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Journal du Net, France: Cognizant’s Chief Digital Officer and Global Consulting Leader, Retail, Consumer Goods, Travel and Hospitality, Discusses the Impact Amazon’s 4-Star Concept may have on Retail

“Amazon is not alone in promoting the return of customers to physical outlets,” says Scott Clarke. “The increasingly acrimonious competition on the Internet is pushing brands to fight tooth and nail to stay as close as possible to their customers. In doing so, they highlight the role that a physical presence can play in offering the immersive experience that is lacking on the Web.”

Excerpts from Journal du Net’s article:

“In June 2018, Carrefour announced the closure of 243 stores. This announcement is only a reflection of a more general phenomenon. In this context, the retail sector needs to reinvigorate itself.

One of the possible solutions could be the concept store 4-star , opened by Amazon in New York. Its name clearly announces the concept: all products on the shelf have a rating of four stars or more on their website. The goal is to restrict Amazon's wide range of products on the Internet to a simple selection of items that customers can actually touch and see, rather than surfing the web.

This physical store is part of a wider movement of valuing the level of trust granted to customer reviews. It also reaffirms the idea that, despite the advances made by online sales, it is now essential to have both a physical presence and the Internet to be able to succeed in the current market. Whatever the media say, physical outlets remain at the heart of the distribution. This is because most purchases are made and the buyer is strongly influenced in his decision. A large number of improvements will also be made to ensure a good customer experience and expand the number of outlets. Over the next five years, for example, non-cash stores may well be the norm.”

Click here to read the original article in French.

Cognizant ConsultingRetailRetail, Consumer Goods, Travel & Hospitality

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