We now live in the Commerce Everywhere era. Purchases can be made anywhere and at any time - and an ever-increasing proportion of these purchases take place online.
In 2019, the share of e-commerce in total retail sales worldwide was only 13.8%. In 2021, it had already reached 19.6%, and
by 2025 this figure is expected to be almost 25%
. In contrast to the American and Asian e-commerce markets, the European market is highly complex, competitive and fragmented in terms of languages, platforms and habits. When dealing with the multiple challenges posed by selling online, tasks rise quickly to a level which makes manually tracking of product performance data nearly impossible. Brands and retailers are left helpless. This is where the Digital Shelf Analytics 2.0 concept comes into play. Our CEO,
Mickael Froger, gives his vision and thoughts on the topic.
I start with an observation that seems banal at first glance: commerce is literally everywhere today. Customers can purchase products anytime, anywhere - no matter where they are, no matter what time it is, no matter what channels they are on. It is important to keep this simple fact in mind. Brands need to respond to it, but not all of them do. One particular observation over the last years and months is that
online marketplaces are definitely on their way to replace the department stores of the 20th century. The way consumers shop and discover products online has led to a boom of marketplaces.
Everyone is into these platforms: retailers want to become marketplaces, brands must sell on marketplaces and shoppers prefer marketplaces. It is now estimated that by 2024,
more than 2/3 of all online B2C sales will take place on these platforms. We are also seeing this with our brands and retailers at Lengow who are relying more and more on marketplaces. Accelerated direct-to-consumer (D2C) strategies play a role here.
This D2C model is in fact very compatible with the marketplace model. On the other hand, technology, analytical capacity and adaptability are becoming increasingly important in the market. If you want to succeed in ferocious e-commerce competition then speed and scale are the key elements that can make a difference.