Amazon's 3P effect and 7 other changes in people's consumption
Grow Your Business, Not Your Inbox
The COVID-19 pandemic has profoundly transformed many aspects of people's lives: from how we relate to our loved ones to how we study. One of the strongest changes we have seen these months was the inexorable conquest of electronic commerce.
In this regard, the commerce platform, marketplace and Order Management System (OMS) VTEX identified the changes within the consumer sector and its potential transformation is mainly due to the implementation of technology and online shopping.
“The transformation that is taking place in the habits of consumers, constitutes in a special way for a region like Latin America a great opportunity for companies, regardless of their size or activity, to take advantage of the benefits of electronic commerce and support their service in the technology implementation. This resource is a vital tool for the growth and optimization of the operation ”, said Santiago Naranjo, president for Latin America of VTEX.
Companies are undergoing an unprecedented transformation, driven mainly by the preferences that customers now have for digital channels, and this requires from businesses a special attention to immediacy, convenience in the process and the price benefits that they offer online shopping.
Here are the top eight trends in consumer behavior that are driving the creation of new growth opportunities for companies in the FMCG sector:
1. The figure of the buyer and the consumer merge: Product of digital commerce, these actors have now merged into a single identity, motivated to a great extent by the phenomenon that puts the user increasingly completing online purchases of any type of SKU (Stock Maintenance Unit).
2. The 3P effect of Amazon: The growth in the model of this type of online stores increased the expectations of buyers for retailers and brands to offer the benefits of a wide variety of offers, at competitive prices and better commercial proposals.
3. Participation of users, where and how to involve them: With the reduction of the consumer's attention span and as now the purchase routes are not always linear, brand advertising more than ever, must tell a story quickly, concise and compelling to really engage and engage users.
4. Proliferation of channels and markets ' Direct to Consumer' (DTC): The new functionalities and technological platforms allow companies to collect, analyze and take advantage of customer data to improve their commercial offer and encourage the direct and effective participation of customers.
5. The retail approach to business: Some small companies have begun to explore new strategic models in their businesses. From the analysis of the bottom line to the planning of offers and the advertising campaigns, everything revolves around the segmentation of the consumers and the ability to personalize and create models of customer loyalty.
Brand advertising more than ever must tell a story quickly, concisely and convincingly / Image: Depositphotos.com
6. The support of non-conventional technological partners: It is necessary to incorporate new skills in the retail sector, creating opportunities for CPGs (mass consumer goods) to have new technologies and partners that allow to sell and interact directly with consumers, in addition to launching different types of customer loyalty programs to develop the strongest points of the trade.
7. The resurgence of technology as a resource, beyond its function as a service: Companies have traditionally viewed Information Technology (IT) consulting organizations as simply providers of services, technical support and software; however, today their contribution has become fundamental, with a more central role to play.
8. The limited ability to measure success: The modern consumer is not used to buying only through easily measurable channels. This means that brands that do not adopt innovative systems or business models have to settle for reduced visibility, even 50% of sales, that is, only what the physical channel offers.
“The eight trends we have highlighted are radically changing the way consumers and shoppers browse, search and buy products online . The next step now is to adopt not only technology, but also an increasingly digital approach to retail, to offer real and tangible added value ”, highlights Santiago Naranjo.