Unable to leave our homes, the COVID lockdowns saw a boom in online shopping. In this post-covid world, are businesses better off with a physical presence or are direct-to-consumer online platforms the better path to take?
The challenge
Digital e-commerce has continued to grow, becoming the dominant retail channel today. In this light, channel choice has become a key strategic imperative for manufacturers – and the study of the interrelationship between brands and channels is needed to inform this decision. Whilst large manufacturers, such as Nike and P&G, have added direct-to-consumer (D2C) channels, the data to support this decision for other categories is needed. The aim of this research is to investigate consumer shopping behaviour to better understand the shift of purchasing pattern differences between online and offline channels.
Solution
The project will use the consumer panel dataset, which contains all purchasing information and channel data of individuals. Analysing this data in relationship with environmental turbulence faced by organisations, the research will explore the following questions: What are the changes to basket size when households move from brick and mortar to online channels? Do the purchase patterns change across different channels? How do loyal customers behave to changes in logistical availability?
Outcome and impact
The results of this research will assist manufacturers in the decision-making of both brand value extensions and channel selection. More selectively, it will add insight into whether manufacturers should go D2C to avoid the retailer power impacting brands. Findings will outline the opportunity to enhance margin and profitability and utilise the data to drive customer experience and relationships.
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