Have you come across Zozotown yet? It’s an example of a retail phenomenon that is pushing the boundaries of what’s possible in omni-commerce – the dedicated online shopping channel. The business model behind Zozotown – known as Zozo to many of its users – represents a shift towards true unified commerce.
As well as being an online shopping marketplace, it provides both a warehouse and fulfilment for major and minor brands. Sellers ship their products for storage to a Zozotown warehouse. As there is no inventory risk for Zozotown, and since no initial fees are paid, a higher commission rate is charged compared to other marketplace businesses – in some cases, up to a third of the item price.
Getting personal in retail
The Zozo shopping experience is personalised and interactive, with a customer’s size choice remembered from purchase-to-purchase and styling ideas offered. This model, along with other retail innovations, began not with the online retail giants in the West, but in Asia where e-commerce is expanding at record rates. For example, China’s e-commerce sales are set to grow by £180bn in 2018 alone, which is £23bn more than the UK’s entire annual online spend.
This is the topic of a new opinion paper that I’ve recently published, ‘Retailers look East for digital inspiration’. In it I look at how technology is changing the face of retail and how much of the innovation in this sector has traditionally come from the likes of Silicon Valley in the US. That’s all changing. We are increasingly seeing retail innovations stemming from the East, several of which I describe in my paper. There’s a heightened consumer appetite for digital commerce. Even Japan with its ageing population sees 70 per cent of all the fashion sold online purchased via smartphones.
Putting the customer first
What lessons can the East share with the West? Perhaps the key one is the region’s focus on an effortless customer journey, where the experience is quick, seamless and continually improving. Innovations are very much attuned to the customer, for example with easy (mobile) access, multiple payment options and an almost ‘a la carte’ shopping and delivery experience.
As a consulting-led organisation, Sopra Steria retains a lively interest in developments like this. We constantly monitor disruptive new technologies and business models in the market. This enables us to see which ones are evolving and who is innovating at the fastest pace.
We’re also innovating ourselves. I am particularly interested in Sopra Steria’s development of a voice-enabled conversational chatbot proposition, known as Digital Customer Interaction. This ties in neatly with my earlier point about the need to build an effortless customer journey. It’s a trailblazing proposition in which a conversational bot uses real-time insight to provide a highly-tailored and personalised customer journey, regardless of channel used. From responses to frequently asked questions and automated customer identification and verification, to multimedia objects pushed to a smartphone for multi-channel interactions, our solution supports an end-to-end customer journey using natural language processing enabled by digital voice.
This is just one of the many exciting developments we are seeing in the retail sector, where digital is fast creating a level playing field globally. Retail pioneers in the West, such as Amazon and eBay, should now be looking closely at their peers in the East, where being customer centric is di rigueur.
I am looking forward to the next phase in the evolution of retail and feel sure it will have customer centricity at its core.
For more information on Sopra Steria’s approach to delivering real and lasting value in retail, contact me on firstname.lastname@example.org