional signs will have to review and rethink their missions and reinject the content in the relationship with the customer, using digital tools for example.

The omnicanal, a reality in 2017

At present, 2 outlets out of 3 propose the Click & collect, this one becomes a must. In conjunction with the customer’s unique vision, it will be necessary to switch to a single view of the stock in real time. This will mean that this stock no longer belongs to a store or warehouse but to the first one who asks for it, no matter which channel it has used. The new distribution platforms called “full stores” and “dark stores” prove that the border between e-commerce and store is becoming less and less complete. We can take the example of Casino and Monoprix, but also Boulanger or Sephora.

Customization of Omnidal Customer Relationship

We can see a fundamental change in Retail for this year. Indeed, the pure players learn and imbibe Retail, as for the historical retailers, they learn the technology. The stores will still play a key role in sales, accounting for 80% of retail sales, compared with 92% currently. We can thus advise stores to re-invent and position themselves at the center of the omnican experience. The digital allows personalization of customer relations. In-store customization will be introduced in 2017 and will be based on omnican behaviors. We can talk about Baker, who showed the way with his new types of urban, omnican and connected stores. This can be related to what Rebecca Minkoff had shown in the United States last year.

Transformation of Organizations and Operations

The revolution in terms of steering retailers’ activities is already underway. The management of an activity by CA / m², a P & L per channel or a marketing by format no longer makes sense at the time of the omnicanal. These transformations have already been undertaken across the Atlantic and beyond. Awareness has already been made, by Auchan for example, so far, there is still another step to be taken: implementation. The phrase “Retail is detail” has never been so true.

Price war and new economic models

The digital accelerates the economic conjuncture phenomenon by being transparent and facilitating the comparison of prices. It also facilitates the development of services and delivery on the same day or in a few hours. From then on, the pure players will have to learn also to improve their re-entry of money by a better management of their margin. In short, the war of fixed costs against variable costs is only at its inception, and the search for and development of new solutions for the last mile can change everything.

From transactional to relational

Let us not forget that digital technology must be at the service of man, not the other way round. We can take as an example Nike, with the store of Soho. Nike focuses on the brand and the human: ubiquitous teams, listening, ready to help and test products. They embody the brand and are at the heart of the customer’s store experience. We can ask ourselves the question of cash hosts, representing up to a third of the size of a hypermarket: How will their role evolve tomorrow at Amazon Go?