The ‘all under one roof’ appeal of brick-and-mortar retail is being eroded by online channel growth, and while the physical store is far dead – it needs to be reinvented in order to remain relevant.
eCommerce is dramatically altering the retail value chain
eCommerce and digital ecosystems are disrupting global retail faster than ever before – shaping consumer demand, changing the way people shop and dramatically altering the role of retailers, brand owners, distributors and wholesalers in the retail value chain.
In order to thrive in this context with new competitors and new business models, retailers and brand owners need to create a retail value chain that leverages multiple different business models.
The shift towards blended business models
Many leading retailers are adopting a “blended” approach to their operating models in order to deliver against the shopper’s needs, as well as to optimise the economics of multiple points of buying.
According to Planet Retail, as channels are increasingly blurred, strategies that segment the market by fulfilment model or consumer trip occasions will become more relevant than segmentation by store type or physical/digital. examples of this segmentation approach are below.
“As ecommerce business models continue to evolve, retailers and brands should rethink their traditional channel definitions and consider new segmentation strategies that address the evolution of seamless retail.” – Planet Retail
The top eCommerce operators are combining tools and platforms to create expansive digital ecosystems, through these blended business models, which ultimately boost consumer engagement, increase share of wallet and time spent on the platform.
If you’d like to find out more about how the Smollan eCommerce offering can assist you in building and leveraging your brand’s digital ecosystem, get in touch.