Contrary to what some might suggest, e-commerce enriches physical commerce and the effect goes both ways, Gino Van Ossel claims. The marketing professor at Vlerick explains: “E-commerce has become much more sophisticated”. The Omnichannel Congress, which takes place on 24 March, demonstrates this with interesting cases such as Exki, C&A, De Gele Flamingo and Ochama .
A new era has emerged
E-commerce went through the roof during the Covid pandemic, and it has been an actual wake-up call for the entire retail sector. Even in food, the largest retail industry, the online revolution happened. “At Albert Heijn in the Netherlands, 10 % of sales now come from online. That will also happen in Belgium”, says Van Ossel, who will host the RetailDetail Omnichannel Congress on 24 March.
E-commerce has become much more sophisticated: companies are going digital, making them genuinely omnichannel. The Omnichannel Congress will show how everyone, from large international e-commerce platforms to independent retailers and even foodservice players, is digitally transforming in an inspiring way. “There is more maturity today. Growth may be slowing down, but there is certainly no less innovation. The Omnichannel Congress will certainly broaden everyone’s horizons.”
The best example is perhaps Exki: the lunch restaurant chain was forced to transform itself due to people working from home. At the congress, the chain will showcase its connected fridge Exki Fridge, a vending machine that embraces digitisation and omnichannel within an analogue industry. C&A was one of the first big chains to have a webshop, but its breakthrough was a long time coming. Now the retailer wants to generate half of its turnover from online sales. Chinese giant JD.com, on the other hand, is completely going against the home delivery trend by investing in robotised pick-up points through Ochama. Meanwhile, De Gele Flamingo proves how an independent entrepreneur can develop an international omnichannel proposition.
Starting from one’s strengths
The marketing professor noticed that retailers always start from their own foundation: an online player continues to dominate e-commerce, physical chains focus on customer interaction and the shopping experience. When Zalando opens outlet stores to cope with its many returns and enters into partnerships with independent boutiques, it does so based on its experience as an online platform. Ikea is rolling out smaller planning studios, where customers come to design their kitchen only to have it delivered to their homes later. “These are developments that will certainly be intensified.”
After all, physical stores are increasingly seen as assets throughout the customer journey. What began with the question of how many outlets and square metres of shop floor a retailer needs, is now being broadened: how can we get closer to the consumer? Therefore, a physical point is part of the answer, and its assets (service and experience) are also spread via social media and online.
At the same time, consolidation in e-commerce is continuing: Bol.com is becoming increasingly more dominant thanks to its marketplace, but remains primarily an online player. In China, they have been committed to ‘new retail’ for years, while Amazon continues to open physical stores at a steady pace. “Stores clearly have their role, although the majority of sales continue to come from e-commerce. That will not change.”
The more e-commerce, the more sustainable
Since the coronavirus pandemic, the entire retail industry has moved much further in thinking about things like bicycle couriers, robotisation and pick-up points. Also, cities and municipalities are increasingly active and ask themselves what to do with express couriers and the increased number of delivery vans. The issue of sustainability arises simultaneously, although this is actually “a false discussion”, Van Ossel believes: “Paradoxically, more e-commerce leads to less pollution. The more e-commerce, the more efficient it becomes.”
Studies show that sustainable e-commerce is feasible and that this trend has already begun. Bubble wrap is disappearing from packaging, and retailers increasingly use made-to-measure packaging. “It is a symbolic example, but Coolblue already delivers small packages in a paper envelope. Delivered with electric bikes, by the way.”
Problems solve themselves
Therefore, many issues are solving themselves: as the new labour agreement in Belgium now allows, e-commerce sees more talk of evening shifts rather than night shifts. Van Ossel: “At Bol.com, most orders come in before 10 pm, so most shifts end at 2 am. The expectation is that this type of labour will be automated largely; look at Ochama’s brand new automated warehouse. It’s just a matter of time before you see it everywhere, as soon as it becomes efficient and affordable.”
It is true, of course, that we all have to make sure that things are done correctly, without illegal employment, unfair contracts, child labour, etc. “At least at the European level, there have to be explicit agreements. But that will happen. Many are already doing things right.
Want to learn more from those who do it well? On 24 March, the RetailDetail Omnichannel & E-Commerce Congress will take place in Antwerp. The congress features fashion retailer C&A, healthy restaurant chain EXKi and Ochama, the robotised omnichannel concept by Chinese internet giant JD.com, to name a few. More names will be announced shortly. You can find all the information and order your tickets through this link. Do not wait too long: spaces are limited.
