Page 41 - Strategic Marketing Complete

SUPPLY CHAIN

- Images courtesy of Smollan

Smollan believes a common mistake It’s a view shared by Smollan. “Non- “At the same time, we’re seeing
is “underestimating the complexity store retailing will take share from a number of online retailers
of representing a brand inside a the physical store, in Africa as well beginning to open up physical
retail environment”. Getting the as the rest of the world, but what we stores. What we’re seeing is the
product to the back door of the store are seeing is how physical retailers blurring of the lines between
requires certain capability, systems, are blending business models and online and offline, as retailers and
processes and infrastructure, he evolving the store to meet the needs brands grapple with a world where
says. of the consumer,” he says. shoppers are increasingly operating
in an omni-channel way. I do believe
“The capabilities are not “Some retail formats will take that store environments will change
transferrable from one discipline to more of a knock than others, fundamentally; in all likelihood
another. Many have underestimated such as hypermarkets, but small they will become smaller, more
the difference between managing a store formats and discounters experiential and more technology
fleet and managing teams of people will continue to grow and serve a enabled.
who need to complete a combination purpose for consumers, as well as
of simple and higher order tasks, playing a critical role in the supply “This will have an impact on how
like selling.” chain as stores start to take on the brands are merchandised, on
dual purpose of retail outlet and in-store ranging and on how we
The impact of e-commerce distribution centre. Woolworths in engage with shoppers in a physical
Of course, the continued growth South Africa is using this model, for world. However, it should be noted
of e-commerce will also impact example.” that merchandising doesn’t only
on brick and mortar retail, and apply in a physical environment.
how brands are distributed and According to Smollan, there are Digital merchandising is as much of
merchandised. The ongoing growth hugely disparate degrees of a foundational requirement online.”
of Amazon, for example, indicates progress in e-commerce across
the global giant takes Africa very country and category. “Will In the meantime, says Page-Lee,
seriously indeed. e-commerce take share from brick “As long as the brick-and-mortar
and mortar? Yes. Will it mean retail industry exists, the need for
In a recent BizNews interview, Geoff the death of brick and mortar? the integrated offering will remain,
Brown, the Sub-Saharan Africa Absolutely not. Using the Amazon irrespective of size of retailer, or
Regional Manager for Amazon Web example, I don’t believe they’d number of stores.”
Services, said Amazon was “super have bought Whole Foods in the
pleased” with how fast the business US if they thought that this was the
has grown in the region: “We’re case. In many ways, they’ll play a
actually seeing now an acceleration pivotal role in shaping the future of
upwards, even faster from adoption.” e-commerce,” he reckons.

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