Retailers can create the right foundation for their value proposition by building on their core business capabilities and aspirations for future value creation.
Some retailers may find that embedding themselves into communities and acting as hubs for connecting local people with local products is their biggest opportunity.
Others may see opportunities to engage with digital communities by creating immersive and interactive spaces in the metaverse.
Still, others are already transitioning their business models to accommodate adjacent opportunities in media, sports, healthcare or technology.
Many may just opt to give their customers what they want as quickly and seamlessly as possible.
While the business models of today generate revenue by selling brands to the consumer, those of tomorrow may rely on selling access to consumers back to brands, or they may create value in entirely different ways, through financial services, data, or events that take primacy over the act of shopping.
In all these cases, retailers that develop their value propositions around the right blend of invisibility, indispensability and intimacy can track the value that they create beyond the transaction and create the right contextual experience for their customers, time and again.
These three I’s (invisibility, indispensability and intimacy) are essential for businesses as they can shape successful retail value propositions of the future, enabling retailers to differentiate between their offerings and provide tangible benefits and value back to the consumer.
This enables them to reach the fourth I, of integration, by being welcomed into the customer’s circle of trust.
Those that fail to embrace this run the risk of another I: irrelevance.
To find out more, read EY’s report titled How Retailers’ Value Propositions Need To Evolve For Success.
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