From: Pavlos Tsulfaidis
Date: 12/22/2020
#1 - Premium private label
More and more consumers are looking for premium products. Unfortunately, people don't have the time to do the research for every product they buy, to do thorough research. This is where private label fills the gap.
Consumers end up buying not only the product itself, but also the promise of quality that comes with it. As a result, brands can achieve significantly higher margins, constant sales can be generated through this loyalty, and in the long term, marketing expenses are also marketing expenses are correspondingly lower. These effects pay off most in e-commerce.
The most successful brand strategies result from a deep understanding of the target consumer, his needs and desires. The Requirements relate to basic, more functional aspects such as taste, package size, price, etc. Desires are decision drivers based on aspirations or idealized states - think convenience, premiumization, or Aesthetics. In a market where most or all players already have all their needs met, it is these desires that often lead to purchasing decisions.
The catch-all approach of amazon
Amazon, of course, is the market leader and the one everyone is watching, especially since its acquisition of Whole Foods Market. So far, Amazon has pursued a three-pronged strategy to expand its brands.
Amazon Basics houses an ever-growing list of more than 2,000 products that are classified as traditional values, and in the the first half of 2017, generating more than $200 million in sales. For other categories, to which consumers have a more emotional attachment or have higher price or quality expectations, Amazon creates unique, category-specific Brands. In addition, the company offers products exclusively to members of its Prime service.
This flexible strategy enables broad reach and deep engagement. This is possible because Amazon is the Owns and controls the platform on which sales are made. However, the strategy also has its weaknesses: it offers no efficiencies across multiple categories and no way to create or participate in it.
#2 - Temporary retail stores
Pop-up stores (also known as temporary retail stores) are an effective way to supplement your e-commerce business. Pop-up stores are predicted to be the future of retail. CBRE, a global commercial Commercial Real Estate, estimates that temporary stores will exceed $50 billion in sales. Pop-up stores are attractive to consumers attractive because customers are already accustomed to buying items from temporary retail stores. That's because pop-up stores have been around for a long time.
Although pop-up stores are temporary, the goal is to leave a lasting impression on your potential customers and encourage them to shop with your business online. Establishing a temporary presence in the real world with a pop-up store is a valuable addition to your e-commerce business. Many years ago, household brands like Levi, Gucci and Samsung started setting up pop-up stores to boost their brand images and profits.
Levi's new pop-up previews the future of denim customization.
In response to consumer demand for customized products, Levi's is launching a 10-week pop-up store. The unique retail space will encourage customers to use the brand's new FLX laser printing system to design their dream jeans in a matter of minutes.
Although the process itself is nothing new, the Adidas Knit For You pop-up store in Berlin allowed customers to collaborate with designers to create a completely unique sweater.
- Peer-to-peer rental marketplaces such as HomeAway or Airbnb. These P2P marketplaces are easy to use and useful, as they gather hundreds of properties on one website. The owner of the platform charges fees for each transaction and additional fees from tenants.
- Selling products like Etsy or eBay. In this case, product sellers present their products through listings and sell them virtually for a fee. This type of peer-to-peer marketplace is one of the most popular because, with little effort, even the strangest items can be found and sold.
- Offer services or skills. With online portals such as Fiverr or Task Rabbit, you can quickly find people with the needed skills. The latter also sets up interviews and verifies the skills of an applicant, before he or she is given access to the platform.
- Money and Loans. These marketplaces refer to investing in loans or obtaining funding. Kickstarter and GoFundMe are well-known examples of this service. The main difference between them is that Kickstarter provides serves entrepreneurs and creative professionals such as artists, musicians, and technology enthusiasts. Meanwhile, GoFundMe is a Fundraising platform for education, treatment or disaster relief. Startups use it to raise money.
#7 - Customized products
Consumers increasingly expect customized products. Thanks to advances in digital and manufacturing technology, brands can now offer customers the ability to personalize or customize products online or in-store to personalize or customize them, and then purchase them quickly.The benefit of customization is that it further enhances the customer's user experience. Customers are called upon to become partners in the product development process. The better the user experience, the better the opportunity for conversions.
Currently, Nike is dominating the personalization and customization of products. The brand is experimenting in its flagship stores and at its partner retailers, with a focus on customizing in-store or online products. Nike has hit the ground running and is currently actively selling personalized products both online and offline.
#8 - Logistics
At the moment, all shippers are concerned about how to get their packages out the door, onto the truck and into the hands of their customers. With the focus on the fourth quarter, these companies should also be thinking about the 2021 thinking about what new impacts it will bring and what they are doing now to prepare for those impacts.
Not least because of the strong growth in e-commerce in 2020, which is expected to continue well into 2021, it is this is important for many reasons. Already in September 2020, e-commerce sales in the U.S. were up 43% year over year, after growing had grown 42% the previous month. This growth impacted manufacturers, distributors and retailers, many of whom were not prepared for the onslaught.
If you've spent the better part of 2020 getting over the pandemic, it's time to dust off your supply chains, logistics and transportation plans and make sure your fulfillment strategies align with your e-commerce goals for 2021.
#9 - Intelligent household assistants
Virtual assistants can help businesses become even more customer-centric and increase the goal of efficient purchasing.
Voice-controlled devices are no longer a novelty for Americans. They are beginning to cross borders and spread around the world. spread. The U.S. is the second-largest market for smart speakers after China. Having Google Assistant or Amazon Alexa at home, has become standard: They are convenient, user-friendly and simplify our routines. But they can do even more: voice-based personal assistants can work toward the goal of smart resource use by educating consumers and helping them to help them better manage their purchases.
It is predicted that 55% of U.S. broadband households will have a smart voice-based assistant by 2021. It is high time that companies embrace these devices, as they represent a new opportunity to engage customers and add Add important functionality to smart home systems.
#10 - Green consumption
Even Corona is influencing green lifestyle needs. Durability, sustainability and quality: the so-called. "ethical online shopping" combines the best of both worlds.
In light of the many problems associated with online shopping, it is even more important to ensure that consumption on the the couch does not cause additional environmental problems. Therefore, "Ethical Online Shopping" must apply to all purchases in the future.
It is expected that brands will increasingly shift to green consumption.
Many consumers admit to being influenced by environmental concerns when making purchasing decisions. The focus on environmental sustainability is a clear sign that online retailers need to increase their monitoring of compliance with environmentally friendly practices. Companies can do this by ensuring that a greener online sales environment is created by sourcing products only from Fair Trade organizations.
Another thing driving green consumption is the emergence of millennials as a robust group of shoppers. Members of this generation are interested in sophisticated eco-friendly products. This demand for environmentally friendly products is prompting e-commerce companies to adopt environmentally responsible practices.