Everyone is talking about the retail apocalypse.
But the massive change in the industry is not so much the end as it is a reinvention of the retail model.
The rapid growth of marketplaces—such as Amazon, Alibaba, Instagram commerce, click and collect models, and food delivery ecosystems—are changing how people buy and consume products and services. Expecting convenience and immediate gratification, customers are turning to marketplaces to get what they want, when they want it. At the same time, retailers are turning to them to expand assortment and reach, launch new products faster, and improve profitability—all at less cost. With the global e-commerce market expected to be worth $24.3 trillion by 2025, marketplaces are already the next wave of retail growth.
Be your own superhero
For many years, the dynamic between manufacturers and retailers went largely unchanged. The status quo ruled. Those days are over with the rise of digital marketplaces. Fast-moving changes in the retail model have caught up with manufacturers—and they must transform. And fast.
Most companies have responded by managing every marketplace as a standalone channel, delivering basic content to each one, and crafting brand experiences based on gut instinct (or readily available content). But superhero players will take a holistic approach. They will transform their organization to manage across marketplaces with cross-functional teams, tailor content to differentiate products and brands, use data-driven experimentation and automation to optimize performance at scale, and tap into these marketplaces for insights to capitalize on new opportunities for growth. This is how manufacturers can harness their superpowers for superior performance in the next wave of brand experiences.