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Digitalization of Global Distribution
Digitalization of global distribution
In our daily life, where smartphones have become our daily lives, the overall industrial structure is undergoing a transition to digital, centered on mobile.
With the advent of the MZ generation, the pure digital native generation familiar with mobile, we are leading the innovation in consumption methods.
ex) Market Kurly, Musinsa
These digital natives have different consumption characteristics from their previous customers, so they are demanding a change in the distribution and marketing methods of existing brands. We provide customer value through a new differentiated process through digital platforms and apps, and combine digital technologies such as artificial intelligence and big data to provide a much higher level of experience than traditional channels and You will have to provide value.
“The lifespan of a company will be 60 years in 1960 and only 12 years in 2020,
52% of Fortune 500 companies will disappear due to digital revolution
- Constellation Research Analyst 'Ray Wang' -
If we do not go through digital transformation, we will no longer be able to break out of traditional channel sales, and we will not be able to guarantee the permanence of the brand.
Our company, Romana Co., Ltd., proposes distribution armed with new digital technologies, plans and manufactures platforms and apps customized to the brand, and will promote the digitization of innovative distribution that satisfies brands and consumers.
Digital of Distribution
D2C
Beyond D2C to Omni Channels...
D2C (Direct to Customer & Consumer) is a way for brands to sell directly to customers through their own sales channels. Now, it has naturally become the trend of rational consumption pursued by the MZ generation, and this D2C-type online channel is emerging as a core channel.
“Nike has been continuously conducting customer-centered digital innovation with D2C as the priority of its corporate strategy in 2017.
Our Q4 2020 results showed a 75% increase in online sales."
“AHC, 3CE, and Dr. Jart also started out in the form of D2C.”
The D2C channel, which can directly introduce products to consumers and deliver the brand’s core values and stories through connection and relationship, provides customers with new experiences and It has to provide value.
In addition, it is necessary to directly expand O2O (offline to online), which encompasses consumption experience in offline channels, which is the consumption pattern of the previous generation, to inform a variety of consumers of the brand's products.
“If we succeed in omni-channel, we will have enough competitiveness to not lose to global distribution companies such as Amazon.”
- Lotte Chairman Shin Dong-bin -
"The 'omni-channel' strategy that combines information technology and mobile technology with online and offline distribution channels is the direction of future distribution innovation"
- Shinsegae 'Jeong Jae-eun' Honorary Chairman -
By shortening the product life cycle through an integrated customer-oriented Omni strategy that provides a consistent consumption experience through a platform rather than a simple O2O expansion and provides customer-oriented differentiated digital technology You must combine various line-ups.
By supplying BEST products that are running through existing multi-channels and operating D2C channels centered on new and non-Best products appropriately, an omni strategy that integrates channels through the brand platform will need to be formed in the future.
Digital Transformation, the transition to a digital society
The changes that blockchain will bring are compared to the Internet a lot, and if the Internet was Digitalization 1.0, then Blockchain could be called 2.0. Since the invention of computers and the Internet, human society has been rapidly digitizing. Blockchain accelerates digital transformation by giving “trustworthiness” to digital data, and more parts of human society that have not been fully digitalized based on the existing Internet are being digitized.
IT technology, which must guarantee trust in money, insurance, securities, personal identity, laws and institutions, voting, and autonomous vehicles, will penetrate even more sensitive areas of our lives.
Therefore, blockchain is a key technology that will create a huge transformation called the '4th industrial revolution' in conjunction with other technologies such as the Internet of Things and artificial intelligence. In particular, when the Internet of Things (IoT) and blockchain are combined, the impact is enormous.
As more data is connected to the Internet of Things, more types of data can be digitized on the blockchain. And the data will be managed by software (artificial intelligence).
Image Source: https://blog.naver.com/zzaaq12329/222785966621
Blockchain technology that trusts digital data
Blockchain
Blockchain has a database where everyone is updated in real time . When some data is updated on the blockchain, the data is stored in all databases owned by each participant. Therefore , even if the data once uploaded to the blockchain is forged, it will be rejected if it is different from the results of many networks .
Strictly speaking, it would be possible if more than 51% of the database was hacked and changed, but if the number of network participants is large enough, the probability is close to zero and counterfeiting is impossible . Through this technology, the blockchain guarantees the reliability of data .
prove ownership of digital assets
Virtual non-fungible token (NFT)
What is NFT? Addresses pointing to digital artworks such as games, payments, pictures, and videos are included in the token, and are used to indicate their unique originality and ownership . Existing files could be easily copied without permission because they consisted of only data. In contrast, NFTs are not controlled by anyone using blockchain technology, and because they have uniqueness that cannot be copied , their scarcity can be fully recognized and relatively much safer . There is a difference. Due to this, various digital assets for various works of art are being produced and traded with NFTs.
For trading NFT assets
The influence of cryptocurrency created by blockchain technology
NFT asset trading is generally conducted in the form of an auction using Ethereum, the cryptocurrency, on the NFT platform. In addition to Ethereum, several cryptocurrencies are used. In Opensea, the world's largest NFT exchange, Klaytn, Polygon, and Solana can be traded, and small exchanges that can use these cryptocurrencies are emerging one by one.
As such, NFTs trade in cryptocurrency, so they are affected by the cryptocurrency price. In other words, NFT has both advantages and disadvantages as an asset. For example, if the price of cryptocurrency and NFT rise at the same time, you will get a profit close to compounding, but if the price of cryptocurrency and NFT fall at the same time, you will suffer a greater loss than general coin trading. you will see If only one of the two rises and one falls, the gain and loss must be calculated according to the fluctuation. Therefore, when investing in NFTs, it is necessary to simultaneously consider the ups and downs of cryptocurrencies used in NFT platforms and NFTs.
Factors that increase the future value of NFTs
For digital assets tagged as NFT, the owner and transaction history of the work are recorded with blockchain technology, and due to the nature of the technology, anyone cannot tamper with it. Even if the same digital file is duplicated with NFT, it is distinguished from the original generated by NFT first because it is tagged with an NFT that is different from the existing NFT in the end.
If there is a future where NFTs are valued in the art world, of course, the value of NFTs that have been created for a long time will increase significantly. Since each NFT is a token that cannot be replaced with each other, it is only used for works of art. In addition to works of art, NFTs can be applied to various game items (Play to Earn) or used for distribution of limited editions.
Blockchain content source: https://blog.naver.com/zzaaq12329/222785966621
Source of NFT content: https://namu.wiki/w/NFT
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