Channel-less, the latest evolution of retail

When I was very small, my big sister and I would walk home together. She was in charge on the way home but when we got home there was always a fight over who would get the remote control first. The one who had the remote control controlled the one screen in the house and which of the four channels we watched. So we battled each other through the front door and the one who found it first held all the power.

?Fast forward to 2022. Whilst battles still exist (who is taking up the Wi-Fi bandwidth, whose device is the loudest) the situation is wildly different. There are an average of 11 screens in the average household. Today's consumer expects what they want, when they want it and nothing else is good enough.

We’ve also seen this shift in the way we shop. The 2000's saw the advent of multiple channels and store formats. In the 2010's, we adopted the term omni-channel where the same retailer operated in multiple formats. The goal was to integrate the brand experience across these channels. In the 2020's we’re starting to see a new phase of retail… channel-less.

If you haven’t encountered this phrase before, a channel-less approach focuses on the brand experience instead of the channel on which it’s taking place. Whilst channel-less is intuitive from a consumer point of view, I have struggled to understand what it means from a retail point of view. I first heard the term in preparation for the Nestle investor seminar in Nov 2021, and I recall an initial unease with the phrase.?No sooner does one get used to describing the world one way when a new buzzword is created. However, nothing stands still, and a shift towards creating a seamless brand experience for consumers can only be positive.

Channel-less does not deny the existence of channels, rather it highlights perils of limiting our thinking through this lens. Technology means that the value chain is split into ever thinner slices. These slices are then stitched together by technology enabled solutions. This provides a myriad of options for consumers and businesses alike.

Take a look at the shopping experience on Walmart. You can shop in store, online or through an intermediary like Instacart or Shipt. You can put the shopping in the basket yourself or you can use click and collect. You can have it delivered to your home or through Walmart. You can even have it unpacked in your fridge. Walmart is one retailer, catering for multiple needs with different profiles of convenience, speed and cost. Each is enabled by different partners and a user journey stitched together with technology. So what are the consequences of a channel-less reality and how can we navigate it?

?Scan the market, constantly.

First, we should acknowledge that there are more ways to reach our consumers today than yesterday - and tomorrow there will be even more. Keeping up and understanding the landscape is a constant challenge and changes more quickly then traditional three or even one year cycles. Regularly reviewing models and potential partners is helpful, some would say, necessary.

Leverage local expertise

With so many opportunities and so much variation it is likely that different markets will develop expertise in different areas. Within eCommerce you see regional hotspots. Whether it is LMDI in Asia, social commerce in China or eB2B in South America, these can be a source of inspiration for case studies, tools, technology or partners.

Just because you can doesn't mean you should

We must understand which areas will grow (or not) and who the partners are that are here for the long run. From here it is about understanding our right to play and win in these areas. This will likely vary significantly by market, by category and by brand.

Drive, accelerate, test, stop

Finally, we must be bold. Place some educated bets and allocate resources accordingly. Master traditional business models, invest in fast-growing and sustainable partners and test in others. Then being comfortable about cutting some activies or not playing in others… yet.

Channel-less represents a mindset shift from trying to put things into boxes to thinking in more fluid terms. Lines are not just blurring, in some cases they are vanishing altogether. This opens up many many possibilities. To keep up with a rapidly changing environment, be externally focused, think locally, prioritise and test… in summary follow where the growth is!