October 28, 2019
Branding Industrial – Contemplating a shift to a consumer-facing fulfillment model
“Without change there is no innovation, creativity, or incentive for improvement. Those who initiate change will have a better opportunity to manage the change that is inevitable.” -William Pollard
Change is inevitable and over the last decade, many brick-and-mortar retailers failed to recognize the fundamental shift taking place from traditional retail model operations to an infrastructure network designed to capitalize on supply chain efficiencies while driving down costs. During the same time period, online shopping and convenience became drivers of purchasing power in the consumer base, birthing many online retailers who still need a physical presence and point of distribution for their consumers.
It is looking like next-generation consumer engagement is likely to extend retail’s physical footprint via numerous partnerships, channels, store formats, and mobile applications into a retail universe of endless aisles combined with inventive experiences designed to entice customers back into stores on a regular cadence. We have to be out in front of this change, developing projects that reach both to the businesses’ needs right now while also understanding the future needs of the customer.
What we know about consumer mentality
Today’s customers not only crave convenience and speed with deliveries, but also expect it. Being near the majority of customers or located near major hubs or metro areas can reach large volumes of customers, will help ensure shoppers get the quickest turnaround time possible.
Consumers have been conditioned to expect fast, convenient, and effortless consumption. Speed, price, location, and quality are key. Right place, right time availability.
Scores of consumers demand effortless shopping experience across channels and have become increasingly intolerant toward perceived inefficiencies. A recent Deloitte study revealed more than 40 percent of customers are discouraged from shopping at physical stores due to crowds and long lines, especially during busy seasons – while another 40 percent of savvy shoppers will likely cut through busy checkout lines while in-store by placing orders through the “buy online and pick up in store” (BOPUS) option and using payment apps – essentially taking advantage of the best of both worlds.
Differentiation will play a larger future role in the battle for market share as consumers have shown a marked preference for convenience over price as everyone discounts.
A look into the crystal ball
We believe that M2G’s experience in retail, industrial and mixed-use, combined with our knowledge of what consumers truly want, makes us uniquely qualified to be the Landlord who understands the crucial in-store experience and that every consumer touchpoint is equally important. We are working toward thoughtfully developing industrial in such a way that consumers will want to interact with our clients’ brands on every level. We recognize that change bring challenge, but we are poised to be methodical in how we innovate, making small tweaks at a time that will eventually make a major impact in how the consumers, retailers, and clients views industrial development.