Price Points by Omnia Retail

There is a reason a retailer’s shipping or delivery method is called “the last mile”. It’s easily one of the most challenging and complicated parts of the logistical and supply chain process - and one of the most...

There is a reason a retailer’s shipping or delivery method is called “the last mile”. It’s easily one of the most challenging and complicated parts of the logistical and supply chain process - and one of the most expensive. The Millenial and Gen Z age groups are currently the largest living generations alive today, and by 2029, they will make up 72% of the world’s workforce. This makes them the number one focus group for retail leaders spanning the globe. However, people from all generations and age groups have, at some point, shopped online and experienced the various delivery and shipping methods on offer. Now that consumers are used to Amazon’s industry-setting standard of same-day delivery and even two-hour delivery in over 2,000 US locations, how willing are shoppers to pay more for fast delivery? How has delivery changed the relationship between consumers and retailers? What could we see take place in the realm of delivery advancements and technology? Will consumers pay more to get faster shipping methods? A 2021 report conducted by Omnitracs on consumer behaviour found that 65% of US shoppers are willing to spend more money to receive faster, more reliable delivery. There are three main factors that affect a consumer’s decision when choosing between speed vs cost: Their age, the urgency of the delivery and the total cost including delivery. The urgency of the purchase may involve shoppers looking to buy last-minute birthday or festive season gifts or a desirable item that the shopper has been eyeing out for some time. The total cost includes the cost of all items plus delivery. However, it isn’t just the concluding number - it’s also about the cost of delivery in relation to the cost of the item. For example, if same-day delivery is €10 on an item that only costs €30, consumers will have to weigh out if this additional cost is worth it. What’s notable about the total cost factor is that it is dependent on the first factor: Age. Statista surveyed consumers at the end of 2021 and found that depending on your age group, you’re likely to spend a certain percentage of the total order value to get faster delivery. Gen Zer’s would pay approximately 5% of the order value, while Boomers (57 - 75) would only pay 2.2%. For example, if an order totaled €100, then Gen Z shoppers are willing to pay €5 and Boomers would pay just over €2. How delivery is changing the relationship between shopper and retailer Before the e-commerce boom, when it came to getting the goods, consumers did not have a power majority. Shoppers had to physically go to the store to purchase goods, which were determined by the shop's own trading hours. In other words, retailers didn’t have to move an inch to get the consumer to come to them. Today, as e-commerce dominates global shopping with desktop web shops and mobile apps, the relationship dynamic has flipped 180 degrees: The consumer has forced the retailer to come to their homes, working shopping into their personal schedules when it suits them, or simply when they’re feeling snackish or inspired. In China alone, revenue for online retail achieved a world-first when it surpassed brick-and-mortar revenue for the first time, accounting for 52.1%. Furthermore, by the end of 2021, 54% of global sales from shopping online came from mobile apps, showing just how much the consumer has changed in the last two decades. So, with the consumer-retailer relationship evolving in such a short amount of time, retailers - from grocers to home furniture - have had to revolutionise their entire logistics and supply chains model to meet the demands of the modern consumer. When the concept of “delivery to your door” first came on the scene, consumers dealt with 3-4 day wait times, wrong or unfulfilled orders, and returns were a nightmare. However, because consumers were enjoying the convenience of home delivery so much, shoppers did not notice the mishaps and longer waiting periods for deliveries because they had nothing else to compare it to. In 2022, with next-day and same-day delivery being the norm, as well as free shipping options and a more seamless returns system, it is almost inconceivable that consumers ever patiently waited almost a full work week to receive their order. But as delivery options expanded and became more personalised, the demands of consumers grew larger. It was no longer acceptable for a retailer to not offer tracking information on a parcel, omnichannel delivery and/or pick-up options, a returns policy that benefited the consumer, and other features. Having convenience, choice, speed and customization became the crux of the choice consumers had when choosing a retailer to shop from. Because shopping from the comfort of your home not only became the norm but the law in many countries during the height of the Covid-19 pandemic, consumer behaviour and expectations shaped how retailers would survive or thrive; which has set the tone for the consumer-retailer relationship in 2022 and beyond. According to a Shopify report entitled “Future of Commerce”, 75% of consumers said that free shipping had a “very significant influence” and 60% said same-day or next-day delivery had a “significant influence” on their decision to purchase. This ultimately shows the significant power shift between the consumer and the retailer. To put it bluntly, the consumer is saying, “Show me some options I like or I’m going somewhere else.” And, in an overwhelmingly saturated and competitive market, they can. How a customer experiences delivery, either online or offline, is viewed as an extension of the retailer and is part of the personal review a customer may have when deciding when or if to shop from a particular retailer again. The same aforementioned report conducted by Shopify, which includes data from millions of Shopify stores around the world, also concludes that 74% of consumers value transparency and clarity when it comes to a store’s delivery/shipping costs and policy. A further 68% would prefer free returns and an estimated delivery time. A great way to handle this is to provide the speed, method, ship time and cost for all of your delivery options. And, notice we said delivery options because in 2022, consumers want choice just as much as they want convenience. Talk to one of our consultants about dynamic pricing. Contact us Delivery trends today and going forward Other than next-day, same-day and two-hour delivery, retailers are finding ways to utilise their brick-and-mortar stores as well as their online channels. Click-and-collect and BOPIS Because many brands and retailers have an omnichannel business model, delivery options may include click-and-collect, which is also known as BOPIS (buy online, pick up in-store) or ROPIS (reserve online, pick up in-store). These are ideal for shoppers who have ordered groceries or home goods while at work and plan on picking them up on the way home. Another new delivery method is curbside pick-up, which sees a store employee hand out pre-ordered parcels on the curb to increase convenience for shoppers and turn-around time for orders. These are all in addition to home delivery. Although consumers may not necessarily go for the option that sees them having to jump in their car, just having the option is pleasing to them. Click-and-collect may also refer to a shopper visiting the warehouse for collection as to avoid the wait time for delivery, however, this option needs to be selected before purchase so that the supply chain isn’t taken by surprise. However, the BOPIS method isn’t just a strategy to make shopping more seamless for consumers; it is also a way of increasing foot traffic. The Wall Street Journal found that 50% of shoppers opt for BOPIS and 45% of shoppers ultimately buy something else while in store. This successfully blends the demand for omnichannel shipping/delivery methods, and increases the retailer’s sales per BOPIS order. The future of delivery Consolidation after fast digitalisation is taking place at an alarmingly speedy rate, turning online stores into marketplaces into e-commerce conglomerates. There are many benefits to consolidation for big players, however, smaller businesses will need to seriously weigh out the pros and cons in the face of the company’s ethos, mission statement and long-term goals.

Mergers, acquisitions and consolidation: Three words the average consumer would expect to only hear in the sky-high buildings of the Central Business District (CBD). However, these strategic processes are more a part of...

Mergers, acquisitions and consolidation: Three words the average consumer would expect to only hear in the sky-high buildings of the Central Business District (CBD). However, these strategic processes are more a part of the everyday consumer’s life than they think. By simply opening their Zalando or Amazon app to browse anything from electronics to swimwear to makeup, shoppers in the digital age and their money are at the very core of e-commerce consolidation - a trend that’s seen exponential growth in the last few years. What are some of the motives and developments behind consolidation? How are payment apps and systems becoming part of the big consolidation? And, is Amazon Marketplace a good choice for smaller businesses? We take a look at answering these questions as consolidation climbs the ranks at e-commerce’s biggest move in 2022 and beyond. eWallets: A consolidation trend that’s an end-to-end strategy The world of retail is always changing, and with the Covid-19 pandemic slowing down, it is astounding to look back at the development of e-commerce, marketplaces, mobile commerce and social commerce that’s taken place in the last two years alone. As we know, consolidation is not a new trend within business as a whole, however, we are seeing it move more and more in the online space with the acquisition and/or rise of eWallets and e-commerce-owned payment systems. By 2031, the mobile wallet market size will be worth $16.2 trillion, according to a Bloomberg report. This is a growth rate of 22% between 2022 - 2031. When thinking of mobile wallets, one may think of traditional banks offering an online or mobile solution, however, mobile wallets have become a hot development for e-commerce retailers and marketplaces. According to Transparent Market Research, the company that provided the statistics to Bloomberg, the key players in this growing field are Apple, PayPal, Amazon, Google, Samsung, and MoneyGram. An early instance of e-commerce marketplaces jumping on the eWallet train was in 2002 when eBay acquired PayPal, only four years after it was founded. However, PayPal still owned the payments portion of eBay’s e-commerce experience. In 2022, eBay no longer offers PayPal to its sellers, who now have to opt for their in-house payments system Adyen, meaning eBay now denies sellers access to PayPal. Payments are now transferred directly from eBay to the sellers account. But, why the change? Consolidating payments gives eBay more access to customer data, they can change any part of the system at any time to benefit themselves or their customers, and they can incorporate local payment methods. The change for eBay only officially started in June 2021, so time will only tell how this affects revenue, market share and customer relations. From the US to China, Alibaba, which ranks at number one in its homeland, is arguably the world’s second largest e-commerce marketplace. Alibaba is so large - and so entrenched - it holds 51% of China’s retail e-commerce market share. JD.com, which takes second place, came in at 20%. Similarly to the eBay-PayPal relationship mentioned above, Alibaba has its own payments system, AliPay. Amazon has Amazon Pay, Apple has the same, and Google too. Tencent, an e-commerce marketplace in China has WeChat Pay and even Facebook, originally a platform created to connect friends and family, has developed Meta Pay this year. This fact alone should tell a consumer that tech and retail e-commerce giants are consolidating the entire shopping process, end-to-end. These e-commerce Goliaths have created an ecosystem for the consumer to exist in and to keep rotating between, as if there are no other options available. Using just one company and one platform to search, shop and pay also provides them with more customer data, thus fine tuning their understanding of customer behaviour and expectations. The consumer continues to turn in a revolving door fashion within the same company - and that’s the power of consolidation. How Amazon Marketplace leads consolidation, but suppresses competition Amazon aggregators, which are larger businesses operating specifically to seek out and acquire smaller businesses on Amazon Marketplace, will experience a boom in size and profitability in the coming five years, after it already achieved $300 billion in sales in 2021. Currently, there are 99 active Amazon aggregators. These larger companies, such as Perch, RazorGroup and Heyday, have been seeing the value of smaller businesses selling their goods on Amazon, even if they aren’t even close to being a household name. Why? Due to the power, influence and market value a brand can build on Amazon Marketplace. Amazon Marketplace’s authority in owning the consumer is so large, it dominates their searches on the world wide web. Of all US adults, 53% of them start their search online for products on Amazon - not a search engine. Globally, search engines are in first place at 40%, however, Amazon is in second, only trailing by a 2% difference at 38%. Only 16% of searches included a consumer going directly to a brand’s online store. In addition, Amazon reported that independent businesses selling goods on Marketplace in the holiday season of 2021 sold approximately 1 billion items, which saw a 50% increase in sales from 2019. Lastly, a New York Times report found that all the sales on Amazon Marketplace were almost double that of Amazon Web Services (AWS) in 2021. It is no wonder, then, why businesses in the business of consolidation are after the success and profits of small-to-medium-sized enterprises (SMEs) on Amazon Marketplace. Although the sound of almost instant success as a seller on Amazon Marketplace sounds enticing, competitors in the industry, as a whole, suffer the most and are being quashed. A small business with a product on Amazon and Walmart, with the latter platform having a slightly cheaper price, will see a decline in digital real estate when Amazon implements its buybox suppression strategy. The seller is then forced to raise their price on Walmart, which isn’t ideal for both the consumer and the seller. Furthermore, Marketplace sellers may enjoy the consistently high revenue and the ease of Amazon managing its shipping, but they basically have no rights as sellers over their own product. As a Marketplace seller, they also can’t sue Amazon for anything. More dominance and less transparency means Amazon is able to control the seller, own the consumer and unfairly dictate to the market. Talk to one of our consultants about dynamic pricing. Contact us What are the main motives for consolidation? Avoiding the domestic growth slump One of the ways e-commerce retailers are attempting to avoid reaching their growth limit within their home country is to expand globally. Because competition is stiff; the market is saturated, and consumers have the pick of the litter, retailers are finding that going global can avoid a domestic growth slump. Forbes reported that 76% of online shoppers have made a purchase from an online store outside of their home country. Going global is no easy feat, and even some of the more successful retailers consolidate smaller retailers in new markets to make gains in market share and to increase revenue for further internationalization. Becoming a one-stop-shop Before e-commerce exploded, brick-and-mortar retailers consolidated by adding shops within a shop. For example, you’d be able to go to a hypermarket and purchase items from food to portable speakers to pharmaceutical medication to camping gear. Today, online stores are wanting to increase their value to consumers by becoming a one-stop-shop. eBay and Amazon began this trend more than a decade ago, however, new players like Etsy, Zalando, Cdiscount, and Allegro, are disrupting Amazon and eBay’s market. Understanding, then shaping consumer behaviour By attracting and working to retain new customers, retailers can understand the needs, wants and desires of shoppers from various age groups and socio-economic backgrounds. They can collect this data and in turn use it to better tailor their product offers to consumer behaviour, for example, through intelligent pricing strategies also in combination with inventory, marketing campaigns and of course promotions. The more retailers “own” data and the better they understand their customers, the more they can curate their products and online platform to make profit. A tough decision for smaller players Consolidation after fast digitalisation is taking place at an alarmingly speedy rate, turning online stores into marketplaces into e-commerce conglomerates. There are many benefits to consolidation for big players, however, smaller businesses will need to seriously weigh out the pros and cons in the face of the company’s ethos, mission statement and long-term goals.

Of the $5 trillion global digital commerce market, $3 trillion comes from marketplaces alone. As a niche of the e-commerce industry, that’s quite an achievement, considering how many more individual online stores there...

Of the $5 trillion global digital commerce market, $3 trillion comes from marketplaces alone. As a niche of the e-commerce industry, that’s quite an achievement, considering how many more individual online stores there are in comparison to marketplaces. Some of the most well-known online marketplaces are Amazon, eBay, Alibaba, Etsy and Walmart. Instagram and TikTok: From scrolling to buying In Europe, these are all available, however, online marketplaces specific to the EU are Cdiscount, Real.de, Otto, Bol.com, Zalando, Beslist.nl and many more. Although Amazon is an American company, they are still the number one online marketplace in Europe, with approximately 1.6 billion visits per month. Another American company, eBay, stands as the EU’s second largest marketplace, however, with only 37% of Amazon’s European traffic. Nonetheless, what does this all mean for the future of retail and e-commerce? How will the landscape of marketplaces change over the coming years? Which sectors and departments of retail are leading the way in the marketplace space? As we look to the future of marketplaces. Social media and search platforms When search platforms like Bing, Yahoo and Google first came onto the scene in the late 1990’s and early 2000’s, the wonder and awe of having the world’s knowledge at your fingertips was life-changing, and this is before the addition of advertising and shopping features that followed later on. Users of the internet would never have guessed that a search engine like Google would become, in essence, a marketplace on its own. The same can be said for social media platforms like Facebook, TikTok and Instagram which started out as spaces to share photos, videos and to connect with friends and family. Looking back at their original states, it is astounding to see the growth and evolution of social media platforms and search engines. In 2016, Facebook created Marketplace, a section of the platform that provided locals in a city to buy from and sell things to one another. Instagram tested out shopping features through Instagram Stories in 2018, but by 2021, the feature was so successful that the platform created an entire tab dedicated to shopping. From clothing to swimwear, jewellery to furniture, the tab curates posts and ads from brands and retailers selling their products. The feature has become so advanced, users don’t even have to leave the Instagram app to complete a purchase. In 2022, 44% of Instagram users shopped weekly on the app and 50% of Instagrammers use the app to find new brands. According to Facebook’s own data, 1 in 3 users in the US will use Marketplace to purchase something, keeping in mind it is the 5th most popular marketplace in the country. Social commerce, as it has come to be known, is only going to get larger, with sales expected to reach $600 billion by 2027. It is safe to say that social platforms have moved from content sharing to content marketing to multi-brand, retail-driven platforms. Search engines have had a similar meteoric evolution. Google offers a “Shopping” tab, similar to their other offerings like Maps, Images, News, Calendar and more. Bing and South Korea’s Naver also offer a Shop-like section. Google’s search technology allows it to be the leading search engine marketplace as they incorporate shopping options into organic searches, including voice search. For example, if someone Googled “red triangle bikini” or “dairy-free baby food”, search results would be an intricate and deliberate blend of content and digital commerce including products from brands and retailers. The marketplace business model has come a long way since the Bazaar of Tabriz in the 16th century. Talk to one of our consultants about dynamic pricing. Contact us Second-hand apparel: A growing marketplace Shopping for vintage clothing and buying from second hand clothing stores is not new, but it is, in itself, revolutionising. Covid-19 had an impact on resale marketplaces, as families and individuals looked for ways to make money or ways to scale down on consumption and expenses during lockdowns, job losses and furloughs. By selling and monetizing fashion, instead of adding to global waste, consumers were able to maximise the circle of fashion - and ultimately drive the growth of resale marketplaces around the world. Buying clothes previously owned by others is not only becoming a multi-million Euro industry, but it is firmly finding its place on its own as an online marketplace. Also known as a resale platform, the second hand apparel market is expected to be valued at $218 billion by 2026, doubling in size from 2021 to 2025. The likes of Vinted, a resale platform in Europe, the UK and the US founded by Thomas Plantenga, allows users to buy and sell used clothing and other items through its app and desktop option. Over 65 million people around the world use the service without having to pay selling fees - a feature quite unique to most marketplaces and resale platforms. On the other end of the resale platform market is Dubai’s The Luxury Closet (TLC), which acts as an exclusive, premium resale platform in the Middle East. You can buy second hand luxury items from Louis Vuitton, Hermes, Dior, Rolex and more. TLC’s success and popularity has grown so large, it has opened up in the UK market in July. Later on in 2022, it plans to extend to Europe. Resale platforms like TLC have tapped into a new arena of the second hand market, offering consumers the chance to own designer items at lower prices than what one would pay if it were new. What makes a resale marketplace unique to shopping at a second hand store is, firstly, the experience and, secondly, the fact that major resale platforms include the products from smaller second hand apparel businesses, making it a marketplace and a retailer simultaneously. Resale platforms have a business-to-business (B2B), a business-to-consumer (B2C) and a consumer-to-consumer (C2C) business model all running concurrently. The UK’s resale platforms market already includes Mr Porter Resell, Reflaunt and Lampoo which are also available in France, Germany and the Netherlands. Vestiaire Collective is Europe’s largest resale platform, of which The Luxury Closet will have to contend with. Vestiaire Collective’s CEO Maximilian Bittner believes that the growing focus on sustainability will further drive the success of resale marketplaces. “Fashion fuels some of the world’s biggest problems: Overconsumption, overproduction, climate change, and work ethics,” he said in an interview with McKinsey & Company. He admitted that he was surprised at how much of the sustainability aspect pushed the success of Vestiaire Collective specifically: “The investors who reached out to me at the time looked at this very much as a second hand, luxury fashion business. I don’t think people were yet seeing how big the sustainable opportunity could be. And I really have to admit, I didn’t see it either. But the speed at which it came now absolutely surprised me.” Another resale marketplace that’s focused on sustainability is Depop, which encourages engagement between sellers and buyers as a part of the second hand and thrifting community. The sellers are new-age brands and the buyers are consumers mostly from the Gen Z population - approximately 90%. Depop has had $1.6 billion in purchases to date; showing just how steadfast resale marketplaces are becoming as they disrupt Google Shopping and traditional wholesale retailers like Walmart. How are traditional brick-and-mortar brands making a change? Despite experiencing store closures amid lockdowns in China 2020 and again in 2022, with a third of their stores in the country remaining closed, luxury brand Chanel is doing well globally with a double-digit improvement in sales. Global sales increased by $15.6 billion in 2021 - a 49% increase from the previous year. However, the company’s CFO Philippe Blondiaux shared in June that despite the boom in sales, Chanel has new plans to further increase profits, with some of those plans seeing major changes in how the consumer will experience shopping at Chanel. For one, the brand may begin limiting availability of certain products to instigate soaring demand, which is something they have already started doing with their Classic Flap bag. Blondiaux shares that one customer can only buy two of these bags per year, which cost $10,000 each. This will increase exclusivity of owning a Chanel item and will also curb the bulk buying that often takes place within the resale and grey market. Chanel has already seen how effective this strategy is in South Korea, where customers have lined up outside a Chanel store in the capital of Seoul to take part in what’s called an “open run” - a sprint to get one’s hands on high-demand items. Another strategy used by Chanel will be a greater move to direct-to-consumer (D2C) within the next few years, which is something we’ve seen retailers and brands do on a heightened scale since 2020. Blondiaux shares that their magnificence and perfume enterprise, which is their department for makeup, perfume and other beauty products, will mostly exist online as they prioritise e-commerce. This department has largely always relied on wholesale or brick-and-mortar stores to succeed, however, since e-commerce sales jumped 32% for the magnificence and perfume department, it will soon become the channel of priority for Chanel. Other wholesalers, like makeup retailer Sephora and high-end perfume and cosmetics retailer Marionnaud, have both seen their wholesale orders drop drastically in the US market, which can be attributed to the growth of e-commerce and a decline in American malls. Department stores are taking tips from online marketplaces Concept stores Successful online marketplaces focus heavily on the actual experience of shopping online, using beautiful imagery, video content, seamless payment processes, intuitive “you may also like” suggestions, dedicated brand pages and more. When a consumer shops on an online marketplace that focuses on the entire shopping journey, they can feel the difference from walking into a department store that’s wall-to-floor merchandise. Nowadays, we are seeing international brands take a hard look at their stores to see how they can evolve and remain interesting and relevant. The idea of the “concept store” takes the very senses and experiences you would want in a marketplace and brings it to life in physical form. Walking into an Adidas or Nike store to buy a pair of sneakers or visiting Yves Saint Laurent to purchase a coat is no longer just about the product - it’s about the lifestyle of the brand. In fact, concept stores have very little product in them, as a way to maximise exclusivity whilst providing a visual experience. Nike has created a “House of Innovation” that combines sports luxe, technology and sustainability as an experience. Each store is solar powered and made from sustainable materials, while digital technologies are used to show off the athletic capabilities of each product. Inspired by fragrance bottles, Hedi Slimane, the creative director for Celine turned their Parisian store into a luxury fashion experience. “Fragrance precedes the fashion I create,” says Slimane. The store combines Celine’s 11 new fragrances, high-end leather goods and haute couture items. Store-in-store Although the store-in-store concept is not new to retail, it has seen an increase in popularity as retailers consolidate smaller brands and businesses, and brick-and-mortar retail contends with e-commerce. Some brands have also merged, combining their products, employees, logistics and resources to stay in business. An example we all may be familiar with is a branded coffee shop like Starbucks within a clothing or food store like Macy’s; or a beauty retailer such as Sephora having an in-store kiosk for JCPenney. According to a Mastercard study, “to increase offerings to customers” came in as the top reason for stores joining forces at 33%. To consolidate resources and to increase foot traffic came in second at 25%.   Marketplaces are the new ground zero   Department stores used to be the original playground for consumers to search for new brands; to compare products and to enjoy the endless amounts of choice. However, an online marketplace could be compared to an entire mall with all the options of various stores and categories. Although department stores and wholesale retailers still hold a significant place in retail, the changing face of marketplaces is evolving rapidly. In 2020, 63% of all global online spending occurred via online marketplaces; a figure that increased by 29% from the previous year. With a growth rate like that, it is easy to predict that online marketplaces will be the new go-to choice for consumers around the globe. Going forward, retail leaders will need to reconsider their approach if they are yet to enter the online marketplace arena in order to further monetise their current commercial strategies, increase their relevance, as well as their global or domestic footprint.

“Where did you buy those jeans from?” someone may ask. “On Instagram,” another may say. Ten years ago, that answer would’ve received a confused, eyebrow-raising expression. Today, it is met with someone picking up their...

“Where did you buy those jeans from?” someone may ask. “On Instagram,” another may say. Ten years ago, that answer would’ve received a confused, eyebrow-raising expression. Today, it is met with someone picking up their phone and logging into Instagram to get shopping. How has social media become one of our top destinations for browsing, searching for new brands and tapping “Place Order”? In fact, Forbes predicts that social commerce is set to grow faster than e-commerce to $1.2 trillion by 2025. Over the last few years, we predict that three major factors have contributed to this shift: The expansion of brands and products; the increase and ubiquity of digital marketing; and the growth of social media apps. Is social commerce proliferating to the point of taking over traditional e-commerce? And with brick-and-mortar shopping still very much holding a presence in retail, how are brands and retailers dealing with the rise of social commerce? Instagram and TikTok: From scrolling to buying The app that has led the way in social commerce up until now is Instagram. Its parent company, Meta, added some shopping features in 2016 like product tags, however, the shopping section of the app only truly flourished from 2019-2021 when features like a dedicated “Shop” tab was created with Instagram checkout; categories for various items for easier browsing; shopping stickers on Stories; and ads so that users can discover new brands. Each month, 130 million users tap on the Instagram Shop tab and engage with Instagram Checkout, showing just how valuable the platform can be to brands and retailers. What’s also interesting about the Instagram Shop tab is how its algorithm connects consumers with products. According to a Hootsuite study, 2 in 3 people say the network helps foster meaningful engagement and connections with brands. Another platform that is claiming its stake among social media sites as an e-commerce powerhouse is TikTok. Although Instagram is still the bigger platform in terms of monthly users, TikTok dominated the amount of app downloads for the first quarter of 2022, achieving 175 million downloads; totalling over 3.5 billion. The last time an app had this much global reach was in 2018 when WhatsApp achieved 250 million downloads within one quarter. Another statistic that should prick the ears of retail and business leaders is the fact that the average TikTok user spends approximately 29 hours per month on the app while the average Instagram user spends only 8 hours per month. If a potential shopper is spending this much time directly engaging with content on a platform, who’s to say that this time isn’t being converted into sales and profit for brands and retailers? These numbers have - or should have - implications for a brand’s marketing and commercial strategies. According to a Shopify survey, 21% of consumers who use social media to shop use TikTok “all of the time”, making it the platform most used for shopping. YouTube came in second at 17%, and Instagram at 16.4%. Furthermore, 67% of TikTok users say they feel inspired to shop even when they weren’t planning on doing so. What makes TikTok such a successful shopping platform is its unique algorithms, dedicated shopping features, and its focus on sharing instead of liking, which spurs the virality of a product. In addition, unlike Instagram where users primarily follow creators and see their content, TikTok users are used to receiving suggestions from the app in their stream, regardless of which creator it comes from, as long as it aligns with the kind of content they’ve already shown to like. It is therefore easier for brands, retailers and advertisers to place ads here and get into the user stream. What are traditional wholesalers doing to combat social commerce? If you can’t beat ‘em, join ‘em. Well, that’s the philosophy at least adopted by some traditional wholesale retailers like Target and BigBuy who are riding the wave of social commerce to increase sales and relevance - instead of standing idly by on the sidelines. As we’ve said before, if brick-and-mortar retail wants to remain significant to consumers, they need to adopt digital commerce strategies, and that’s exactly what we’re seeing develop. Scrolling through social media, you can now access high-traffic wholesale retailers like Target, who have their own dedicated Instagram Shop and Checkout - and they’re not the only ones. Walmart, Saks Fifth Avenue and the Net-a-Porter Group all have Instagram Shops that users can shop from directly. According to a Huge Inc study, 74% of shoppers say they are now more incentivised to shop on social media than before the Covid-19 pandemic, making the convergence a necessary strategy for wholesale retailers. However, some brands are still committing to brick-and-mortar expansion, like Spanish clothing brand MANGO who is planning to open 30 new stores in the US in the coming years. A blended network For consumers, shopping can be accessed at their fingertips, while they work, while they look for travel inspiration on TikTok, or while they lie in bed listening to a podcast. In other words, it’s more accessible than ever. For brands and retailers, keeping up with the multiple ports of shopping demanded by consumers is a must for survival. With wholesale retailers turning to social commerce, and photo-sharing platforms becoming digital marketplaces, the retail landscape is blending, blurring and converging. It is becoming a space where traditional labels and rules don’t apply in the hunt for consumer attention and loyalty.

Voice commerce is impacting retail and e-commerce When the phrase “Hey, Siri” was first announced with Apple’s launch of its virtual assistant in 2011, not even the most forward-thinking of retail experts could have...

Voice commerce is impacting retail and e-commerce When the phrase “Hey, Siri” was first announced with Apple’s launch of its virtual assistant in 2011, not even the most forward-thinking of retail experts could have predicted how the virtual assistant known for answering trivia questions and setting an alarm clock would impact e-commerce later on. Since Siri’s advent, she’s been joined by Amazon’s Alexa, Samsung’s Bixby, Microsoft’s Cortana and Google Assistant, and as a group, the global voice recognition market is estimated to be valued at €25.9 billion by 2026. According to a study by Price Waterhouse Coopers (PwC) and Statista that asked about preferences on search and shopping behavior, it was found that 71% of people would prefer voice search over traditional search by typing in the search term and 32% of US consumers own at least one voice-activated speaker. It is fair to say, then, that this growing trend of how consumers shop in the digital age is something that brands and retailers should be learning more of so that they can cater to the evolving methods of the modern-day shopper. We take a look at voice search and how it has begun to impact not only the world, but the industry of retail. Who and what is driving voice search? PwC conducted a survey looking at the impact of voice assistants on consumer behaviour and found that specific age groups and devices are leading the way in voice search. The 18-24 and the 25 - 49 age groups show the highest usage in voice search, agreeing that they use it at least a few times a month. As these age groups - better known as Generation Z and Millenials - grow into their consumer roles, they’re also inadvertently showing retailers what they should be focusing on in terms of future shopping methods and habits. They are not only aware of voice search; they are driving its growth and usage. In addition, smartphones are on the top of the list of devices used to activate voice search. Finding your voice in the online shopping journey Although statistics are showing impressive numbers that are growing daily, voice search is still an evolving trend that includes AI and machine learning (ML) to improve usability and searchability. As it currently stands, voice search is mostly used for queries, checking the time or weather, or Googling a general knowledge fact. However, using voice search for the purpose of shopping is surging, with Amazon Pay listing “faster way to shop” and “able to purchase in the moment” as the second and fifth most common reasons people use voice search respectively. Statista forecasts that by 2023, the global voice assistant e-commerce transaction value will be at €18.3 billion and due to Covid-19 lockdowns, voice commerce in the US surged by 72%. Other activities surrounding voice commerce that are becoming common include setting purchase reminders, browsing for new products and creating shopping digital shopping lists. Amazon Echo, the smart speaker from e-commerce giant Amazon, is the leader in voice speaker commerce, but despite their massive hold within the market, there are still some challenges with voice commerce: Understanding voice searches and properly storing card information and processing payments. A quarter of online shoppers in the US select these two recurring problems as concerns over voice shopping. Although the technology is always improving, it will take time for voice search to become a trusted, mainstream method of shopping. Take note that the same was said for online shopping less than a decade ago, in fact, the technology is developing so fast that voice assistants are in most European cars today and are becoming more integrated with our smart home devices than ever before. In a world becoming touchless, voice will become the control centre - it's the most natural evolution. Talk to one of our consultants about dynamic pricing. Contact us Optimising omnichannel and online stores for voice search With the simple fact that the average person can speak approximately 150 words per minute, but can only type 40, it begs the question of if the speed in which people can voice search and shop can impact an e-commerce sales boom. By simply telling your virtual assistant to search for “black gym shorts”, you’re presented with a number of online retailers within a few split seconds. Voice assistant technology is able to combine your keywords, your location and your past searches to offer a number of options, and this presents a huge opportunity for brands and retailers, if they can first establish brand or product loyalty. However, this doesn’t mean online stores shouldn’t or wouldn’t have to do the work of optimising their websites for voice search. In 2019, 42% of the global online population made at least one purchase per month using voice search, and that number has surely grown since the technology used to power voice search keeps improving. Online stores need to gear their website’s content to fit what people may search - this, online retailers have always known. But how does a brand optimise their online store for voice search? It’s easier than it sounds: A brand’s SEO strategy should include long-tail keywords. The average voice search is between three and five words, but traditional, written searches are shorter than that. When people search by speaking, they generally give more detail, so think of it as if you were asking a store salesperson back in the 90’s. Use question-and-answer formatting. Research shows that people often phrase things in a question when using voice-activated speakers or virtual assistants. To provide key information about their products, online stores can use this format to improve their Google ranking and ultimately their website traffic. For example, a shopper could voice search, “Hey Siri, what sizes do Under Armour have in black gym shorts?” Use conversational language. This will require retailers to do some research and to find a tone that fits in with their brand, but shoppers using voice search will likely talk in an informal, relaxed manner: “Hey Google, I'm looking for an electric toothbrush; one recommended by dentists.” Make your website mobile-responsive. At a majority of 55%, internet traffic is mostly coming from mobile phones and, as mentioned previously, 57% of Gen Z and Millenials are using their smartphones to activate voice search over any other device. Be detailed with your geographical location and information. For omnichannel local businesses, voice search could be a game-changer for website traffic. In the US, 58% of people who use voice search are looking for a local business. Attract repeat customers. If a retailer’s shopping app is voice-search optimised, a customer could set up a weekly or monthly shopping list of staple items and simply say, “Hey Siri, place order and pay for my shopping list in my Amazon basket.” The ease of this saves customers time and effort - which has fast become the main reason why people shop on an app. Ready, set, go... Generally speaking, most online stores could be doing more to ensure their website is optimised towards voice commerce. However, retailers and brands are not in the dark regarding what consumers expect from them when they do a voice search. According to a Google study of voice-activated speaker owners, 52% of them want deals, sales and promotions; 48% want personalised tips and information; 42% want information on upcoming events and activities; 39% want easy access to business information like trading hours and phone numbers; and 38% want access to customer support. This possibly serves as a helpful starting point for how online stores can enter the market of voice commerce without feeling like they need to re-develop and re-code their entire website. While for now it won’t replace any direct method of purchase it certainly is becoming a part of the shopper marketing journey, retailers should be enthusiastic about the development of voice commerce as another venue of revenue. In fact, just ask Alexa if it's a good idea.

You may have heard the terms “Generation Z” and “Millennials” as a way to describe a certain age group, however, the terms are also being used to describe a certain trend, be it in the change in spending habits or...

You may have heard the terms “Generation Z” and “Millennials” as a way to describe a certain age group, however, the terms are also being used to describe a certain trend, be it in the change in spending habits or behaviours. As e-commerce continues to mature and brick-and-mortar stores are repositioning themselves, finding creative ways to remain relevant, Gen Z is ushering in a new era of shopping for the world of retail. Although Millennials and baby boomers remain vital to retail, it is interesting to note how this younger age group, who have never known life without the internet, streaming services, apps or shopping online, are spending their money. After all, they are the future of shoppers and currently account for 20% of the market in the US, valued at $144 billion. More importantly, teenagers influence their parents to spend more than $600 billion per year globally. As we delve into the unique differences between Gen Z and Millennial spending habits; and whether influencer marketing and the concept of instant gratification is still relevant, we highlight a number of interesting facts in buying choices retailers should take onboard for the future of retail. Gen Z vs Millennial spending habits Specifically, Gen Z refers to the age group that was born in the late 1990’s and up to 2010. Today, adult Gen Zers should be between the ages of 18 - 24. Millennials, on the other hand, are people born roughly between 1986 - 1996. They should be between 26 - 35 years old in 2022. Although there aren’t that many years between the two age classifications, there are significant differences in the way they shop, make decisions and what they value. If retailers, both online and offline, are wanting to attract and retain this new era of shoppers, they’d be smart to see what makes them tick when it comes to spending. Omnichannel shoppers Despite growing up with online shopping as the norm, a McKinsey & Company study that surveyed 10,000 consumers across multiple age groups and 25 product categories found that Gen Z are in fact fans of omnichannel shopping; instead of strictly online-only. Gen Z shoppers enjoy the experience of going to physical stores as well as using their apps to make quick purchases or enjoying the ease of same-day delivery. This is good news for retailers who have an omnichannel strategy, but for those who are solely online, they will need to incentivise shopping online over the tactile and sometimes visceral experience that brick-and-mortar stores offer Gen Zers. Talk to one of our consultants about dynamic pricing. Contact us Brand authenticity and identity It is more important for Gen Zers than Millennials to shop from brands or retailers that have a strong brand identity. It is also more valuable for Gen Zers to spend money on brands that value authenticity. This comes from a desire to stand out instead of fitting in and we see this in their choice to choose brands who focus on issues like sustainability or anti-racism instead of luxury or coolness. According to a report from First Sight, 73% of Gen Zers are happy to pay an extra 10% on an item if they know it is sustainable while for Millennials, brand names have shown to be more important than values. Sporting a jacket from Levi’s Jeans or gym apparel from Lululemon is a large motivating factor for Millennial spending choices, regardless of how the product is manufactured. This year, McKinsey did an extensive Gen Z survey to find out who they really are and how it affects companies. Below, we see how the various generations are defined and how that definition affects their consumption. Gen Z’s core behaviours are: Influencers are becoming less influential Only 10% of adult Gen Zers (aged 18 - 23) allow influencers or celebrities to inspire or sway their buying choices and although social media is still a large determining factor, 39% to be exact, it is less about a blogger or influencer posting about outfits and products and more about a brand using their social media accounts to engage with users. For example, a brand like Adidas or Fenty Skincare will reach and influence Gen Z more by creating engaging and meaningful content with their own social media pages than handing off an item or product to an influencer to include in an Instagram post. Influencers impact Millennials even less, at only 6%, and their largest motivators at 32% are online reviews, websites and blogs. Small businesses over global corporations Afterpay, a fin-tech service in the US that allows you to buy now and pay later, released their findings from January 2020 - July 2021 and found that spending at small businesses increased among Gen Zers by 268%. Millennials still make up the bulk of people who buy from small businesses, but Gen Z takes the cake for the biggest growth rate. Although thrifting, buying second hand or vintage clothing and furniture was not started by Gen Zers, it is a movement that has been accelerated by them. Because of their age group, most Gen Zers were in primary school during the global financial crash of 2008 and are just finishing high school during Covid-19. Their psyche has been heavily influenced by economic crises, which affects how and where they spend their money. The age of same-day delivery vs instant gratification There are two schools of thought surrounding how Gen Z deals with the issue of instant gratification. On the one hand, they are somewhat used to having same-day delivery, or at least next-day delivery as being the norm. On the other hand, Gen Z has shown to take more time with decision-making when it comes to buying within certain categories like clothing, footwear, and skincare products. In addition, it is easier than ever to compare prices for the same product across multiple online stores simultaneously, which is something Gen Zers love to do. According to a Drapers Bespoke study that surveyed 2,000 Gen Z and Millennial shoppers, 51% of Gen Zers find that price comparison is the biggest benefit of online shopping. However, the same study showed that 45% of Gen Zers picked “waiting for deliveries” as the most annoying thing about online shopping over “unpredictability of fit”. Often referred to as “the last mile”, delivery is likely the most expensive and most important part of the online process for retailers, and with 56% of shoppers not returning to an online store if a delivery took longer than they expected or if there were other delivery issues, the importance of this speaks volumes. This highlights that it is less about instant gratification and more about impulse control and if that impulse is not satisfied within the expected time frame, shoppers may choose to go to the next best option. Gen Zers see delivery as an extension of the retailer or brand they’ve shopped from and include it in their own personal experience. The future of e-commerce is young, but not unpredictable A November 2021 report by Bloomberg estimates Gen Z’s disposable income to be approximately €343 billion, which is an estimate that tripled in three years. As mentioned above, Gen Zers have been shaped by economic turmoil at various points in their life, making them a little more susceptible to getting a job as a teenager, getting a part-time job if they already have one, or saving as much of their earnings as they can. It also makes them a little more cautious and thoughtful about who gets their money. Brands like Estee Lauder, Coach and American Express Co. have named Gen Z as prime targets to gain their attention and loyalty, but they will need to look at what Gen Z shoppers value, like and dislike in order to turn them into customers. However, the difficult part with Gen Z is that it isn’t just one factor that they look to for buying a product - it’s every factor. It is the material used; the country of origin; the ingredients; the makeup of the company’s C-suite; the shipping methods and costs; the very packaging of each delivery; the entire carbon footprint; the way grassroots employees are paid and treated and more. The connected world of Gen z It has become the norm to stay abreast with information unlike ever before. Gen Zers, and any other generation for that matter, can find out anything they want to know by simply typing a few words into Google on their smartphones. After all, McKinsey calls this generation “True Gen” to describe one of their core values: A search for truth. Gen Zers want to tell a story with their buying choices, from clothing to skincare, and if brands want to remain relevant to this developing group of consumers, they’d be sure to take a look at how they’re being perceived.

Over the last two decades, as the growth of e-commerce has propelled the retail industry forward, a parallel trend has taken shape: The rise of the grey market or parallel market. The expansion of online stores like...

Over the last two decades, as the growth of e-commerce has propelled the retail industry forward, a parallel trend has taken shape: The rise of the grey market or parallel market. The expansion of online stores like eBay and Amazon in the early 2000’s allowed for unauthorised resellers of the premium and luxury segment to take place, and at times having only negative effects on the brands they trade, the customer and the industry as a whole. The grey market is a sector that has operated out-of-sight from most consumers but is now taking centre stage in many consumer baskets. An estimated 8% of the €243 billion personal luxury goods market is grey. For instance, if you are looking for a pair of Ray Ban aviator sunglasses, the price is €145 on ray-ban.com. However, with a simple search on our PriceTracer platform, we found the product for the average price of €118 over all offers. From 44 vendors, 25 of them are selling this product for below the average price. Grey-market activities mainly cover two scenarios: Unauthorised third-party resellers will import a product in bulk, usually from a different market and then resell it on their online store. The second scenario features retailers like Amazon and Alibaba, whereby smaller retailers use their platform as unauthorised third-party resellers. In both cases, most have no official partnership with the brand they’re retailing and as it is most often high-end items such as designer clothing, high-end skincare and makeup, sporting brands there is a huge demand. In Germany, a top global fashion brand has 11 official, authorised resellers, however, our PriceTracer service detects 130 vendors nationwide. This means this particular brand within Germany has a grey market size of 91.5% compared to a much smaller pool of authorised sellers of 8.5%. In other cases, brands may not be aware of the size of their grey market pool. Defining grey and black markets and counterfeit goods There are two key aspects that often get muddied when looking at grey markets, namely the differences in counterfeited vs unauthorised products. Grey market activity refers to the unauthorised distribution channels where branded products are traded. The product is the real, however, it’s the unauthorised distribution channels that make it part of grey market activity. Black markets are more sinister. Black market activity includes items that are illegal to manufacture or sell. This includes both counterfeit and genuine products. Examples of black market items are exotic or protected wild animals, illegal drugs, weapons or human organs for illegal transplants. Counterfeited goods are fake products attempting to mimic the real thing. Sellers of counterfeit goods usually sell these items at a lower price point in a market that would typically not be subject to this brand’s retail strategy. Similar to some of the counterfeit makeup, electronics or sports brands sold at street markets around the world. How a product’s final price is comprised There are a number of pricing strategies that brands and retailers may use to come up with a specific number, including competitor-based pricing, cost-plus pricing, value-based, penetration, price skimming, target costing and of course dynamic pricing where everything mentioned above can even converge. Whichever one is used, the end price involves a delicate algorithm balancing the cost price, projected profit margins, inflation, marketing, logistics, employees and the market. Authorised sellers have access to and are part of the chain that links all the costs within a price together. Grey market sellers do not, on the other hand. So, when grey market sellers choose to sell a brand’s product at a much lower or higher price, it has a negative ripple effect on the brand, its customers and the market. Talk to one of our consultants about dynamic pricing. Contact us What are the ways in which brands, retailers, customers and retail as a whole are affected? Sales and margins decrease In 2016, a report by KPMG showed that the estimated value lost by products being sold through unauthorised sellers in the US amounted to $58 billion. Six years on, running parallel to the rise of e-commerce that number has surely increased. The most immediate and obvious impact is the effect on sales and profit for the brand itself as well as their manufacturers and authorised resellers. If a grey market reseller sells a product - like a pair of Nike running shoes - closer to cost price, authorised resellers will take the knock. As the grey market reseller has thickened the competitiveness by providing the exact same product at a lower price. Customers lose certain benefits Knowingly or not, if a customer buys a product from a grey market seller, there are certain things they may not receive that they would if they had chosen an authorised seller. Firstly, there is no 100% guarantee that this product is authentic. Because of the informality of the grey market industry, you cannot be absolutely certain that what you’re getting is not a knock-off product. Secondly, there are often no return policies like with most established retailers. If a product like a shoe or a dress doesn’t fit the way you’d like, you can't necessarily return it. Lastly, there is very little in the realm of customer service as one would receive going into a store or using the online chat feature in the brand or approved e-commerce outlet. Brand identity takes a knock A brand often chooses specific retailers to resell their product. For example, ASOS is an authorised reseller of Adidas. Smaller, lesser-known retailers may purchase Adidas products in bulk and start selling them on a lower price level than average without Adidas’ knowledge. This retailer may also be on the other end of the spectrum when it comes to identity and aesthetic, which can be hurtful to the brand. It is not without reason that premium brands spend a lot of money on marketing campaigns, sponsorships and events to establish a particular image in the market, which is also reflected in a certain price level of its products. Brands select authorised retailers with care that are aligned with their goals, and if a grey market seller attempts to jump on the bandwagon, it could negatively impact brand identity. Customers lose trust in the brand Grey market activity also affects the home electronics industry, with a number of global electronics and smartphone brands falling victim to copy cat merchandise. It is no surprise then that customers thinking they’ve purchased the real thing will be disappointed and rightfully disgruntled when the product stops working after a few weeks, or not at all. Customers - who unknowingly bought electronics from grey market sellers - will lose faith and trust in the brand’s product and overall stature in the market. How can brands fight against grey market resellers? Educating customers about buying from authorised sellers through their advertising and marketing strategies is not a fireproof way to get the message across to customers, but it is a start. Some brands have begun to use brand-specific stickers or tags on products to show that only legitimate products from authorised sellers will have these stickers or tags. Others are using tracking codes to see where products are going, which country they may be shipped off to and if a bulk amount was purchased. However one of the best ways to take action is to simply monitor your brand and the pricing in the market, if there are periods when the price takes a dip you will be first to know and possibly take action.

Automation in the UK Retail Industry? Omnia was curious, so we surveyed the top 150 retailers in the country to find out how they use automation.

Automation in the UK Retail Industry? Omnia was curious, so we surveyed the top 150 retailers in the country to find out how they use automation.

For this month’s Meet the Team blog, we’re excited (and honored!) to introduce you to Vanessa Verlaan, Omnia’s new Operations Director. Vanessa has an incredible career trajectory, and has been working with Omnia for...

For this month’s Meet the Team blog, we’re excited (and honored!) to introduce you to Vanessa Verlaan, Omnia’s new Operations Director. Vanessa has an incredible career trajectory, and has been working with Omnia for the last 6 months as an ad interim Head of People Operations. Vanessa’s work never felt ad interim though, because she threw herself into the job with passion. She was always available to make time for Omnia, so it was no surprise when she officially joined the Management Team as the Operations Director this month. Everybody at Omnia is thrilled to have her officially become part of the team, and we know that there are great things to come from her. Please enjoy this interview with Vanessa. And if you’d like to learn more (or work with Vanessa) check out our careers page. Hi Vanessa, thanks for chatting with me! How are you doing? I am doing well, given the circumstances of the coronavirus! Thanks for taking the time to talk with me. First off, congratulations on officially joining Omnia as a Management Team member! How do you feel? Oh wow, thank you. I feel so excited to be here. I have enjoyed working at Omnia as an interim People Operations lead for the last few months, so joining the team officially felt right. Omnia had everything I would want in a job, and I’m inspired by everyone who works in the company. I feel very proud of joining in this role. You should be! We are excited to have you here. For this interview, I’d love it if you could give a brief introduction to yourself. Yeah sure. So my name is Vanessa Verlaan, and I am the Operations Director at Omnia Retail. I’m responsible for optimizing operations and creating a high-performing company culture to build a solid foundation for growth. I’ve been in Operations for over 10 years, most recently as a freelancer helping startups achieve operational excellence, which is how I came to Omnia in the first place. What about outside of work? What do you like to do in your free time? Outside of work I like to hang out with my son, who is five years old, and my husband. We live in a beautiful spot in Amsterdam near the water, so it’s a lovely place to go cycling and walking. I was supposed to do a 115-kilometer cycling tour this summer, but it got canceled, unfortunately. That’s such a bummer! I’m sorry to hear about that. Yeah, it is a shame. But it’s also understandable, right? That’s true. So let’s go back to your professional life. What is your story? How did you get to where you are today? Well, after studying Tourism I didn’t know what to do with my degree. So I applied to the Air Traffic Control traineeship at Schiphol airport, which is a very difficult program to get into. Each year there are about 600 applicants and they allow 10 people to the class. I don't know — I just tried because I knew I had an analytical mind and I felt strongly drawn to the responsibilities and challenging requirements. It took me a year to do all the qualifications tests to get in, and then I was ultimately selected, which was a huge honor, so I moved to Amsterdam to start the program. It was such a special time in my life. It felt like the ten of us were living in a bubble for a whole year. I mean, the class consists of all young people from ages 20 to 28 and we all started living in Amsterdam, even if we were from different places. It was crazy. You learned something new everyday. Every day was both challenging and rewarding. We needed to develop a wide range of new skills and knowledge, and our performance was judged everyday. It was such an amazing time. But, as you can tell I am not working in the tower. I never made it to Air Traffic Controller, and after a year in the traineeship it was obvious that the job wasn’t for me. Actually, nobody in my class ever made it to Air Traffic Controller. Only about 10% of the trainees do. When it ended for me I was very sad, but also really proud of myself because it was something I worked so hard for and I learned so much. But this was really the start of my career because I discovered my passion for optimizing and change. So I started to work in Operations at Martinair, which is a part of KLM. I was responsible for optimizing and coordinating all ground processes to reduce downtime as much as possible and to have each plane back up in the air as soon as possible. At Martinair I developed my skills related to operations and change management, and I got really excited about inspiring and developing people. But after three years it was time for me to move on and learn new skills in a more commercial and people driven environment. So I went to work for USG People, which is one of the largest staffing and recruiting agencies in the Netherlands. In my time at USG People I worked for different brands in different roles, but they all had one thing in common. Each role was related to change management: either implementation of a large new contract, advising on and implementing new strategies, or leading organizational reorganizations. I really learned a lot along the road and enjoyed the successes we celebrated. After working at USG People for more than nine years though, I was ready for a change of scenery, so I decided to go out on my own as a freelancer working with startups, which was awesome. I get really inspired by working for visionary entrepreneurs. They are so full of ideas and are really inspiring leaders. I liked that I could help them make those ideas a reality by focusing on which ideas to move forward with and how to implement them. I also found that I really liked the smaller size of the companies because they are fast-paced and full of endless possibilities. I worked as a freelancer for two years, and one job brought me to Omnia back in November of 2019. It was supposed to be a temporary position, but everything worked out really well and now I am a full MT member. What an interesting career path! This is also a really good segue. What do you like most about Omnia? There are so many things I like about Omnia! For one it’s small and still in the stage where everything is possible. I also like that the company has clearly defined values that actually shine through in everything we do. Everybody in the company is a superstar in their own way — so smart and driven. I really feel at home at Omnia. Another big thing that I like about Omnia is how transparent everyone is and how open everyone is to feedback and to learning. It’s so important to me to be somewhere where people want to learn and are open to change. I’ve realized I have kind of an “allergy” to the mentality of “Well, this is the way we’ve always done it so there isn’t any reason to change.” At Omnia this attitude just doesn’t exist. So yeah, so many things attracted me to Omnia. It had everything I was looking for in a job. It has been a long time since I’ve felt this inspired and motivated. When Sander offered me the job I was very excited and proud. And what’s your vision for Omnia? What do you want to achieve? What I would really like to do is help scale the company and expand to other countries. And make sure that we have the best foundation possible to grow on. We have a great product and amazing people, so when optimizing our scalability the sky's the limit. I want to make sure we achieve a high performance, yet people-focused culture at Omnia. This isn’t something that happens overnight, but we make progress every day by listening to our teams and adjusting step by step. How would you define your leadership style? I’m quite direct, as you’ve probably noticed. If there’s a problem, I want to discuss it right away, and I want my teammates to be open with me about the things they struggle with. I’m at my best when I work with a motivated team. I’ll make all the time in the world for someone who is motivated and who wants to improve. If you’re not open for feedback or willing to improve though, then I might not be the right manager for you. In terms of my direct reports, I like to give a lot of ownership and responsibility. It differs a bit for each person, of course, but I will help people build a framework for their success. I won’t let people sink. If someone is new to something, I’ll help them figure out how to execute the project. But everybody has their own style of doing things, and I’ll offer a sounding board for ideas on how to do something or provide a different point of view. It all depends on the person, but I prefer to coach and mentor and leave as much responsibility to my report as possible. As the Management Team member in charge of Operations you’ll have a direct role in the hiring of every new person at Omnia. What do you look for in new team members? We want people who match Omnia’s values, because if you don’t match the values then you ultimately won’t be happy at Omnia. So we look for people who are always learning, who are kind, and who will push themselves and their teams to a level of excellence. We want people who demonstrate all three values, but if someone has a superstar score in one area and is average in others, it’s a good sign because I really look for standouts. I want to say though that we do not expect anybody to be perfect. We expect people to be open, humble, and willing to learn. We want people who are able to come in and make mistakes, be honest about those mistakes, and learn and grow from the experience. What’s your favorite interview question? Well it’s not that exciting of a question, but I like to ask people the biggest lesson they’ve learned in the last year and why it was so important. Usually it’s easier for people to talk about things they’re really proud of rather than point out something negative about themselves, so their answer says so much about who this person is, whether it’s from their personal or professional life. How did they uncover this lesson? Did they take ownership? What did they learn and what would they have done differently, looking back? It gives me a lot of insights in someone's ability and willingness to learn. What drives you in your work? I always think, “How can we do it better, faster, and more efficient?” That's just what drives me, both at work and in my personal life. I always think things can be improved and I really like to come up with new solutions or life hacks. I also really enjoy empowering people to find solutions to their problems. I won’t be the one solving the problem itself, but instead I will ask questions to the other person find the answers themselves. Okay, thanks Vanessa! This has been an amazing interview. I have one final question. Do you have any book recommendations for people who are interested in Operations? I have two business books I’d recommend. The first is Lean In by Sheryl Sandberg. When I read this book I saw myself in the pages. It was really powerful for me and I think it’s a good book for people interested in setting an inclusive and equal (work) environment. The second book I’d recommend is Powerful by Patty McCord, who was the Chief Talent Officer at Netflix. I like Netflix’s culture: it’s about really working together as a strong team and empowering everyone to achieve their best. It’s like being a pro sports team with setting high bars, motivating everyone with challenging and rewarding work, and creating an open and transparent culture. Want to chat with Vanessa? You can connect with Vanessa on LinkedIn or reach out through our Contact page.

On October 24th, 2019, we held our second edition of Omnia REINVENT at the Volkshotel in Amsterdam. The day was inspiring, to say the least, and packed with information and insights about the current state of the retail...

On October 24th, 2019, we held our second edition of Omnia REINVENT at the Volkshotel in Amsterdam. The day was inspiring, to say the least, and packed with information and insights about the current state of the retail industry, as well as where it’s going in the future. The speaker lineup was first class, with main stage lectures from Sander Roose, CEO of Omnia Retail Nathan Johnstone, Chief Architect at Omnia Retail Berend van Niekerk, Product Manager at Omnia Retail Nicolas Kroeger, Associate Partner at Retail Capital Partners Piet Coelewij, former CEO of Wehkamp, board member at DisplayData, and industry expert with experience at Amazon, Sonos, Philips, and more. While there were many lessons learned throughout the day, in this post we’ll sum up a few of the biggest takeaways. 1. Winners move fast Sander Roose, CEO of Omnia, announced some exciting news from Omnia. As a company, we’ve sat on a treasure trove of 7 years of pricing information, and we’ve finally reached a point where we can access that data and uncover new retail trends. One of the trends that Sander highlighted was the sheer speed at which the top players are moving. The “winners” in retail change their product prices frequently and across their entire assortments. This has long been the case for the consumer electronics category, but other categories are catching up. The baby category, for example, only changed prices weekly on 18% of products in Q1 2017. That number has since grown to a whopping 25% of the assortment. The beauty and health category also shows an upward trend since Q1 2017, but has been slower to accelerate than the baby category. Thinking strategically Sander’s data also showed that winners think more strategically. Take a look at the following slide. At first glance, both winners and all other competitors in the market appear to have the same distribution in price ratio. This measurement is across all products within an assortment. But these graphs are deceiving. When you drill down further, you find that the winners actually drive profit on products with a lower price point (less than €20). The same winners are then extra aggressive on products that are more than €300. “Whatever you do, do it now” Sander’s data was powerful, and the sentiment was echoed by Piet Coelewij when he said, “Whatever you do, do it now. Move fast before it’s too late.” 2. The big guys “are going bricks” Piet Coelewij, our mainstage keynote speaker, believes that retail is in the fourth phase of innovation: as he so aptly put it, “The big guys are going ‘bricks.’” This is no surprise. If you work in retail or e-commerce, you’ve known about “omnichannel” for the last few years. And when Amazon purchased Whole Foods grocery stores back in 2017 for USD $13.7 billion, there was widespread curiosity about how the online retailer would use a grocery chain to sell more. Now, this practice is commonplace. Amazon has even opened its own standalone stores in several areas of the United States. The retail giants capitalize on these stores in unexpected ways. These stores are not just another point-of-sale for customers, nor are they simply a pick-up point for pre-ordered packages. Rather, these stores allow Amazon another way to interact with consumers and build a brand reputation - and gather data about their target market while they’re at it. Amazon — and other large global retailers — are following the same logic that many of the world’s largest brands are following: the most competitive advantage lies with the company who has the closest direct connection to consumers...and who can act on the data they gather from those consumers. 3. Big data is booming The increased number of pure players who are adopting omnichannel strategies to gather more consumer data illustrates the third lesson from REINVENT perfectly: big data is the most valuable asset to retail. One of the recurring themes at REINVENT this year was the power of data, which was a core topic for almost every presentation. This is for a good reason: there are now more ways than imaginable to collect consumer data, and that data is what sets the winners and the losers apart. Why? Because that data unlocks the consumer market in new ways. When you know who your consumers are in all areas of their lives, you can create better strategies to sell products to the relevant target audience. The need for data is so pervasive that it’s sparked the biggest brands in the world to open up direct connections with consumers. The brand-to-consumer channel is growing rapidly and shows no signs of slowing down. There is a plethora of data that can be an asset to your business. Some metrics to consider include: Product price elasticity, which will help you sell products throughout the day, week, month, and year Historical shopping data to build better promotions based on previous trends (which is especially helpful around the holiday season) Competitor price information so you can respond to the market Consumer preferences from purchase data and reviews to help you improve your products or promotion This list is by no means exhaustive, but it shows just how far data can go in your company. 4. The experts hate the word “omnichannel” Both Piet and Nicolas agreed - they hate the word “omnichannel,” but continue to use it because everyone understands it. Both experts argued the term simply didn’t cover what they expect the future of retail to look like. At its core, the word “omnichannel” facilitates the idea that there will still be separate retail “channels” in the future. Nicolas and Piet imagine a retail future where user experience is seamless and there is virtually no distinction between on- and offline experiences. Instead, the two domains will combine into one holistic store that consumers can access at all times. Nicolas mentioned the Nike+ SNKRS app as a shining example. The app effectively moves the buying experience for Nike beyond the walls of its brick-and-mortar store, merging the on- and offline worlds into one singular experience. Nicolas mentioned a promotion where runners could go to Central Park, run around the park three times and record the run in their Nike app, then get the chance to buy a certain type of Nike shoe after completing the challenge. Nike has been doing this already for a few years. In 2017, Nike held an event in Washington Square Park in New York that drew a sizable crowd, with each attendee holding their smartphone at the ready. As reported by Mashable: The company has joined the growing world of sneaker apps that use tech to sell shoes in an unconventional way (Adidas and Foot Locker both have experimented with apps, to varying degrees of success). On this day, it was a pair of limited PSNY x Air Jordan 12s, dressed in a wheat brown color from top to sole. About a week earlier, Nike had teased the release of the shoe and alerted patrons that they’d only be available through its new Nike+ SNKRS app in a specific location at a specific time of day. There was no other way to get it. You had to either be in one of three designated locations when the shoe dropped or you were out of luck. The tactic works well, and drives engagement with consumers in an exciting, fresh way. Not only does Nike sell a limited type of shoe to avid fans, but the company generates great press with it and gathers unique insights about its target base in the process. Final thoughts REINVENT 2019 was packed to the brim with insightful, data-driven information, and one blog post can’t begin to cover all the insights. Retail is at a critical junction as it heads into the fourth wave of innovation, and it’s an exciting time to see where the market goes. If you’d like to see the presentations from each of the speakers, feel free to view PDFs of each slide on this page. We’ll also cover each topic more thoroughly in the coming months. Curious to see what REINVENT was like? Check out the aftermovie below.

Today’s retail marketplace is chaotic, to say the least. Chasing product information and manually adjusting bids is time consuming and labor-intensive, not to mention inefficient. Pricing insights make the marketing...

Today’s retail marketplace is chaotic, to say the least. Chasing product information and manually adjusting bids is time consuming and labor-intensive, not to mention inefficient. Pricing insights make the marketing process a little easier. By combining competitor price information with your own internal data (such as stock numbers and purchasing prices), your marketing team will gain new perspective for their strategic decision making. We’re excited to announce that we are hosting a joint webinar with Google on how to use pricing insights to ease the pains of online marketing. On December 12th, 2018 at 13:00 CET, Lisa Wedsberg from Google and Thijs Algra from Omnia will spend 45 minutes helping you understand how the retail marketplace is changing and how you can prepare for the future of omnichannel. Interested in learning more? Click here to sign up! Note, the registration form is in Dutch, but the webinar will be in English. Can’t wait to see you there!