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Market Snapshot

Transformation Imperatives for the Wholesale Distribution Industry

Q4, 2021

Be it the “Amazonification of Everything” or the increasing frequency of disruptions such as COVID-19 and or port blockages such as Suez Canal, distributors face a rapidly changing reality their business strategies, processes, people and systems are ill-prepared for.

In this Market Snapshot, we look at 5 reasons why:

1. eCommerce and the “Amazon Effect” are existential threats
2. The lines between B2B and B2C experiences are blurring
3. Geopolitical uncertainty will be a constant companion
4. A younger workforce means increased competition for top talent
5. New risk vectors pose fresh operational challenges

Each transformation imperative is discussed in detail, including its impact on distributors and recommendations for what they must do in response.

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As consumers continue to reshape their expectations,

enterprises must contend with a uniquely challenging landscape.

The consumer technology landscape is forever changing.

From Pinterest to TikTok, WeChat to Instagram, new experiences can rapidly gain consumer adoption and relevance.

Consumer, Technology, Incisiv

From augmented reality to voice, smartwatches to chatbots, consumers are constantly embracing new interaction paradigms.

Commoditized convenience is eroding loyalty and margin.

Consumers expect convenience. If you can't deliver it, they'll go elsewhere - e.g. next day shipping becoming the new standard.

Walmart will reportedly lose USD 1 billion on eCommerce revenue of USD 21 billion this year as it faces challenges in its bid to complete against Amazon – from trouble integrating its DNVB acquisitions to impact on margin from its next-day delivery operations.

Consumers value experiences that are curated to fit their lives better.

They want to engage, be served, and transact at their time, their pace, their place. They have little patience, infinite choice and the freedom to swipe left at the slightest hint of friction.

Consumer, Experience, Incisiv

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