The Amazon Effect and the Survival of the Fittest
The retail landscape is undergoing a dramatic transformation, signaling the start of the analytics arms race. The conventional weapons of the past (i.e., syndicated data, targeted loyalty mailings, etc.) are simply not going to be as effective in this new battle against Amazon and new, non-conventional brick-and-mortar formats. For convenience, grocery, and discount, fresh food offerings and in-store experiences are becoming a core differentiator as the center store moves online.
On one side of the spectrum is Amazon, who is everywhere now with a combination of online and physical stores. They have led the rise of e-commerce, creating a disruptive and highly convenient shopping empire by engaging shoppers with personalized experiences like no other retailer can. AmazonFresh was launched to reshape the $800 billion food industry, and was designed to compete with grocers and mass merchants such as Walmart and Target. With their massive loyal Prime customer base, Alexa, drones, Echo and now an employee-free concept store called AmazonGo, it’s nearly impossible to tell where they will move next? With the purchase of Whole Foods, Amazon’s largest acquisition ever, they delivered their most significant threat to the food industry. Amazon will deliver marketing relevancy and personalization integrated with sophisticated pricing and personalization algorithms.
On the other front, the emergence of dollar stores and hard discounters which rely on aggressive pricing strategies has created loyalty through value. These retailers are asking brands to deliver absolute net lowest cost, which is passed to consumers alongside a no-frills retail experiences.
To compete in this new world, it’s more important than ever that retailers adopt a data-first, analytics-centric approach across the board, from supply chain, to store, to online. Until retailers offer a seamless, convenient, and compelling shopping experiences, they will be behind.
SwiftIQ brings this new foundation to help retailers, brands and suppliers transform their retail execution through software that powers decision automation, retail localization and vendor collaboration to create efficiencies and great customer experiences in-store and online. Our Platform empowers retailers to maximize the value of their data through its Retail Execution Cloud and artificial intelligence applications, which process hundreds of billions of records of granular transaction, customer, and shipment data to drive revenue profitably.