The Changing Face of Retail - Borderless Retailing

In our previous post in this series, we discussed how distribution and supply chain advancements are transforming how retailers get their products from suppliers to their customers.

But many flagship brands serve their global customers with a system that goes far beyond having their own localised service networks. Almost the entire sales process is outsourced and managed for them, through DTC (Direct To Consumer) service providers. These companies take care of the entire sales cycle, from providing local language versions of their online stores in different countries, to enabling localised payment options and banking systems that give customers a seamless customer experience in any language or part of the world. These third-party DTC providers will run and schedule seasonal promotions based on that country’s events and celebrations, and even help with local search engine optimisation and direct marketing.

The seamless customer experience doesn’t end there – DTC providers will take care of order picking and packing from regional logistics hubs, offer fraud protection services for shipped consignments, and even take care of customer services and returns, including return in-store options. They will ensure local sales tax obligations are met, and that items are picked, packed and despatched in a way that feels local to shoppers, giving customers the feeling that they are engaging with a local online store from their favourite global brand, and that their orders and customer experience are all managed by an in-house service.

It sounds futuristic, but this business model is fully advanced and operational and is being used by many leading brands around the world. It’s not just high revenue, big-ticket products that are being sold this way. Many smaller, boutique brands are also finding value in using cross-border fulfilment, logistics and management services, to ensure that they deliver a paramount customer experience. In fact, the cross-border e-commerce market is predicted to grow to 245 billion euros this year, ⁽¹⁾ and is set to grow to a market value of more than one trillion dollars by 2030. ⁽²⁾

Selling in the metaverse

Many luxury brands are also taking early steps into the metaverse, to explore a new realm of retail opportunities. While the full experience of what the metaverse has the potential to become is still being defined, designed and developed, many big-name brands are experimenting with selling NFTs (limited edition digital artwork) and companies are investing in new and future retailing opportunities, such as browsing in virtual stores, trying on and buying (real-world) clothes (or even clothing and apparel for their avatars), and booking virtual world billboard advertising. ⁽³⁾

While it may feel like an imagined vision of a distant future, it isn’t too great a leap to imagine computer games, like FIFA, for example, selling customisable football kits for their online players to wear, or being able to purchase your favourite player’s shirt whilst gaming. From there, the full metaverse experience is only a (virtual) footstep away.

There has already been a metaverse fashion week held, which garnered as much media interest as the catwalks of Paris and New York. You can already buy from Gucci while playing Roblox. ⁽⁴⁾ Metaverse real estate sells for millions of dollars. ⁽⁵⁾ The reality is that the metaverse retail experience is already with us.

Driving the demand for global logistics

What these borderless, worldless retail experiences give retailers is opportunity. At a time when many businesses are concerned by the economy, the chance to protect and even grow margins means exploring new ways to retail, from new overseas markets to virtual worlds and the new breed of customers that they serve. Borderless retailing, backed by global logistics and inventory management services are empowering a consistent and seamless experience, wherever or however we shop.

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The Changing Face of Retail - Borderless Retailing

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