Technology has triggered an evolution of retail. The steady rise of eCommerce has equipped consumers with better tools to analyze each purchase - making them more judicious and less loyal. New digital savvy brands have seized market share across a range of product categories, using direct-to-consumer as a key channel. Social media and digital advertising have served as an enabler, making it easier to reach target demographics, drive viral trends, and build brands. Improved logistics have also helped, not only with direct-to-consumer business models but driving the success of eCommerce platforms like Amazon.
These factors have driven a steady, inexorable rise in eCommerce. Yet in-store sales still account for over 80% of total retail spend in the United States, demonstrating the need for omni channel strategies.
This evolving landscape could be seen as challenging for consumer packaged goods companies (CPGs). Yet the right technology can turn challenges into opportunities. This paper examines the core features shaping the future of retail, and the technology required to successfully traverse new market dynamics, specifically:
- The rise of the platform economy
- The importance of direct-to-consumer (D2C) as a key channel
- Why brick and mortar retailing is still relevant and necessitates an omni-channel approach
- How digital media has changed marketing dynamics