Member of the Board MODIVO S.A

Recent year has brought the unprecedented rise in the e-retail revenues – it has almost doubled as compared with 2019. This result has been in most cases stimulated by the COVID-19 pandemic – either originating in convenience and safety attitudes of vast majority of consumers or because of the regulatory limitations in the access to physical stores.Online sales growth seems unstoppable now.

Well aware of these conditions, MODIVO has been cautiously observing them and adequately adjusting its business operations and strategy. Especially, as the interest in online shopping continues even after the decline in the reported number on new corona cases. Hence, our approach to implementation of innovative e-commerce technological advancements that we perceive as the means to create even more convenient and less time-consuming customer experience.

The dynamic expansion of e-commerce market clearly enters some new areas what can be observed e.g. in the growing popularity of mobile commerce (m-commerce). It has a chance to penetrate the mainstream approach as the preferred shopping channel. This is possible with the implementation of a whole range of technological solutions that make it easier for users to shop with their smartphones. More and more often the customers choose mobile applications rather than websites, focusing on quality and functionality. Increasing proliferation of m-commerce will force the owners of e-stores to create solutions that will provide customers with immediate and personalized shopping. At the same time, sellers will be able to use mobile features and app analytics to attract, retain and intuitively understand the purchasing behaviour of existing and new users.

The next step in the dissemination of such mobile approach to the shopping experience is the expected quickness of the buying process and its results. With the increased frequency of online purchases, we have also observed dynamic development of the q-commerce trend, i.e. quick sales. Until recently, this system has mainly been the domain of the e-grocery sector, where deliveries can reach the customer within half an hour. In case of non-food industries, such a model is not so simple to implement, which does not mean that it is impossible.

"Well-engineered, competently configured and user oriented mobile payments services are the future of any e-commerce platform."

The eobuwie.pl network of physical stores, that MODIVO is developing, is designed in such a way as to handle orders as part of the express service. We already offer same-day delivery in the largest Polish cities and also in Czech Prague. The development of the logistics base and focus on an efficient supply chain are therefore a key element in achieving these ambitious goals. In order to improve the delivery on the key markets in Southern Europe: Romania, Bulgaria and Greece, we have opened the new distribution and logistics centre in Bucharest. The aim is even faster fulfilling the expectations of our customers, what will be possible with the Next Business Day delivery service. Our strategy assumes that by 2025, 40 percent of deliveries are to be made the next day after ordering.

We can observe one more interesting trend when it comes to some innovative solutions incorporated into the delivery process. MODIVO, in partnership with Polish operator of postal deposit boxes Inpost, is already testing the introduction of reusable packaging when shipping orders. As we are calculating, implementation of such a system can possibly reduce tenfold the demand for packaging utilised in the product distribution process. In the near future, therefore, goods will reach customers not only faster, but above all reusable packaging will let us improve our contribution towards sustainable development policy and expand our environmentally friendly efforts.

The perspective of various internet stores proves that limited choice of payment options reduces competitiveness against other brands and especially against large sales platforms. The development of mobile shopping is sharply followed by the introduction of similarly mobile payment methods enabling the completion of the purchase within just a few clicks. Well-engineered, competently configured and user oriented mobile payments services are the future of any e-commerce platform.

On the other hand, in some cases, implementation of deferred payments should also be considered. Such tools are developing really fast and CAGR of the global Buy Now, Pay Later market is estimated to reach more than 20 percent by 2028 and will be worth over $ 20 billion. The main factors driving such dynamics include: a wide number of benefits for customers and innovative technological solutions, as well as establishing new partnerships between companies such as PayPo, Twisto or Klarna with stores from various industries: fashion, electronics, media and DIY. The deferred payment service is most common when buyers are reaching for products belonging to the premium segment: either electronics or apparel.

Lifting of many pandemic limitations imposed on the commerce sector in general has proved that online shopping will not settle back to the previous scope and as a result a more comprehensive approach is required. Operating both online and offline business provides access to a broader market.

The characteristic of omnichannel as a sales method focuses on the use of all available channels, both online and offline. The key is to maintain the same prices and terms of purchase or complaints in all places. We have observed that customers won't buy an item until they see it multiple times. Moreover, many contemporary buyers are extensively utilising the possibility to compare prices online. Appearing on various platforms increases the chance of successfully reaching the customer, who often sees a product in an online store and then looks for it in other internet sources or proceeds to purchase it in a physical store.