Strength in (Our) Numbers
size of the average click and collect basket vs. brick-and-mortar equivalent
thousand product assortment overlap between Amazon and Best Buy
of digital product searches start on Amazon
Meet Them Everywhere They Are
Whether manufacturers building direct relationships with consumers or retailers evolving to be omnichannel, there’s a recognition that today’s consumers expect shopping experiences to fit with their needs and lifestyles.
As great products have become available in more channels, the need to be found easily has increased
As the shopper journey becomes less linear, the multifaceted role of distribution and merchandising continues to grow. This disruption is only going to get worse as consumers realize that they really can, in fact, have it their way.
Some of the most iconic retailers and brands are currently struggling to maintain relevance (or sadly have disappeared from the retail landscape), and emerging competition has taken on increased relevance. Whether a start-up manufacturer opting to launch as direct-to-consumer, a retailer increasing its emphasis on its private label offering, or a company trying to both at the same time, the competitive landscape is changing and companies are being forced to adapt in sometimes uncomfortable ways.
The rise of the omnichannel consumer makes the changing landscape even more challenging. Three-quarters of consumers start their digital product searches with an online retailer, including 58% who start at Amazon.com.
That makes optimizing the digital shelf arguably the single most important element of a manufacturer’s online brand presence, and maybe the most important element overall (as many brick-and-mortar purchases start with an online search). And the digital shelf has become one of the most dynamic elements of the marketing mix, with human and algorithmic changes occurring seemingly by the minute.
And with the democratization of brands, the need for brand protection becomes more pronounced. It has become easier than ever for sellers to take actions that, while they may drive short-term sales, create a risk to brand equity for manufacturers. The idea of promoting versus protecting brands becomes a delicate balancing act.
In our on-demand economy, with 24/7/365 product availability and the ability to make purchases from virtually anywhere, the need to rethink market intelligence becomes more vital than ever – to meet consumers where they are and to create an ecosystem in which the entire supply chain can be successful.