This document discusses how digital and physical retail are converging for food and consumer goods companies. It notes that traditional retailers are setting up physical store presences to complement growing ecommerce operations in order to provide richer customer experiences. Specifically, the document cites a study that found $689 billion in sales were "digitally influenced" in 2015, with $327 billion in direct ecommerce sales, showing the importance of an integrated online and offline retail strategy. It raises open questions about how consumers want to buy online and what retail strategies can best support this.

1. We help companies find growth opportunities as traditional and digital
retailing converge for food and other fast moving consumer goods.
Why are digital
& physical retail
converging?
By Bill Bishop, Chief Architect, Brick Meets Click
April 21, 2015

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What do you see?

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Today’s digital experience
Convergence of
Broadband/4G
Mobile penetration
Social media/networking

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Time on mobile

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Amazon Prime
“I bought all of
the kid’s school
supplies online
while driving
home from
vacation.”

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Some shoppers have gone 100%
“I needed a new
gray t-shirt and, in
5 clicks, I got one
on my phone over
lunch – Thanks
Zappos!”
“I buy all of my shoes and
clothes online now.”

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3 surprising ways ecommerce creates
value
3. The search (a.k.a. browsing)
delivers entertainment
2. Removes
barriers to entry
= customers get
more options
1. Can actually
increase the price
– a $.25 book can
be worth $50

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Why does ecommerce set up a
physical presence?
To make completing
the transaction easier
What do I want to buy?
Try it on
Get it now Broaden
base of
customers
Richer
feedback &
interactions

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90% of people who
buy glasses in Warby
Parker stores have
been to the website
first.
Chicago Tribune - April 13, 2015

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Ecommerce & food retail
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1st Generation
Dot.com
explosion
Post bubble
Burst of Creativity
New forms of
competition

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Harnessing contextual selling
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15. $689 B
$327 B
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“Digitally influenced” sales are BIG
$327 billion in the blue cog represents estimated ecommerce sales for 2015
$689 billion in the red cog represents the “digitally influenced” sales for 2015 per a Deloitte study

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New Services
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Shopper
Retailer

19. How do
consumers
want to buy
online?
Open questions
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What will be the retailer’s strategy that
supports it?

20. “The future of retail is not about
either ecommerce or bricks and
mortar, it's a fusion of the two."
Neil Blumenthal, co-founder & co-CEO Warby Parker
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