“Change is inevitable” – while this holds true for everything in life, the rate at which the retail industry is transforming is astonishing. Gone are the days where you would set up your shop and the consumers would visit you and make the purchase. Thanks to the technology improvements coupled with changing consumer mind-set, products need to be available to the customers at their convenience, anytime and anywhere. With the increase in competition and choices available to the customer, making sure your product is reachable and available to your customer as soon as the thought of your product pops up in their head has become necessary.
A lot has been written about the impending death of Brick & mortar and the rise of ecommerce. Most businesses have moved online and laid stress on making their supply chain agile to cater to this added sales channel. Ecommerce has proved to be a great revolution in the retail sector with its contribution towards sales and bringing about a smooth customer experience.
However, for FMCG companies, the story is a little different. Consumers of their product require instant gratification which is provided by the age old mom & pop store model. At the same time, they also demand the same smooth & hassle free experience provided by the Ecommerce model. The mix of these demands has pushed companies to move beyond its traditional ways. FMCG companies still focus on expanding their traditional distribution network for increasing sales and build a strong supply chain to support this model. In this entire process, they disconnect themselves from the most important factor – Customer’s voice.
FMCG companies which have adapted to the changes in customer demands and built their supply chain from the viewpoint of their customers have been most successful.. Automated retail and Digital Vending solutions is the way forward for FMCG companies. Not only does it increase the sales footprint, but also allows direct interaction with the customers – boosting sales, margins and customer experience.
Automated retail model has gathered a lot of attention lately due to its increasing contribution to sales. The vending machine earns nearly $20 Billion in revenue each year alone is USA. In fact, recently, a Digital Vending solution company bagged the biggest deal on the hit ABC show “Shark Tank”, representing how even the investors are looking at automated retail as the next big thing.
To make the customer experience smooth, vending machines are being made smarter through technologies that enable cashless purchase & interactions possible through a smartphone. For the FMCG company, this technology extends to optimizing the supply chain which enables timely stock refills, making sure they never lose out on a sales opportunity.
Consumers are not only buying the usual snacks & beverages from vending machines, but also some essentials such as sanitary napkins, contraceptives, etc. In Japan, you will probably find a vending machine for every type of product!
Embrace this transformation in the retail industry with Vendekin solutions! Learn more about Digital Vending by connecting with us at sales@vendekin.com
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