"The customer has gained power"

Thomas Lang, Managing Director and owner of Carpathia Consulting GmbH.MK Online retailing is booming in Switzerland. What are the reasons for this? THOMAS LANG The main reasons for this are the ever-expanding range of products and the services associated with the purchasing and delivery process. In the meantime, e-commerce has reached the masses and we are no longer only dealing with buyers who make purchases periodically, but regularly. In addition, online stores have evolved and improved in terms of usability and product presentation, so a large part of the growth is due to the fact that women also feel more attracted to them. In the past, stores were often far too technical.MK Does stationary retail still have a future at all?LANG Yes, but he has to find himself in a new role. He is no longer the monopolist in terms of product information, product range selection and pricing, but is just one piece in the puzzle of the purchase preparation and transaction process as well as the settlement. The customer has gained power and for the first time can truly feel like a king. Today, he has access to more and more detailed information than the salesperson at the POS. This poses immense challenges for retailers. It can be assumed that many more sales will migrate from stationary to online business. Currently, we are at 6% of the retail volume. 20 to even 30% are within the realm of possibility, with in some cases dramatic effects on the stationary business.MK For which industries is an online store particularly suitable?LANG I would formulate the question the other way around: Which industries does it not lend itself to? Actually, there is no industry that cannot benefit from online. However, there are various forms and online will not immediately lead to an initial transaction in every industry. However, online is often one of the most important channels for pre-information before contact with the retailer even takes place.MK In the online sector in particular, Swiss providers have to contend with strong competition from abroad, such as Amazon or Zalando. How can you hold your own against these providers?LANG By focusing on its true values. Amazon and Zalando operate with brutal data and logistics expertise coupled with first-class marketing. However, they remain anonymous and at times soulless. This can be an opportunity for Swiss providers by focusing on their origins and tradition and on "why they do something." Their local ties can also be a competitive advantage. Unfortunately, this is where Swiss providers reveal major shortcomings. You don't feel online what they live stationary. So they have no chance in competition with foreign providers.MK What should a successful online store look like today?LANG As a customer, I need to see at first glance: What am I getting here, who is the provider, why should I buy there, and what are my advantages? This doesn't necessarily have to be the lowest price. Exceptional consulting concepts, unparalleled services or fast availability can also be convincing. But this must come across clearly. The customer should not have to search for these USPs first. In addition, trust in the provider plays a major role, especially in the case of small and lesser-known stores. Not to forget, of course, appealing presentation, good design and perfect usability.MK What are the most common mistakes when designing an online store?LANG The biggest mistake is thinking in functions. You let yourself be seduced by technicians and build in umpteen functions that a) nobody needs and b) distract from the essentials. Or the customer is forced into completely unnatural processes and workflows simply because the software provides for them. The customer is often simply forgotten. It would be more optimal to focus on the customer, their needs, wishes, fears, etc.MK On May 7, Swiss E-Commerce Connect will take place for the first time. What is the idea behind it? And what are the highlights?LANG The idea is an event by the trade for the trade. Often conferences consist of true PowerPoint infernos and are hidden sales events. With Connect, we want to connect the trade and promote the exchange of experiences. In addition to two keynotes, we will have panels on current topics and challenges. There, we can get to the heart of the participants, answer questions from the audience and also critically follow up on things, which is often not possible with classic presentations. Connect wants to connect. The highlights are the panel participants themselves, almost all of whom are members of the management teams of leading online retailers.MK What trends can be expected in the future in the area of e-commerce?LANG The speed of innovation is very high in various areas. In the logistics sector, for example, we see various players - often from outside the industry - coming up with innovations. For example, the automotive industry is also starting to get involved with Volvo, which wants to turn every vehicle into a parcel station. Or experiments are being conducted with dynamic pricing, where every customer (theoretically) has a different price, depending on the calculated probability of their purchasing power and demand. Mobile will come much more strongly; not only as an actual transaction channel, but closely linked with stationary retail to bring online competence to the POS.