Magazine: O2O: offline retail opening to online

Experts say that by 2021 e-commerce’s share in global retail trade can reach 75 percent, which would mean a value of several hundred billion dollars.

A recent study has revealed that the majority of shoppers gather information online before buying a product in a physical store. At the same time online shoppers also want physical contact with the product. This is where ‘online to offline’, O2O comes into the picture: it is the next phase of retail that involves more channels, when retailers offer a harmonised shopping experience to customers offline and on different online platforms.

One of the biggest advantages of O2O is simpler and more efficient branding by advertising on online platforms, and by using social media and mobile platforms – plus with the real-time data analysis of these, combined with artificial intelligence. Another advantage of this strategy is that shopper loyalty and sales revenue can be increased at the same time.

Today the biggest players such as Amazon and Alibaba are thinking of O2O as the next development phase in e-commerce. Since 2016 Alibaba has invested more than USD 8 billion in building physical stores. In the same year Amazon announced that they would open more than 2,000 brick-and-mortar grocery stores in the USA, where there would be no cash register, and artificial intelligence technology and sensors would monitor customers shopping.

New format and in-store digital services from Ahold Delhaize

Ahold Delhaize introduced a new store format in Belgium, which offers fresh, instantly consumable and balanced diet based foods, fresh fruit juices and soups, plus numerous digital services, e.g. placing online orders in-store. Nine such store open this year and their number will grow to 36 by 2019.

PLMA Private Label Trade Show, 11-13 November – Chicago, USA

PLMA Private Label Trade Show took place in Chicago between 11 and 13 November. Last year there were more than 11,200 participants at the event. This time 1,500 companies were present with more than 2,800 stands, covering practically all food and non-food categories.

Online transparency with blockchain technology

Albert Heijn in the Netherlands and Carrefour in Italy have started using blockchain technology: thanks to the online supply chains system, shoppers can check the path of products from the source to the store.

Rewe opens an online logistics centre

Rewe has invested EUR 80 million in building a modern logistics base that will serve the company’s online grocery retail operations. The investment was needed very much, as last year Rewe’s online FMCG sales were developing fast, exceeding EUR 100 million.

EU acts against double standards in food quality

EU member states wish to end the selling of double-standard foodstuffs. Currently the European Commission is dealing with a report that calls for cooperation between consumer protection and food authorities and consumer associations, so that fast cross-border information exchange becomes possible between member states in this domain.

Boots opens online shop in China

Boots opens an online shop in China, on Alibaba’s Tmall Global platform. At first Boots will make its leading brands – No7, Soap&Glory and Boots Cucumber – available to Chinese customers, who want high-quality beauty care brands.