Secteur Distribution and Retail Eurogroup Consulting
Being competitive, offering innovative client experiences, real time adaptation to new technology… The world of retail has gone into survival mode, the incumbents having to fight new comers’ (GAFAM mainly) aggressive market strategies.
Organisational transformation seems inevitable!
Evolving uses and consumer expectations
Consumers are turning to more sustainable and organic consumption practices: organic products have experienced an increase in sales of 20% in 2015-2016, 85% of consumers in France are prepared to pay up to 30% more for organic and traceable products*…
Direct availability and personalisation of answer to needs is key today, as 70% of clients expect an organisation’s website to offer generic support and a common issues resolution system for products.
Optimised prices are another imperative with 35% of total retail client respondents considering that price is the top criteria for purchase decision.
The use of multi purchasing channel, lastly, is important since 84% of French clients buy online, 22% go through t-commerce, 19% through m-commerce**.… These basic trends get stronger every year.
Client retention, personalisation, competitiveness, productivity, and quality ultimately have a great impact. Margins are answers, sometimes contradictory but inevitable, to these challenges.
The data revolution: a new phenomenon which impacts the retail back and front offices
The recent advent of data and Big Data disrupted marketing approaches and the client relationship:
- Improve and enhance the client understanding: tool digitisation enabled further connexion to alternative equipment, sparse data collection (purchase history, commercial website viewing, social media, …), the delivery of a personalised experience via a multi channel strategy and the anticipation of client needs
- Optimise points of sale: collect and analyse data to anticipate purchasing trends or decode market competition and configure the optimal point of sale
- Forecast market trends: trends and consumer behaviour predictions thanks to the analysis of mass internal and external data (from social media for instance)
- Reinforce competitiveness and the organisation's competitive edge: adapt offers and prices according to the short-term evolution of markets and competition
There is therefore a dual perspective: on the one hand, data represents a major renewal opportunity for marketing and client knowledge and on the other, most recent technologies speed up internal processes and disrupt the client relationships (AI) or increase product traceability (Blockchain).
Tomorrow’s logistics and purchasing practices are prepared today
Long seen as less flexible, complex and constrained on the entire production / transport / distribution chain, warehouse management is experiencing a revolution: robotisation, automation, smart platforms… New technologies and organisational transformations are integral parts of the modernisation of the supply chain. Their impacts are sizeable and varied, but all organisational processes are involved (store networks, procurement, marketing offers). Impacts on human resources and social relationships also have far-reaching consequences.
Tomorrow’s store: reconcile new concepts with the physical and emotional journey
The wider application of the omni channel client journey model is not a sign of the disappearance of points of sale, rather their reinvention through corner shops, best buy brand, concept stores, multi channel and digital options (click and collect, 3D printing…).
Recent studies demonstrate that clients’ loyalty to physical points of sale will prevail only thanks to the quality of the client - seller relationship.
* Source: Observatoire de la Consommation Responsable, 2017
** Source : DigitasLBi study across 17 countries, 2015
Eurogroup Consulting supports these retail transformations through its ability to integrate excellent skills and advanced technology, to understand, master and benefit from new uses, consumer behaviours, Big Data, and business line cultures. It does so according to the following intervention axes: