Today's consumer packaged goods companies are facing a winner-take-all world in which about half the sales growth - more in certain categories and markets - is coming from digital channels. Companies have to earn their online market positions with new approaches and skills tailored to digital sales, says a report released by The Boston Consulting Group and the Grocery Manufacturers Association.
Analyst Insight: The impact of the omnichannel revolution is being felt across every element of business today, including transportation and distribution, which can impact network planning. Customers today are more connected, more informed, and more demanding than ever before, and as a consequence, firms are forced to reevaluate their fulfillment strategies to meet ever-increasing demand for fast, accurate, and low-cost delivery of product to the customer. - John Santagate, Research Manager, IDC
Analyst Insight: With the consumer's hands firmly placed on the steering wheel, omnichannel retailing is driving the retail industry forward with record-breaking speed. Item-level RFID is fueling the journey by providing retailers with real-time inventory visibility, rich data insights, and a means for better trading partner collaboration - allowing for more efficient supply chain operations and ultimately, an enhanced customer experience. - Melanie Nuce, Vice President of Apparel and General Merchandise, GS1 US
Analyst Insight: Retail continues its massive digital evolution; we no longer should look at e-commerce as a separate activity for retailers. Consumers are only concerned about commerce. The lines between different retail channels have blurred, consumers expect retailers to service their demands and needs regardless of which path they decide to leverage with the retailers. Retailers' supply chains must keep pace with these digital changes. -- Guy F. Courtin, Vice President & Principal Analyst, Constellation Research
Only 18 percent of CEOs say they have eliminated operational silos and are delivering seamless omnichannel shopping experiences for their customers. This means that the majority of retailers surveyed are still operating in silos, which is taking a toll on retailers' profitability and ability to create a seamless shopping experience for customers.
Analyst Insight: For online customers, the buy button is easy; everything behind that is complex. Eighty percent of omnichannel strategy is about inventory strategy. It comes down to making intelligent inventory allocation decisions across the network and building an infrastructure flexible enough to quickly realign inventory to meet customers where they want. The key to omnichannel success is offering the customer multiple options and incentivizing the profitable flows. - Jason Denmon, Apparel Industry Leader, Fortna Inc.
Retail CEOs say internal silos are holding back omnichannel success. In fact, retailers without these operational barriers are more positive about achieving profitability, according to a new report.
Mobile is driving the shopping experience both in stores and online. Roughly 73 percent of all online buyers are using a mobile device to shop online, and 21 percent are using mobile devices to help them shop in stores, according to Bizrate Insights, a division of Connexity.
Digital services are now expected as standard by consumers, with retailers needing to adapt or risk their losing business altogether, according to a report from Kibo, a cloud-based omnichannel platform.
Kroger is set to offer a click-and-collection option at 10 Michigan stores by the end of 2016. ClickList, the brand's e-grocery service with curbside pickup, launched at one store in December and expanded to a second store this week.