This article was translated from our Spanish edition. Opinions expressed by Contractor the contributors are theirs.
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The COVID-19 pandemic has profoundly transformed many aspects of people’s lives: from the way we relate to loved ones to the way we study. One of the strongest changes we’ve seen in recent months has been the relentless conquest of e-commerce.
In this regard, the VTEX trade platform, marketplace and order management system (OMS) have 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 consumer habits constitutes in a particular way for a region like Latin America a great opportunity for companies, whatever their size or activity, to benefit from the advantages of electronic commerce and to support their service. in the implementation of technology. This resource is an essential tool for the growth and optimization of the operation, ”said Santiago Naranjo, President for Latin America of VTEX.
Businesses are undergoing an unprecedented transformation, driven primarily by the preferences that customers now have for digital channels, requiring businesses to pay close attention to the immediacy, convenience of the process, and the pricing benefits they offer. 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 industry:
1. The figure of the buyer and the consumer merge: A product of digital commerce, these players have now merged into a single identity, motivated in large part by the phenomenon that leads the user to make more and more online purchases of all types of products. SKU (Inventory management unit).
2. Amazon’s 3P effect: The growth of the model of this type of online store has increased the expectations of buyers for retailers and brands to offer the benefits of a wide variety of offers, at competitive prices and better business propositions.
3. User participation, where and how to involve them: With the consumer’s attention span shrinking and now shopping journeys are not always linear, brand advertising, more than ever, needs to tell a story quickly, concise and compelling to truly engage and engage users.
4. Proliferation of channels and markets’ Direct to consumer ‘ (DTC): New functionalities and technological platforms allow companies to collect, analyze and use customer data to improve their commercial offer and promote direct and effective customer participation.
5. The commercial approach to retail: Some small businesses have started to explore new strategic models in their operations. From analyzing the bottom line to planning offers and advertising campaigns, everything revolves around consumer segmentation and the ability to personalize and create customer loyalty models.
More than ever before, brand advertising needs to tell a story in a fast, concise and compelling way / Image: Depositphotos.com
6. Support from unconventional technological partners: There is a need to integrate new skills in the retail sector, creating opportunities for CPGs (mass consumer goods) to have new technologies and new partners that allow to sell and interact directly with consumers, in addition to launching different types of customer loyalty programs to develop the strengths of the business.
7. The resurgence of technology as a resource, beyond its service function: Companies have traditionally viewed information technology (IT) consulting organizations as mere 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’ve highlighted are dramatically changing the way consumers and shoppers navigate, search and buy products online. The next step now is to embrace not only technology, but also an increasingly digital approach to retail, to deliver real and tangible added value, ”said Santiago Naranjo.