E-commerce and retail converge

KALLA, a subsidiary of Dentsu Inc. Aegis Network and one of the world's largest media agencies, has released its annual "TOP 10 TRENDS." In the rapidly changing world of media and technology, it introduces 10 notable trends for 2018.

E-commerce and retail, once entirely distinct experiences, are now converging. Major e-commerce players like Amazon and Alibaba are acquiring brick-and-mortar retailers, while offline giants like Walmart are acquiring online companies.

Amazon, which acquired retailers like Whole Foods, has become the second-largest employer in the U.S. in brick-and-mortar retail, behind only Walmart. Walmart has brought several online retailers under its umbrella, including Jet.com, acquired for $3 billion, to build its digital infrastructure.

Alibaba operates businesses integrating online transactions with physical store sales. During China's Singles' Day shopping festival, thousands of smart stores and physical fulfillment centers collaborate to support shoppers. Amazon, inspired by Singles' Day, introduced "Smile Code" this year. Similar to QR codes, this system allows consumers to shop using an app in-store and have items delivered to their homes.

Meanwhile, small and medium-sized retailers are also advancing online-offline integration. For example, eyewear retailer Cubitts reports that whenever it opens a new store, it attracts consumers encountering the brand for the first time, causing a surge in online traffic each time.

Today, opportunities to purchase and experience brands exist in every aspect of daily life. Therefore, brands must be available wherever consumers decide they want to buy. Commerce is also increasingly global, making cross-border thinking commonplace. For retailers, maintaining a physical marketing presence—such as through experiential stores—has become crucial.