By Nyka Miglani, Head of Strategy at Liquid Retail
The evolution of shopping has been extremely rapid, to say the least. It was only less than a decade ago that eCommerce started to emerge as a new shopping channel, especially in the GCC region. And as we all know, Covid catapulted it to the next level. While the same growth story (or spurt) of 2020 eCommerce has not been seen in the years following the pandemic, shopping behavior has certainly changed forever. We are now officially in the era of ‘Everywhere Commerce’.
I’m often asked for predictions on eCommerce trends for the new year at the end of the last quarter, and while it is a separate channel from offline retail, shoppers don’t necessarily or deliberately make the distinction anymore. Are they aware that they are shopping online while browsing on an eRetailer site? Yes, absolutely. However, recent studies reveal that the average shopper is using 5.3 channels. And new data from a study carried out by Google CEE and IPSOS found that over 80% of survey respondents opted to research online and purchase offline or research offline and purchase online, with only 11% of consumers treated as strictly ‘online customers’ and 12% earmarked as strictly ‘offline consumers’. The fact that we can now shop anytime and anywhere, has blurred these formerly distinct shopping missions into anytime, anywhere – everywhere commerce. In addition to offline and online retail, predictions should also be about overall commerce. Unified commerce. Everywhere commerce.
We now have eCommerce, mCommerce, qCommerce, hyper-local commerce, social commerce, offline commerce (still known as in-store shopping), physical, digital, phygital…you get the drift. What’s interesting to note is that physical retail activities are still referred to as ‘shopping’, whereas digital retail activities become ‘commerce’. The act of shopping is more about browsing and discovery whereas the act of buying is commerce. And today, shoppers can become buyers anywhere. Commerce has become as pervasive as the internet and mobile phones themselves. So, what do brands and retailers need to be aware of and where is this multi or omnichannel world of shopping headed?
Alignment of Commerce Ecosystems
What this really means is that no matter where the shoppers are, they should encounter the same or similar brand experience, across multiple platforms. While a physical activation experience cannot be completely replicated online, the essence or idea of a digital one should remain the same. Shoppers should feel like they are connected to and understand the brand consistently, in a platform-agnostic manner. Different functionalities or solutions of platforms across the commerce ecosystem should be leveraged and utilized consistently, so brands (and shoppers) can benefit from everything each platform can offer.
Online Hyper-personalization & Convenience vs Offline Appeal
While commerce is becoming more and more unified, brands must be cognizant of channel differences in order to tailor retail strategies accordingly, so that the most cohesive experience can be achieved. As penetration and prevalence of AR and AI continue, brands should be geared up to deliver personalization to shoppers online, while still engaging them offline. For the latter group, offline shopping is most likely a recreational activity or this group just prefers the touch-and-feel experience, while the former enjoys the convenience of online shopping, apart from deal hunting! It should nonetheless feel seamless, even though in reality, it’s not. Shoppers are in offline or digital channels for different reasons but still expect the same experience, association, and connection, especially from their loved brands. It will be about leveraging customer data and behavior to customize shopping experiences, implementing targeted marketing campaigns, delivering personalized recommendations, and tailoring content to engage shoppers to improve their overall satisfaction.
Efficiency. Efficiency. Efficiency.
That’s the name of this game. To truly deliver on ‘Everywhere Commerce’, efficiency must be injected into and across the entire value chain. Shoppers don’t really care about what is transpiring behind the scenes – only the end result matters and they are increasingly getting used to instant gratification in most aspects of life, and that includes shopping. Using data to predict behavior and buying patterns to enable personalization in communication and even product development & rewards, tracking stock and ensuring availability, offering myriad flexible payment options, timely fulfillment, and smooth exchange & returns processes will be the key to winning. This is where AI is likely to play a crucial role. Never before has technology been this advanced (and expeditiously developing) to make this a reality.
Ubiquitous buying is going to make commerce progressively more enjoyable for shoppers but also more challenging and stressful for brands & retailers alike. Anticipating needs & possibilities early on and delivering on these adeptly, will make delivering on ‘Everywhere Commerce’ less painful and most certainly more rewarding.
