Digitization: the antidote to deconfining retailers

Laurent Bouchou, International Marketing Director at NewOxatis, looks back at the importance digital is taking on in retail, especially in these confined times.

Laurent Bouchou:

Just yesterday, I was reading an article headlined "E-commerce is dead, long live digital commerce" or something similar.

The fact remains that we are currently experiencing a real paradigm shift in the international trade market. In 2020, commerce will clearly be digital.

Is the virus to blame? Not solely. 40 million French people buy on the Internet (source: Médiamétrie - Observatoire des usages Internet T1 2020). Buyers, cyber or not, want to buy anytime, anywhere. But above all, they want delivery anytime, anywhere.

The customer experience remains at the heart of tomorrow's challenges. UX is even at the heart of Google's next algorithm update, announced for early 2021. If your customers are happy, Google will be happy too, and will let you know.

The state of e-commerce in early 2020: serving small and medium-sized businesses and local communities

For several years now, e-commerce has been increasingly used by retailers and craftsmen, who are well aware of the enormous potential of this distribution channel. It contributes to the dynamism of local communities, and in particular encourages local commerce and the omnichannel dynamics so popular with consumers.

Today, more than ever, its role is even more important. 57% of e-tailers sell both in-store and via their distribution networks.

In-store sales are on the increase, as buyers regularly complete their orders on the spot. A recent survey shows that e-tailers who use both channels simultaneously record a 14% increase in in-store sales (source: Profil du e-commerçant spécial TPE-PME, NewOxatis/Fevad/Kedge Business School, January 2020).

Internet users are on the same wavelength

Internet users are expecting it. 75% of e-shoppers think that local shops should offer e-commerce (source: Baromètre Fevad/Médiamétrie, May 2020).

The future will be made with digital players. The train is moving, but too many businesses are still standing still. Yes, entrepreneurs are more thrifty than spendthrift. "Where will we be tomorrow?"; "If the situation continues, I'll close.

Even if the government says so...?!

So, to counter the economic crisis, the Government is stepping up to the plate to push confined retailers to go digital.

Today, there's a digital portal and search engine to find tomorrow's partners (those who have already set up ways to help retailers), artisans and others.

We've seen free delivery for independent booksellers, the abolition of commission at Cdiscount, and all kinds of offers that digital players dream of proposing to a captive audience.

What are the obstacles to digitalization?

But beyond the urgency of the situation, it's legitimate to ask: why are so many companies reluctant to embrace digital technology? Why does this fear of technology persist?

The main obstacles to digitalization lie in long-standing perceptions of the web. Lack of technical skills and financial investment are the 2 main obstacles to digitalization. A retailer doesn't want to spend time and money on maintenance problems. The logic that websites are the prerogative of geeks is not totally outdated.

Digital adapts to retailers' realities

Yet the strength of digital lies in its ability to provide answers to very real problems.

There are solutions for every retailer, and hundreds of partners ready to support them. There's room for everyone.

When I see Burger King encouraging consumers to eat Big Macs, Cdiscount giving away its commissions, the daily queues outside the bookshop near me...

Who would have thought that a delivery service or a simple Facebook account would boost the morale of those confined and save the end-of-year results...?

A survivor of confinement speaks out

Every day for the past few months, I've been hearing stories from craftsmen and retailers who never imagined they'd be able to generate sales via a website, a social network or even marketplaces.

How can you imagine selling your products in the labyrinthine world of the web? As dizzying as it sounds, I'll end with the recent experience of a real retailer, Stéphane Quinery; he's the director of the Parisian music boutique Paul Beuscher, a veritable institution that went digital a few years ago. He shared with me his experience of the last few months:

"During the 1st containment, our regular customers turned to our website and social networks. Customers are coming to see us and realizing that we too are able to deliver quickly, with good prices and real advice! It's incredible to be able to use an e-commerce site with all the key features and be as up-to-date as the giants' sites... Especially for a traditional store used to one style of commerce."

If Internet sales exceeded 100 billion euros in 2019, 2020 is likely to set new records and ratify new buying behaviors.

This year, digital has become the indispensable way to consume. And the number of buyers delighted to be able to enjoy their product in full confinement is also increasing.

So let's save Christmas, postpone Black Friday and the winter sales, and make the most of the Pick Season.

If you can't go skiing, there are those who'll be surfing the year-end promotions, and those who'll be hitting the digital slopes. And these are tomorrow's big winners.