ADVICE
E-COMMERCE TIPS
How can retailers overcome the
omnichannel challenges?
Consumers’ demands on retailers have intensified in the past decade. Previously, having an online store
to accompany your physical shop was seen as a luxury, now it is essential and online shopping has taken
the next step to meet customer demand. DEAN FREW, CTO & SVP, for RFID Solutions at SML Group,
explores how indies can rise to the challenge
CHRISTMAS 2016 WAS THE SEASON FOR
OMNICHANNEL
The brands that have implemented an effective
omnichannel strategy have reaped the rewards.
Throughout the 2016 Christmas period retailers such
as John Lewis, Marks & Spencer and Sainsbury’s all
reported an increase in profit over the festive season;
with many seeing an increase in customers using their
click and collect services.
For example, John Lewis reported a continued shift
to mobile and multichannel purchases. The retailer
reports that 52% of all online purchases were picked
up in store with a further 18% choosing to collect
from sister supermarket Waitrose. Additionally, multi-
brand online retailer, Shop Direct announced that
more than a quarter of 6.8m online orders were picked
up from collection points in the UK.
With more retailers reporting their performances
in the run up to Christmas, the evidence is becoming
clear that those who offer omnichannel experiences
have an edge over the competition. Whilst we can
expect more brands to adopt similar strategies to
maximise on peak shopping times, many retailers
have long struggled with implementing a cohesive
and efficient omnichannel process due to a lack of
confidence in stock and a lack of understanding of
their customers’ needs.
So how can retailers ensure that they leave their
omnichannel challenges as a thing of the past and
embrace omnichannel sales?
56 JEWELLERY FOCUS
EMBRACING NEW TECHNOLOGIES THAT HELP
THEM LEAVE INACCURACIES IN THE PAST
Essentially omnichannel is all about delivering items
from various layers in the supply chain to consumers
across whichever channels the customer prefers and
as a result retailers and brands can service customers
better and build a deeper loyalty. Most retailers
who have fully embraced omnichannel understand
that servicing consumers in this new era of retailing
hinges on understanding inventory accuracy and
creating business rules around the realities of the
inaccuracies that exist. Without up-to-date and
correct information, omnichannel is simply an ill-
conceived promise they won’t be able to deliver on
and thus disappoint customers.
Some retailers are still using a 5:1 rule for fulfilling
omnichannel orders which, understandably, can leave
the CFO of the retailer disappointed because to solve
the problem it is just bloating inventory levels.
On the other side it oftentimes still leaves the
consumer disappointed as well when they discover the
item they ordered online isn’t available to pick up from
the store that day. In order to be truly omnichannel,
retailers need the confidence in their stock accuracy. It is
not uncommon for an apparel retailer to have inventory
accuracies in the 70% range at the sellable unit level.
The brands that have seen the most success with
their omnichannel experiences are those that have
welcomed a new mindset to the technologies that are
in place. Many retailers are hesitant, for whatever
reason, to move to newer innovations that can
simplify and better processes, such as taking accurate
stock counts. However, those that continue to hesitate
could find themselves left behind in the race to meet
consumer demands.
Technologies such as item-level RFID have addressed
the challenges of inventory management with the
collection of more accurate and timely inventory
data which retailers can use to make higher impact
decisions to match customer demand. Furthermore,
retailers are able to use the technology to gain better
‘‘
As the
demand for
omnichannel
has increased,
retailers need
to shift their
focus on their
own strategies
around
inventory
management
to ensure they
are keeping
up with their
customers’
needs in 2018
‘‘
C
onsumers want the ability to shop seamlessly
across multiple devices anytime anywhere.
What’s more, they want more than the promise
of next day delivery and to have the opportunity to
order online and pick up in store the very same day.
As the customers ask for more, retailers are
struggling to keep up and falling behind in investment
in the appropriate technologies that will allow for
complete visibility of inventory, to enable pickup in
store options and effective omnichannel experiences.
February 2018 | jewelleryfocus.co.uk