The retail landscape is shifting and OEM’s distribution and retail channels are increasingly blurring – even more so when you throw digital and social into the mix.
Consumers still love to watch… and touch!
The benefits to OEMs are huge. Products can still be sold through multiple channels as these touch points give customers interpretations of the product and brand before making a final decision. The tactile nature of most products will allow for brick and mortar retailers, but increasingly pop-up and seasonal retail options that hold little inventory. Consumers getting their hands on the latest iPhone for a ‘look and feel’ experience doesn’t necessarily equate to an immediate purchase at JB Hi-Fi or Vodafone. The same consumer is more than likely choosing to purchase from another trusted (probably online) touch point with an unbeatable price and service offer.
Do these challenges mean it is business as usual for established distribution and fulfilment?
No! A shift is already affecting supply chain and distribution.
Smart retailers will embrace Scenario Two sooner than others and will ride the wave of success. Those choosing the familiar path will continue to pay more for storage and delivery, or worse – will pass these costs on to the consumer.
If you want to jump on Scenario Two sooner rather than later, get in touch with the RANDEM team.
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