MODEX 2020 Day One: Millennials and Their Impact on Distribution
Day one of this year’s MODEX event kicked-off with its anticipated array of technology solutions in action and hundreds of global companies sharing the latest and greatest impacting the supply chain. From warehousing and robotics to transportation and packaging, just about every moving part of the supply chain represented a part of the show.
Keynote speakers such as Michael Roe, Senior Account Executive at DMW&H, took on challenges specific to the distribution and ecommerce sector: millennials.
The generational differences brought to the ecommerce market have shaken the way distributors approach customer adaptation. Furthermore, distributors are now challenged to balance multiple consumer demands while remaining relevant. Roe explains:
“Millennials changed retail because of the way they shop. Millennials value culture, experience, and they value the value of the experience. Although it may seem new, it may not be so new.”
“Distribution practices have changed because we have to adapt to the customer base. If you understand what your customer wants, you have to change your distribution and understand how it’s going to work.”
He goes onto explain that during the early days of ecommerce, companies like Amazon (known to-date as the fastest company to reach $100 billion in sales) changed that model and took the stores out of the equation. This effort was a strategy used by ecommerce companies to reinvent the consumer’s shopping and comparison experience by adding ease and convenience. Amazon created a presence everywhere through its distribution centers – they were simply found everywhere. To this day, Amazon continues to expand its footprint with the help of automation.
For the modern consumer, the days of mall visits are a thing of the past for some, while for others in the same consumer pool prefer the option of both ecommerce and the traditional store model. Baby boomers typically still prefer the in-store experience with 84 percent confirming this preference. They want their product when they leave and aren’t keen on the idea of waiting for something already paid for.
Meanwhile, Gen X prefers the option of comparison-shopping while reaping the benefits of maximized value. Millennials demand a hybrid model offering a complex blend of what Boomers and Gen X’ers seek. And they want it for a competitive price. Navigating this shift has left some scratching their head as they identify the most adaptable approach.
At the end of the day, it boils down to understanding the customer and identifying the best approach to navigating the balance of consumer demands. The millenials concept isn’t all that new at all. in fact, generational changes have always been present, it’s all a matter of anticipating these changes and preparing the solution accordingly. Roe concluded that “Every generation has changed their shopping preferences. With each generation comes faster response times to customer preferences.”