3 Reasons Why Manufacturers Need to Accelerate Digital Development in 2020

Under the influence of the developing digital revolution, a modern universal buyer has been created. It makes sense that without the seller, it would not have happened. It's the right time to take a good position in the market!

Retail trade in the United States reached a turning point in 2016. According to our data, Russia is only three years behind. In other words, at present, about 60% of sales are made over the Internet. Under the influence of the developing digital revolution, a modern universal buyer has been created, with a smartphone and access to the Internet, where he has the right to make purchases and realizes this right successfully.

Here are 3 reasons that show manufacturers the right time to implement or accelerate their digital development in their businesses:

1. Online shops are invading the world.

More than half of online purchases take place in online stores such as:

  • Amazon;
  • Ebay;
  • AliExpress;
  • Ali Baba;
  • Taobao;
  • TinyDeal;
  • Miniinthebox / Lightinthebox;
  • Gearbest;
  • Banggood;
  • DealExtreme;
  • Pandao;
  • Joom;
  • Etc.

All are built on the same business model and are not only important in the sense of electronic security and attract customers, but they are not only buyers, but also sellers offering unique and, more importantly, relevant products.

If this is not convincing enough, think about it: 44% of the US population is already within 20 miles of the Amazon mall, because they are its sellers (even the end-to-end plot of season 22 of the South Park cartoon was devoted to this phenomenon).

To say that the annual sales of the company "Amazon" and the growing price of 100 billion dollars of growth make it too attractive for the manufacturers, simply uselessly.

2. Traditional business channels are becoming obsolete.

Changes in customer behavior associated with an increase in the digital development level cause an inflection point for ordinary commercial channels (search, alerts and customer support), requiring the manufacturer to change its offer regularly and, in some cases , to close the physical storage. This affects B2B and B2C manufacturers, who rely exclusively on traditional business channels, which can have a negative impact on their sales.

3. The competition is already there.

Many brands and manufacturers already use online technology. For example, a high-end brand like Prada has announced its intention to increase sales in digital format. Under Armor also invests heavily in fitness applications to be able to sell its products and services directly to consumers online. At the moment, in the minds of all manufacturers, the desire to fully flourish in the digital space is emerging. Your competitors may already be there, so keep going.

The use of digital technology is no longer an option for manufacturers; now, it is essential to increase the attractiveness of the clientele.

If you are a manufacturer, and especially a small business representative, you may be particularly interested in our unique solutions that can help you on this difficult path using modern technologies based on neural networks of artificial intelligence.

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