Dot brand and large-scale retailing (5/5): overcoming new logistics challenges

The large-scale retail model has faced fierce competition for a number of years now on several fronts. The first, presented in greater detail in our full study, comes in the form of hard discount and organic stores, while the second comes from Pure Players such as Amazon and Cdiscount. Given their logistics and service strengths, these digital natives are now setting the standards for large-scale retailing chains, who have no choice but to work strategically on improving their logistics processes in order to develop a range of e-services.

In this series of articles taken from the dedicated study, we will set out five key challenges we feel brands in this sector need to overcome to remain competitive and pursue their development, and will look at to what extent a dot brand provides the answer.

In the previous article, we talked about personalising the customer experience and developing proximity. In the fifth and last post of this series, we will focus on the new logistics challenges that large-scale retailing brands need to overcome.

New logistics and service standards based on the use of promising technologies

Adjusting a service offering to the growing spread of online consumption requires specific technological skills to be mastered and deployed. To adapt to their customers’ new practices, large-scale retailing chains are increasingly partnering with or acquiring organisations that have these skills. In this respect, the Internet of Things (IoT), machine learning, artificial intelligence and augmented reality are amongst the most in-demand technologies. These tools are giving rise to new innovative concepts that make it possible to better understand consumers’ needs and to meet them more easily and more quickly.

The example of China in this respect is interesting. We can hone in on the “Online Merge Offline” concept introduced by the Alibaba group, for example, which builds on the digitalisation of the buying journey and proposes an omnichannel experience through mobile apps. The Chinese giant has developed new services allowing for a seamless buying experience (common sourcing system between points of sale and its mobile application “Smile to Pay”, logistics organised to ensure delivery from the producer to the end customer, etc.) that we present in detail in our study. The holder of several dot brand TLDs, Alibaba is a pioneer in the use of this tool which it uses to strengthen the security of its buying journey.

A dot brand: a tool capable of playing a pivotal role in meeting new logistics challenges

For example, by offering a unique identification solution thanks to DNS technology, itself linked to the Internet of Things, the brand TLD can help simplify management of all the stages of the logistics chain, from procurement to delivery of the order. DNS technology is an identification technology known for its resilience. In association with a brand TLD, it would contribute to securing the logistics chain.

Besides, and more visibly for the consumer, this identification solution can also allow certain categories of products to be referenced with a URL, access to which is made possible via QR code. This proves particularly useful for articles associated with other products or services, such as products with accessories needing regular replacement or products under warranty. User orders are thus facilitated and the brand’s potential for upselling and cross-selling is enhanced.

Download the full study “Brand TLDs and large-scale retailing: 5 key challenges solved by a dot brand”

This article is an extract from the full study which presents:

• A situational analysis of large-scale retailing in France
• A focus on the brands with their own TLDs in this sector
• 5 key challenges faced by these brands which can be solved by a brand TLD

Download the study “BrandTLDs and large-scale retailing:
5 key challenges a dot brand can help overcome”