Omnichannel strategy: transforming retail

For his part, the consumer is increasingly adapting to non-traditional solutions, leaving behind his passive role where he accepted everything that was offered and is involved in the process until the end. In this sense, for brands, surfing the wave of transformation is key to carrying out a sustainable business.

Currently,mass consumption and retail are in constant evolutionand transformation thanks to the emergence of new technologies that have led to the diversification of channels both for marketing aimed at end consumers and for marketing or distribution throughout the chain.

Although the pandemic has hyper-accelerated the adoption of electronic commerce, it has not eliminated the need to continue having physical stores for marketing, service and last mile logistics management. Consumers are looking for an in-person experience in which they can play with all their senses (not just sight and hearing), be able to choose to interact with brands through different channels and receive personalized attention.

Stores are an integral part of an ecosystem that aims to add value in brand presence, product experimentation through the senses and testing, assisted marketing, service, product pick-up and return points, etc.

There are many cases in whichdigital business models are being complemented with physical stores and vice versaand others in which brands are integrating vertically towards the end consumer and stores play a main role.

One of the most important trends is omnichannel, which refers to the ability of a company to interact with its customers through multiple channels and offer a consistent and personalized shopping experience in each of them. This means that the consumer can buy a product in a physical store, on an online platform or through a mobile phone, and receive the same attention and service in all cases.

Omnichannel is becoming a global trend and is increasingly present in mass consumption. This is because consumers are looking for a seamless shopping experience, in which they can interact with brands through different channels and receive personalized attention. Companies that adopt this strategy have a greater opportunity to retain their customers and attract new consumers.

This trend involvesthe adoption of new promotion, marketing and distribution alternatives. Companies are exploring different options to reach consumers, such as using influencers and micro-influencers on social networks, implementing loyalty programs and participating in online marketplaces.

In terms of marketing and distribution, brands are diversifying their sales channels to reach a broader audience. This includes their own or franchised physical channels, remote channels with direct assistance, direct e-commerce or through marketplaces. Increasingly, technology such as chatbots and artificial intelligence is being added to improve customer service and provide a more personalized shopping experience.

For mass consumption companies, the distributor can be a key actor in carrying out truly effective commercial strategies. The distributor is another relevant channelin the go to marketof brands, and obviously plays a relevant role as an alternative todirect distribution for the “traditional channel”. Distributor sales information is another relevant source to understand how products are performing in the market and refine multi-channel positioning, product and trade marketing strategies and ensure the best coverage, penetration and cross-selling.

Another important aspect is effective integration with payment methods. Consumers are looking for fast and secure payment options, and companies are adopting new alternatives, such as mobile payments and electronic wallets. In addition, integration with new logistics operators and integration platforms is making it possible to optimize the supply chain and improve distribution efficiency.

Also in the case of B2B models, strong technology integration and adoption platforms are being developed, such as EDI+ to improve communication and collaboration between companies.

Establishing marketing plans and channels, pricing and promotion policies, and managing the sales force constitute the main challenge of commercial management. But also, placing the right products in the right place, at the right time and in the desired conditions, seeking to maximize the profitability of the company.

For this reason, it is key to optimize and synchronize the entire ecosystem and not just marketing. In this sense, effective credit management, adequate commercial policies, an efficient backoffice, an optimized supply chain, appropriate financial resources and the innovation and sustenance provided by three fundamental pillars are essential: human talent, information technology and data management.

Obtaining data, its custody and its capitalization to generate new processes in a concept of “data driven company” are increasingly relevant themes to deeply understand who our client is, how they act, what they need and create the most effective experience possible, which ensures commercial success. In this sense, the information exchange agreements with the commercial ecosystem become a key piece when evaluating, agreeing and managing with the different stakeholders, having an increasingly important weight when developing sustainable and valuable relationships for all parties.

Paradigma Sociedad de Soluciones is a business, operational efficiency, technology and people consultancy that can provide a wide range of innovative and personalized solutions to the specific needs of the mass consumption and retail sector, allowing companies to improve their results, customer experience, operational efficiency and obtain a competitive advantage. He has worked with various leading companies in the market. Some of the most notable experiences are described below.

Paradigma accompanied a leading electronics company in Argentina in the launch of a new channel of physical stores for one of its most prominent brands, participating in the design of the new corporate, organizational and operational model and in the management of the entire channel development program until the launch of the operation in three stores. This project also included the selection and implementation of a new point of sale system.

Another case, was the development of the business strategy for a company focused on Deco and Home that targets the end consumer and that has its own physical retail channel, its digital channels and a network of franchisees. The strategy aimed to achieve growth and improved profitability by promoting its internalization, complementation with new product lines from international brands, new product categories and better penetration in the territories currently attacked.

It is alsoworking on multiple other initiatives such as, for example, developing new formats and channels for a wholesale supermarket, optimizing working capital and the efficiency of distribution centers in a food company, optimizing service models, implementing chatbot and artificial intelligence in several financial retail companies and cultural change in industrial areas in a beverage company.

In conclusion, mass consumption and retail are constantly evolving, and the adoption of new technologies is allowing the diversification of channels and an improvement in the purchasing experience for consumers. The demand for Paradigma is high in omnichannel issues, including the adoption of new promotion, marketing and distribution alternatives, effective integration with payment methods and new logistics operators. Omnichannel is a trend that is transforming the market and that companies must take into account to remain competitive.