resource: Retail in Peru
The shopping experience it offers consumers today is no longer purely physical or digital, as the two formats now go hand in hand.
The pandemic environment we are currently living in has transformed the market and, in addition, has led to the establishment of new trends in marketing; such as Phygital, a new business model featuring retail that brings together the physical and digital worlds .
In this sense, the shopping experience offered to consumers today is no longer purely physical or digital, as the two formats now go hand in hand and complement each other, driving the company’s new hybrid trend.
For Dolores Guevara, General Manager of Farmacia Universal, Phygital trends include: “Creating an environment in the brick and mortar section or channel that allows us to expand the customer experience with new technology solutions that go beyond the old format they’re used to it incorporates brick and mortar The advantages of the channel, like personalized attention, and the huge advantages of the digital world, like speed and immediacy.”
Likewise, Arnold Wu, executive director of Pardos Chicken, defines Phygital as a company’s ability to provide consumers with a shopping experience in both physical and digital channels, and through this complement, provide instant, easy and great customer interaction.
For his part, Salesforce’s global innovation expert Brian Solis prefers to characterize the retail market as the “DiPhy experience,” a term that prioritizes digital channels.
“It’s about reimagining what a physical store should look like, and how physical spaces are used and designed, based on a digital experience,” explains Solis.
Many companies have adapted to new trends
Peruvian companies choose to implement the Phygital experience with the aim of promoting their business, regardless of the category or region in which they operate.
The aim is to promote digital channels, strengthen company strategies, and employ the latest and most innovative technologies to serve and satisfy consumer buying behavior.
On the other hand, Arnold Wu said in an article prepared ahead of the 2021 International Retail Conference that digital transformation will continue to intensify, such as artificial intelligence and digital customization.
Likewise, Solis emphasized, “The value of e-commerce in Peru grew from 1.7% to 5% in 2019, with an e-commerce value of $4 billion.”
However, Solis believes both numbers will continue to grow, in fact, he estimates that online commerce in the country will reach $14 billion by 2022.
The challenge of mixing trends
Guevara pointed out that one of the main challenges of the new business model is to develop new solutions that are expected by more customers. That is to say, consumers must be provided with timely and effective advice they want, but cannot be ignored. The strategy must also The company is profitable.
This benefits retailers in broadening their vision of what the digital channel should represent, as they often overlook the channel’s potential to develop and subsequently monetize the creation of new experiences in the business. produce significant growth.
