CITI TTS Healthcare Consumer & Wellness Client Magazine

18 19 Healthcare, consumer & wellness How would you characterise today’s eCommerce market? Within the omnichannel trend, we saw eCommerce explode during the pandemic, and all the signs suggest that people will continue to buy online post-pandemic. But what’s distinctive about eCommerce today is not the amount of business that’s conducted online, but the degree of vertical integration that’s taking place: we are seeing more and more a trend to go direct to consumer or use marketplaces like Amazon, Mercado Libre as well as Instacart, Uber Eats, Rappi and Gopuff. Digital platforms (WeChat, WhatsApp, Telegram), content streaming (Instagram, YouTube, TikTok), online shopping (Mercado Libre, Alibaba, Amazon, Shopee) or web browsers (Google, Safari, and Edge) continue to expand into new areas bridging the entire online universe and keeping consumers on their captive platforms. eCommerce innovations such as alternative payment methods including digital wallets, one-click checkout or buy now pay later (BNPL) started as distinct products are now integral features of the consumer experience across a range of platforms. We saw the number of companies selling direct to consumer (D2C) during the pandemic – what’s happening in this space? Many brands are looking to sell direct to consumer (D2C) to create a more direct relationship with customers, but they need to avoid the risk of fragmenting or adding complexity to customers’ digital experience. After all, most people use their smartphones to shop and communicate, so there is limited digital real estate to balance convenience with depth of consumer experience; digital platforms, and D2C sales models are becoming more complementary, rather than competitive. Companies are looking for a deep understanding of end-to-end payments schemes with dedicated teams that have the knowledge besides the local, regional, and global reach. As digital platforms span a wider range of activities, they are working with sellers in new ways, and creating new synergies, such as by providing a gateway for D2C sales channels and data analytics. Consumers still have the convenience of a single point of access to multiple brands, but brands can still engage directly to deliver a more personalised experience and build brand loyalty. These digital platforms are also able to leverage their range of activities to provide ancillary services that these companies need to enable their D2C offering, such as inventory management, warehousing, fulfilment, and logistics, avoiding the need to build these from scratch. What role does Citi play in enabling the new generation of eCommerce? As industries collapse into digital ecosystems, and the digital giants What you need to KNOW In conversation with Maria Grazia Martinez, HealthCare, Consumer & Wellness TTS Sector Head, Latam What’s distinctive about eCommerce today is not the amount of business that’s conducted online, but the degree of vertical integration that’s taking place” 02 expand their reach across the end-to-end digital experience, it is clear that no company can operate in isolation. Developing proprietary marketplaces and partnering with the digital platforms can bring significant benefit, as companies can get their brands to market more quickly, access ancillary services and expand cross-border at a lower cost. The challenge is to decide which partners to work with. At Citi, we occupy a unique position as a secure facilitator of digital ecosystems within an omnichannel scope. We work with the world’s leading digital platforms and provide the ‘rails’ for global eCommerce also for proprietary marketplaces. Our solutions provide global visibility, accountability, and consistency as well as a single point of entry. We support the sellers that are seeking to expand their digital sales propositions, both top players and rising stars, spanning multiple industries, whether fast moving consumer goods (FMCG), apparel, personal care, food and beverage or automotive. And we bank the companies that connect the entire process and increase our strategic alliances from sales through to deliver, including the different payment methods, connection to processors and reconcilement. This gives us a distinctive advantage point across the eCommerce landscape, via proprietary or third-party marketplaces and D2C, and the ability to take a balanced view on the right strategy for each client. And through our global network, digital-first solutions, and breadth of partnerships, we can help clients shape the future of their supply chains. What advice would you give to companies embarking on, or expanding their D2C sales strategy? Work out exactly what you want to achieve. Are you looking to increase sales to existing customers, build a new customer base, potentially in new markets, improve data to help drive new products, or build brand awareness? Adding D2C sales channels has an impact across the business, so it is important to engage product teams, technology, logistics, etc. to ensure that customers enjoy an even better experience than they are used to. Many companies have well-established processes, such as purchase-to-pay and order-to-cash structured around existing business models. Adding a D2C channel is an opportunity to reinvent and reimagine the way the business operates. This is an exciting time, and a way to motivate and engage people across the company. One of the main client priorities is system driven automation, extreme global reusability which allows companies to quickly penetrate new markets and a 24/7 365 model as well as instant payments schemes which are beginning to dominate the landscape. What should we be looking out for in the coming months? The dynamics of eCommerce are changing quickly. We will see more and more focus on clients’ journey experience, flexibility, faster returns and delivery, predicted orders through artificial intelligence and human interaction across the different digital channels. So far, most eCommerce has been domestic, but cross-border eCommerce is growing rapidly, a trend that is likely to continue, particularly D2C, as the barriers to international continue to fall. We will see more digital payment methods leading the ecosystem and enabling growth. We are seeing lots of headlines about the metaverse, and there’s likely to be a lot of consumer interest in these new virtual worlds. As the concept is still so new, it’s difficult to predict what new consumer offerings will emerge over the next couple of years, who the players will be, and how the current competitive landscape will change. The eCommerce is evolving and growing, we see more clients active in the social commerce and the metaverse, looking for new ways to engage their clients and innovate. At Citi we are ready to be part of this growth journey with you. Developing proprietary marketplaces and partnering with the digital platforms can bring significant benefit”