It is no news shoppers are becoming more invested in and aware of the purchasing process. Actually, in the near future, we will probably replace the word “retail” with “consumer commerce businesses” to emphasise this evolution. In this context, there are some business models that will definitely be the frontrunners:
1) Platform-based businesses – These businesses are increasingly dominating the current channels and even take a broader approach to target both B2B and B2C offerings.
2) Multinational retailers – Large multinational players will transform themselves into platform businesses and are already growing their capabilities through mergers and acquisitions and new market entry.
3) National heroes – These traditional brands usually have secured a loyal customer base and their strategy depends on leveraging loyalty programs to meet customer needs. To enhance their positioning onwards they will also need to focus on creating partnerships.
4) Value-based retailers – Discounters have been one of the fastest growing physical formats over the last years. Yet they must adapt to the new digital world to maintain this trend.
5) Direct-to-consumer commerce – In some cases, brands are building their own capabilities to deliver this proposition, or are buying this capability and leveraging platform businesses in order to bypass traditional retailers and gain additional margins.
6) Category specialists – Category specialists offer unique and focused products and services targeted towards a specific retail category or customer profile.
7) Independents – They have the unique ability to directly gather and respond to changing community needs. Independent local retailers are also re-emerging as viable players, often leveraging ecommerce as their core strategy.
Which of these seven types identifies your business the most? Are you ready to face the upcoming challenges? Technology well played will definitely have a great impact, do not underestimate its power!
