Via https://newsapi.org online business online marketing online business opportunities Walmart Challenges Amazon With “Less Is More” Strategy

Via https://newsapi.org  online business  online marketing  online business opportunities Walmart Challenges Amazon With “Less Is More” Strategy

Via https://newsapi.org online business online marketing online business opportunities

via https://newsapi.org  online business  online marketing  online business opportunities Holiday Shopping In Mountain View
NurPhoto via Getty Images

Walmart continues to bring differentiated offerings to the market in an effort to compete against Amazon, and it’s clearly no longer just about catching up. As the company merges in-store with online environments in ways that Amazon just can’t replicate, the company is hinting on its plan to take advantage of Amazon’s well-documented pain points, including shipping, workplace concerns, and environmental impacts while maximizing customer-centric models in the coming year. 

Last year, Walmart and others like Target leaned hard on the benefits of their massive store footprints, embracing buy-online-pickup-in-store (BOPIS) and curbside pickup options bringing customers closer to Amazon’s same-day delivery without the expense of shipping. Walmart even highlighted the growing importance of order pickup service in their first-ever Super Bowl commercial.

Heading into 2020, with ecommerce growth predicted to cool somewhat from 14.1% in 2019 to only 2% a year through 2023, it feels like Walmart is taking advantage of being ahead with specific initiatives that amplify customer experience, personalization and corporate citizenship against the Amazon landscape.

During NRF, John Furner, newly minted President and CEO of Walmart US, stated that, “The role of corporations has changed, and it’s not about simply creating shareholder value anymore, but creating great employment opportunities, making a difference in the environment, and adding value to the customer.”

In the coming weeks, I will be diving deep into how Walmart is twisting the dagger on Amazon by exploiting some of its most vulnerable pain points. This week, we discuss how Walmart is leveraging the “decision fatigue” many Amazon shoppers experience when trying to buy simple items on Amazon.

Fewer SKUs at Walmart

A few weeks back, Walmart U.S. President and CEO John Furner told NRF attendees that the company is focusing on a “simplification of the product line with a significant reduction in SKUs which it feels will cut down on decision fatigue for shoppers.” It was a simple, stand-alone point, and while he didn’t elaborate on this point throughout his discussion (or pique the interest of any reporters for follow-up), I think it is worth dissecting a bit.

Amazon has grown because of its ability to suggest personalized items to every shopper. It works well for shoppers looking for recommendations, but what about when a shopper needs to purchase an item quickly? The task of sorting through thousands of choices for seemingly simple, everyday purchases remains overwhelming for many.

The author in this recent article by Fast Company, “Why Having Too Many Choices is Making You Unhappy” put it well when he noted that his search for a toilet brush on Amazon’s site resulted in finding 1,161 kinds of toilet brushes. He states in the piece, “Nearly an hour later, after having read countless contradictory reviews and pondering far too many choices, I felt grumpy and tired and simply gave up. The next day, I happily bought the only toilet brush the local dollar store offered.” This recent Atlantic story references a similar experience buying hangers on Amazon. 

Hick’s Law states that with each new option you put before a user, the longer it will take them to process all of their choices. To see the fallout of this truth, you simply need to consider the growth of the subscription box market, which cuts decision making down to a simple decision of whether to keep an item or send it back.  

According to a study by Harvard Business Review, to understand purchase behavior, retailers should focus on the extent to which their target customers are motivated by pleasure or utility. For instance, consumers in a commercial area are more likely to be motivated by utility than consumers in a residential area, providing the store with the opportunity to carry smaller assortments and a wider variety of products overall. Stores located in vacation and tourist spots, where consumers are more likely to be seeking pleasure, might offer larger assortments of individual products.

The HBR author writes, “For retailers, understanding the dynamics of assortment is critical for attracting and keeping customers. The composition and size of assortments not only affects customers’ ability to find a product they like but also influences their decision to visit a store or website in the first place.”

BJ’s has also been implementing this approach in its stores, where it now says it is offering simplified assortments of fewer products in select categories, but more variety of the items they sell and creating more private labels. For example, in diapers, BJ’s has reduced brands from two to one, added a private label offering and is using the remaining space to market general items to young families. A separate reduction of SKUs in trash bags gave stores more room for mops and brooms.

When I came across this 2018 list of the most popular items sold on Walmart by state – most of which were everyday items like beverages, crayons, cat food and toothpaste, Walmart’s new approach really resonated.  Fewer items leaves space for more variety of items, and more private labels.

I also saw that Walmart is experimenting with curbside pickup, which would match well with everyday items, when it opened Walmart Pickup Point, a 40,000 square-foot prototype store outside of Chicago in Lincolnwood, Illinois. The goal is to cater specifically to customers’ online pickups and deliveries. Customers drive up to the site to designated parking spots, and a Walmart worker will load up their trunk with their order.

Jeff Bezos himself is well aware of how decision fatigue can weigh on a person. According to this article in QZ, he only makes three “high-quality” decisions a day in order to be more productive.

I recently sat down with Retales from the Frontline podcast host, Matt Rubel and Li & Fung’s President of Supply Chain, Sean Coxall to discuss the future of retail’s supply chain’s fast, responsive and customer focus. The importance of getting the right products to market faster and more sustainably is becoming top priority. Walmart’s plan to offer fewer items targeted to its consumer’s preferences also speaks to putting the consumer in the center of the buying experience, and meeting them with the products and prices they expect – without overwhelming them. It will be interesting to see how John Furner’s new strategy will transform Walmart and continue to drive positive change at Walmart in the coming months.

“>

via https://newsapi.org  online business  online marketing  online business opportunities Holiday Shopping In Mountain View

Walmart logo is seen at a store in Mountain View, California, United States on Tuesday, November 19, … [+] 2019. Thanksgiving and Christmas holiday shopping season has begun in the U.S. (Photo by Yichuan Cao/NurPhoto via Getty Images)

NurPhoto via Getty Images

Walmart continues to bring differentiated offerings to the market in an effort to compete against Amazon, and it’s clearly no longer just about catching up. As the company merges in-store with online environments in ways that Amazon just can’t replicate, the company is hinting on its plan to take advantage of Amazon’s well-documented pain points, including shipping, workplace concerns, and environmental impacts while maximizing customer-centric models in the coming year. 

Last year, Walmart and others like Target leaned hard on the benefits of their massive store footprints, embracing buy-online-pickup-in-store (BOPIS) and curbside pickup options bringing customers closer to Amazon’s same-day delivery without the expense of shipping. Walmart even highlighted the growing importance of order pickup service in their first-ever Super Bowl commercial.

Heading into 2020, with ecommerce growth predicted to cool somewhat from 14.1% in 2019 to only 2% a year through 2023, it feels like Walmart is taking advantage of being ahead with specific initiatives that amplify customer experience, personalization and corporate citizenship against the Amazon landscape.

During NRF, John Furner, newly minted President and CEO of Walmart US, stated that, “The role of corporations has changed, and it’s not about simply creating shareholder value anymore, but creating great employment opportunities, making a difference in the environment, and adding value to the customer.”

In the coming weeks, I will be diving deep into how Walmart is twisting the dagger on Amazon by exploiting some of its most vulnerable pain points. This week, we discuss how Walmart is leveraging the “decision fatigue” many Amazon shoppers experience when trying to buy simple items on Amazon.

Fewer SKUs at Walmart

A few weeks back, Walmart U.S. President and CEO John Furner told NRF attendees that the company is focusing on a “simplification of the product line with a significant reduction in SKUs which it feels will cut down on decision fatigue for shoppers.” It was a simple, stand-alone point, and while he didn’t elaborate on this point throughout his discussion (or pique the interest of any reporters for follow-up), I think it is worth dissecting a bit.

Amazon has grown because of its ability to suggest personalized items to every shopper. It works well for shoppers looking for recommendations, but what about when a shopper needs to purchase an item quickly? The task of sorting through thousands of choices for seemingly simple, everyday purchases remains overwhelming for many.

The author in this recent article by Fast Company, “Why Having Too Many Choices is Making You Unhappy” put it well when he noted that his search for a toilet brush on Amazon’s site resulted in finding 1,161 kinds of toilet brushes. He states in the piece, “Nearly an hour later, after having read countless contradictory reviews and pondering far too many choices, I felt grumpy and tired and simply gave up. The next day, I happily bought the only toilet brush the local dollar store offered.” This recent Atlantic story references a similar experience buying hangers on Amazon. 

Hick’s Law states that with each new option you put before a user, the longer it will take them to process all of their choices. To see the fallout of this truth, you simply need to consider the growth of the subscription box market, which cuts decision making down to a simple decision of whether to keep an item or send it back.  

According to a study by Harvard Business Review, to understand purchase behavior, retailers should focus on the extent to which their target customers are motivated by pleasure or utility. For instance, consumers in a commercial area are more likely to be motivated by utility than consumers in a residential area, providing the store with the opportunity to carry smaller assortments and a wider variety of products overall. Stores located in vacation and tourist spots, where consumers are more likely to be seeking pleasure, might offer larger assortments of individual products.

The HBR author writes, “For retailers, understanding the dynamics of assortment is critical for attracting and keeping customers. The composition and size of assortments not only affects customers’ ability to find a product they like but also influences their decision to visit a store or website in the first place.”

BJ’s has also been implementing this approach in its stores, where it now says it is offering simplified assortments of fewer products in select categories, but more variety of the items they sell and creating more private labels. For example, in diapers, BJ’s has reduced brands from two to one, added a private label offering and is using the remaining space to market general items to young families. A separate reduction of SKUs in trash bags gave stores more room for mops and brooms.

When I came across this 2018 list of the most popular items sold on Walmart by state – most of which were everyday items like beverages, crayons, cat food and toothpaste, Walmart’s new approach really resonated.  Fewer items leaves space for more variety of items, and more private labels.

I also saw that Walmart is experimenting with curbside pickup, which would match well with everyday items, when it opened Walmart Pickup Point, a 40,000 square-foot prototype store outside of Chicago in Lincolnwood, Illinois. The goal is to cater specifically to customers’ online pickups and deliveries. Customers drive up to the site to designated parking spots, and a Walmart worker will load up their trunk with their order.

Jeff Bezos himself is well aware of how decision fatigue can weigh on a person. According to this article in QZ, he only makes three “high-quality” decisions a day in order to be more productive.

I recently sat down with Retales from the Frontline podcast host, Matt Rubel and Li & Fung’s President of Supply Chain, Sean Coxall to discuss the future of retail’s supply chain’s fast, responsive and customer focus. The importance of getting the right products to market faster and more sustainably is becoming top priority. Walmart’s plan to offer fewer items targeted to its consumer’s preferences also speaks to putting the consumer in the center of the buying experience, and meeting them with the products and prices they expect – without overwhelming them. It will be interesting to see how John Furner’s new strategy will transform Walmart and continue to drive positive change at Walmart in the coming months.

Read More

Be the first to comment on "Via https://newsapi.org online business online marketing online business opportunities Walmart Challenges Amazon With “Less Is More” Strategy"

Leave a comment

Your email address will not be published.


*