Building B2B Bridge Online

In fragmented retail (independent small grocers, restaurants, and bars), technology and ecommerce have fundamentally reshaped B2C business models and customer engagement - for example, through online ordering and delivery.

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In fragmented retail (independent small grocers, restaurants, and bars), technology and ecommerce have fundamentally reshaped B2C business models and customer engagement - for example, through online ordering and delivery. However, digitally enabled business models have yet to have a similar impact on the B2B part of the value chain, which stretches from the consumer-goods manufacturer to the distributor and wholesaler and finally to the retailer. This segment has remained largely unchanged for decades.

Recent developments suggest the landscape may be ready to shift. With a market of more than $2.8 trillion worldwide, fragmented retail is poised to be transformed by 'eB2B' players: portals and applications that replace the in-person sales model for small retailers and restaurants.

For an eB2B offering to make significant inroads, companies must provide compelling solutions with financially viable models that address the specific needs of fragmented-trade retailers. Winners will approach this challenge by thoughtfully solving pain points and ensuring they can extract margin from the efficiencies generated along the full value chain.


Key contributors to profitability are, for example, cheaper last-mile delivery economics, an improved supplier-retailer relationship, enhanced store performance through technology and better data collection for suppliers.... Companies need to design an eB2B solution capable of disruption.

From "Digital Disruption: The Rise of eB2B in Fragmented Retail"

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)
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