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Omni-channel in Brazil

Omni-channel is a worldwide retail trend and an ideal pursued by companies in all countries. However, experts say that there is still no company in the world that is completely omni-channel, that is, no organization allows the customer to move fluidly and without barriers between all existing sales and service channels.

In Brazil, we are even further away from this concept and what we see so far are isolated omni-channel initiatives. This, however, does not mean that Brazilians do not want this from the stores present here. In the survey “Habits of Shopping and Mobile”, published in the 32nd Webshoppers report developed by e-bit, it was pointed out that many consumers in the country are using smartphones inside physical stores, whether to compare prices, search for information or even buy the product. This habit, detailed in figure 1, is an example that Brazilians are already relating to the brand through different channels simultaneously, indicating to retailers here the need to work towards the omni-channel.

Figure 1 – Activities inside the physical store via mobile device

Source: e-bit survey – shopping and mobile habits, June 2015

One of the first examples of omni-channel in Brazil came from banking companies. Many banks already offer good experiences in this regard for customers, allowing them to interact with the company and obtain updated and integrated account information through the website, smartphone or tablet application, cell phone SMS, telephone, self-service or customer service totems. physical in the agencies. In retail, however, there is still nothing similar in the country.

One of the first retailers to introduce an omni-channel initiative was sporting goods store Centauro. For some years now, the SBF Group company has offered customers the possibility of buy a product online and exchange it in a physical store (Figure 2), one of the omni-channel requirements.

Figure 2 – Centauro in-store exchange service for a product purchased online

Source: Centaurus

 

Another example of an omni-channel initiative also comes from the sporting goods segment: Adidas. Understanding that more and more people go to physical stores just to discover and try the products – a phenomenon known as showrooming – the German company made available in its virtual store the possibility for the customer to check the availability of the product of interest in the nearest physical stores, as shown in Figure 3. After entering the zip code of their location, the customer is able to see which stores are closest to him and whether or not the product is available in the store for him to try.

Figure 3 – Adidas service to check the availability of products in the physical store

Source: Adidas

 

The possibility of buying a product online and picking it up at the store is another requirement for achieving omni-channel and is an initiative already adopted by some large companies such as Extra (withdraw extra), hail (receive in store) and Fnac (pick up in store), allowing customers to purchase the product at any time, save delivery freight and not have problems with availability to receive the courier.

In the last week, another large national retailer showed signs that it will move in the direction of Omni-channel. Magazine Luiza changed its CEO and the new occupant of the position mentioned some changes that will happen in the company in the coming months: all physical stores will have Wi-Fi, service in stores will be handled by smartphones (in an application the seller will see information on product registration, customer registration, navigation flow, relationship, pre and post-sales), there will be greater interaction between sellers and customers on social networks, stores' inventories will be integrated into the company's eight distribution centers and Magazine Luiza will start offering the collection of products purchased online at physical stores.

Some advances have already been made to reach omnichannel in Brazil, but the path is still long:

  • Many retailers still see the virtual store as a competitor to the physical store. Cases of aggressive attitudes by sellers towards customers who claimed to be in the store just to try out products that they would later buy online are not rare. What should happen, however, is the opposite, since what is important is strengthening the brand and selling the product, regardless of the customer contact channel;
  • Most companies think that multi-channel is synonymous with omni-channel and believe that just launching applications and creating profiles on social networks is enough, which is a big mistake. To achieve omnichannel, it is essential that there is complete integration between all sales channels, allowing the customer a unique shopping experience;
  • Stores need to have an adequate assortment of products for customers to try and a location that allows them to do so comfortably;
  • Physical stores and CD's need to prepare to perform operations that are not currently done, such as separation and delivery of fractional orders directly to the customer;
  • Companies need to invest in systems capable of processing large volumes of data (Big Data), allowing all interactions made by the customer with the company – whether in the virtual store, mobile application, social networks, telephone or physical store – to be analyzed in real time and generate personalized recommendations and offers.

No company, whether in Brazil or worldwide, has been able to carry out all these initiatives in a way that is satisfactory for the customer and efficient from an operational and cost point of view. However, the path towards this is starting to become clear and enabling mechanisms are being developed. More and more we will see companies introducing new omni-channel solutions!

 

References

<http://img.ebit.com.br/webshoppers/pdf/32_webshoppers.pdf>

<http://exame.abril.com.br/negocios/noticias/com-novo-ceo-magazine-luiza-quer-ser-o-novo-ebay-brasileiro>

<http://www.emobile.com.br/site/varejo/omnichannel-magazine-luiza/>

More than 11 years of experience in training and consultancy projects, focusing on Logistics and Supply Chain. In consultancy, he carried out projects such as Transformational Logistics Plan, Diagnosis of logistics operations, Strategy and Calendarization of Transport Operations, Measuring the Cost of Serving, Market Study, Mapping of Inventory Reduction Opportunities, Review of the S&OP Process, Management Plan Training and Implementation of Commercial Processes in companies such as Nestlé, Raia Drogasil, Ipiranga, Lojas Americanas, B2W, Coca-Cola, Andina, Embraco, Martins Atacado, Loja do Mecânico, Santo Antônio Energia, Ecoporto and Silimed. She is currently one of the teachers of the Inventory Management Course taught every six months by ILOS. She worked on the development and management of Online Courses in Logistics and Supply Chain, Supply Processes, Demand Planning, Inventory Management and Industrial Management. Still in the training area, she was responsible for applying ILOS business games in companies such as Raia Drogasil, Fibria, NEC, Novartis and Moove.

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