The big brands, large companies and large online operators are creating data-based infrastructures (we are talking about Big Data and analytics related to marketing) and operating methods that, certainly in the near future, could contribute to influencing the entire market of 'eCommerce.
Already today the data of traditional trade are available to few operators as buying them really costs a lot and therefore there are few companies that can afford a constant contribution of market analysis.
But the small clubs and all the other structures that have nothing to do with the GDO (clothing stores, household items, DIY, delicatessens and refreshment points) are not, to date, detected with a decisive reliability of the data as is the case in the GDO world.
But with eCommerce, everything will take on another scope, and do you know why?
Because more commercial activities will land online and more data will be tracked in the various monitoring systems, and here even those small shops that until yesterday no one detected, will take on a much heavier importance, depending on the data that will be worth a lot.
Second eMarketer, Internet retail sales in 2020 have increased by 27.6% worldwide since 2019, reaching an estimated $ 4.28 trillion.
Latin America eCommerce sales increased by 36.7% in 2020, as well as North America online sales increased by 31.8% as both regions outperformed the rest of the world in eCommerce growth.
We invite you to read the statistics eCommerce in Italy of 2020 to be able to go and watch what happens in our house.
There disruption, which is taking place in the last year and will continue for the next five years at a fast pace, will see a development in the sector and the closure of physical stores linked to the pandemic has forced many companies, even small ones, to shift their attention to online sales .
“A large number of large companies, and generally speaking of all the big brands known today, have actually built a very data-centric culture. They often buy studies and data from Nielsen and IRI (the companies we mentioned earlier) ”; this is what Mike Black, chief marketing officer of Profitero, a company that deals with eCommerce data analysis.
As the pandemic forced them to adjust the way in which retail purchases were made, many of the big brands defined by Black were quite behind in the world ofe-commerce and also in the collection of information. Here is how all these events have contributed to change the scenarios, both by accelerating the implementation of eCommerce stores for those who did not have them, to improve the infrastructures of those who already had them, but also the attention to data has changed and it is changing more and more rapidly.
What we see now is that a lot of big brand names (like The Procter & Gamble Company as well as Unilever as well) are buying advanced analytics to win the e-commerce game. We see eCommerce groups and also data analysis groups starting to grow at a wonderful pace and in scale as they recognize the substantial possibility of leveraging their economic resources to invest in this sense to also establish themselves in the online market.
This was stated by Black, who, in addition to Califia Farms Vice President of eCommerce Halee Patel Newton, was speaking during a real-time meeting for CommerceCo of Practical Ecommerce on May 27, 2021.
Large organizations that buy big data and analytics to operate on Big Data and Marketing have the potential to alter the "competitive context" of the sector, again according to Black but obviously also according to us, who said that the information from the study shows that brands using performance analytics often tended to outperform their overall industry ranking up to 70%, but this considering that only about 20% of all brands use such analytics.
And in all this we are not considering all that myriad of small businesses that have never been tracked (except in unreliable ways) and that instead now, landing online, can contribute to pouring out a sea of data, ready to go to integrate the analyzes already available to those who can afford them.
Perhaps relatively small companies and some brands that market through the typical retail service and even small retail chains do not have the budget for efficiency analyzes and to create a data driven strategy as they say. from the data, or simply the staff to release them adequately or to be able to manipulate them.
We also consider that the competition in the world of Big Data and Marketing does not play its game exclusively on the producers side (like the examples we have done before), but also on the distributors side, whether large or small.
Considering all that we have just said as current and future, this could create a sort of "arms race" of eCommerce data or analysis, in which companies with the economic means available will be able to acquire them to use them more efficiently and obtain a considerable advantage, over those who do not see data as a problem to be addressed.
With the data aggregated and processed by “skilled hands and eyes” it is possible to have a competitive advantage over one's competitors.
It is good to cite a high-sounding example precisely to support the thesis that knowing "the right numbers" is fundamental and, increasingly, Big Data and Marketing are the right interpretation of the future in data.
Califia Farms is a company that produces niche products in the world of food and, according to what was declared by one of its leading exponents, Mr. Newton - vice president of the eCommerce business unit, the company just got to experience this kind of benefit.
For many brands during the time of the pandemic, Newton said: “The requirement was to lean directly on e-commerce, regardless of whether you were rewarding or not. We had to take a step back and also understand where we could be convenient ”.
Califia Farms' products were doing well online. Newton wanted to understand exactly how his company was treating its customers who are obviously coveted by the competition. He had that information.
Many of Califia Farms' products are nut-based refrigerated milk. The company also has several products that are “shelf products”: they do not need to be refrigerated and therefore are also suitable for e-commerce without having to have a cold chain to support them.
Using the efficiency analysis, the company was able to recognize a very popular push for long-life milk and cream.
"Everyone wanted it," said Newton.
“When we saw that search term increase on Google or Amazon, we thought: 'No other brand is investing in this now. Let's see what happens when we rely on marketing on that specific term '”.
And here is what was expected.
Califia Farms had immediate results, improving the sales of those long-life items as a direct result of having an exact understanding of what potential customers needed at the time.
Although the company is a small brand alongside its bigger competitors, it has been able to use the data to gain an edge in a specific niche product group.
The essential conclusion of both Newton and Black (but of course ours too), is that those who sell online should always be able to interpret the data to gain positions in their own market niches.
To do this, having a Big Data and Marketing system linked to Analytics is now essential.