In a survey, we found that more end-users are embracing online shopping and buying for business out of necessity in light of COVID-19.
Despite the many columns and webcasts predicting distribution’s post-pandemic “new normal,” it’s going to be a long time before our industry settles back into a rhythm. For now, expect a “new abnormal,” where powerful forces will continue to transform the industry and redefine how you must compete to win.
To many distributors, e-commerce and e-business sound interchangeable. Yet, there are important differences in the definitions.
The distributor is no stranger to coming upon crossroads throughout their business’s life span. For the most part, these forks in the road are clearly marked by the elements that created them – developments in technology, new entrants to the market, or advancements in the products they market, to name just a few.
Amazon continues to build share into traditional distribution channels. Their obsession for the customer experience raises the bar high for suppliers – distributors and manufacturers – whether you sell through them or not.
Shopping happens before the transaction; it includes finding, researching and selecting a product, but not buying or purchasing the product. Make no mistake: It is important to be easy to order from. But a customer’s shopping experience is a distributor’s real opportunity to differentiate.
While most distributors learned long ago to avoid managing for top-line sales revenue as a measure of results, many of today’s distribution businesses still believe that managing by gross margin is effective. In particular, sales compensation is typically rewarded based on gross margin for a particular deal.
To be successful, you need to make the case that your plan serves the company’s – and management’s – best interests. Emphasize results, not features, and be ready to make your business case with numbers and support from your counterparts in sales, customer success, and other stakeholders.
Millennials now outnumber Boomers and GenX in the work force (see Figure 1.) In 4 years they will significantly outnumber Boomers and along with GenZ will significantly outnumber GenX. That means that the majority of the workforce will have grown up in the digital era.
Distribution Strategy Group conducted an electronic survey with Modern Distribution Management in September 2016 of 425 participants to better understand trends in distribution marketing.