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News Article

Providing Visibility, Order in an Expanding Market

By Cinthya Alaniz Salazar | Thu, 11/11/2021 - 12:35

You can watch the video of this presentation here.

 

The commercial environment changed drastically during the age of digitalization and while it expanded businesses’ market access, it also reduced their viability as more business avenues spring up. In recognition of this problem, VTEX created an omnichannel solution and pathway toward unified commerce for the complete centralization of business data currently dispersed across various third-party platforms.  

"The unified customer's strategy focuses on creating a shopping experience that fully meets the needs of new consumers," said Ricardo Rodríguez, Vice President Enterprise Sales, VTEX Mexico & Central America.

The commerce market has rapidly expanded outward from physical stores to the internet, various social media platforms, marketplaces and most recently livestreams. While this horizontal expansion has made commerce more complex, thriving is not impossible, argued Rodríguez. Through the collection and centralization of data related to business assets and consumers, companies will effectively gain greater visibility and control over their business, starting with more seamless operations and distribution. Companies will also be able to recur to a greater pool of consumer data needed to understand changing consumer preferences, tailor intelligent company campaigns and take informed business decisions. Holistically this will increase running efficiency, thereby allowing business to focus on innovation instead of logistical lags and data collection. This is particularly important in a market that will keep changing in response to an evolving consumer.

In the age of digitalization, consumers have evolved, making the traditional price market obsolete. Today’s consumer is not the passive consumer that singularly focused on the lowest price while waiting for the market to provide them with solutions. Present consumers are informed and self-aware, they assess quality in relation to price, are not afraid to create market solutions where they are absent and genuinely care about how products are made and how they impact the environment. In acknowledgement of this market shift, the objective is to create a shopping experience that satisfies the expectations and needs of the informed consumer. Before this can be achieved, however, companies need to know who and where their consumers are, which can be difficult if consumer data remains out of reach and uncoordinated.

The most pressing consumer need is thankfully actionable, as it relates to internal monitoring and diversifying consumer payment options. "More than 40 percent of unfulfilled sales are due to stockouts or because the company was not able to provide additional buying options," said Rodríguez. Without the ability to easily track internal assets, companies have inadvertently shut themselves out of certain transactions because of stockouts, which could have informed secondary decisions about price increases, mobilizing production or suggesting similar products if they had been identified earlier. Moreover, companies with limited payment options have shutout new potential consumers.

Overall, in a complex and horizontally expanding commerce market, the centralization of data offers companies greater visibility and control over their business to better access new consumers.

Cinthya Alaniz Salazar Cinthya Alaniz Salazar Journalist & Industry Analyst