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Philip Kotler - Marketing 5.0 (1)

Distribution Channel
The next tech also has various use cases for improving the
distribution channel. The most popular, especially after the COVID-
19 pandemic, is for contactless frontline interactions at retailers.
Aside from reducing costs, self-service interfaces and frontline robots


are more favorable for simple interactions such as banking
transactions, food order taking, and airport check-in. The pandemic
outbreak could also finally push drone delivery to take off. In China,
JD.com
became the first to deliver goods by drone to remote areas
during the lockdown.
Advanced technology can also ensure a frictionless customer
experience. Retailers are also among the first to experiment with
sensors. Amazon, which continues to expand its brick-and-mortar
presence, tried out biometrics payment systems in several Whole
Foods locations. In China, customers can check out at retailers by
posing in front of cashiers equipped with a facial recognition device
that is linked to Alipay or WeChat Pay.
The use of IoT is also becoming more popular. In smart stores
outfitted with sensors, visitor movement can be analyzed, and
therefore the actual customer journey can be easily mapped. Thus,
retailers can make adjustments to store layouts for improved
experience. With IoT, retailers can also pinpoint exactly where each
customer is at any given time, allowing for precise location-based
marketing in every aisle and shelf.
With a mix of the next tech, channel players can empower customers
for a pre-purchase virtual experience. Augmented reality (AR) and
voice search, for example, have been used for product feature
highlight and in-store navigation in Sam's Club. Virtual reality (VR)
makes it possible for customers to browse retail stores without
having to go there. Prada, for instance, was the first luxury brand to
use VR to replace retail experience during the pandemic.

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