Embracing the Consumerization Imperative
(Video Highlights Have Been Added)
Consumerization - the talk of the town surrounding manufacturers and retailers alike. From avant-garde chatbots, seamless payment solutions, to last mile delivery excellence, targeted at sweetening the shopping experience. Businesses are jumping on the technology bandwagon to differentiate their offerings in the midst of a dramatic shift in the retail industry, with omnichannel retailing, ecommerce and personalization leading the way.
Globally, ecommerce has fundamentally disrupted where people shop. It is providing more people with easier access to more products than ever before, across both developed and developing markets. According to 2017 estimates based on Nielsen Retail Measurement Services, Nielsen Consumer Panel Services, Nielsen E-Commerce Measurement, and leading industry sources, Global online sales of FMCG products are growing five times faster (22%) than both offline FMCG sales (4%) and GDP (3%).
Consumers today demand niche brands and personally curated shopping experiences accompanied by relevant marketing. Anything that does not qualify as such, is simply ignored. These insights were brought forth in the Second Annual Edition of the Nielsen Singapore, Retail Summit 2018.
Data-Driven Marketing, reaching the consumer at the place, at right time, on the right channel, takes the limelight against the backdrop of the evolving retail landscape.
Similarly, Big data and Small data need to be aggregated and analyzed concurrently, to tacke challenges like improving customer conversion rates, personalizing campaigns, predicting and avoiding customer churn, and lowering customer acquisition costs.
Optimizing for the omnichannel world is almost synonymous with success for brands. Consumers see little difference between online and offline stores—only the trade offs in convenience. Each store model from local to online will need to borrow the best elements from other channels to create different, complementary experiences.
When businesses bring all of these elements together, they’ll be able to deliver more personalized omnichannel shopping experiences for consumers. Combining networks of physical stores and e-commerce fulfillment will provide infinite, yet highly relevant product assortments and offerings.