{"id":25081,"date":"2017-11-15T19:22:16","date_gmt":"2017-11-16T00:22:16","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/consumers-are-talking-can-mass-retailers-hear-them-the-customer-intimacy-challenge-for-walmart\/"},"modified":"2017-11-15T19:22:16","modified_gmt":"2017-11-16T00:22:16","slug":"walmart-x-google-the-customer-intimacy-challenge-for-walmart","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/walmart-x-google-the-customer-intimacy-challenge-for-walmart\/","title":{"rendered":"Walmart x Google: The Customer Intimacy Challenge for Walmart"},"content":{"rendered":"

In August 2017, Walmart announced the launch of voice activated orders through Google Assistant for hundreds of thousands of Walmart items and the integration of Walmart\u2019s \u201cEasy Reorder\u201d into Google Express, Google\u2019s shopping service. Marc Lore, President and CEO, Walmart US eCommerce \u00a0explained the decision to team up with Google on the company blog: \u201c[Google has] made significant investments in natural language processing and artificial intelligence to deliver a powerful voice shopping experience. We know this means being compared side-by-side with other retailers, and we think that\u2019s the way it should be\u201d [1].<\/p>\n

The post presents Walmart\u2019s current challenge and solution. The challenge: how to compete with \u201cother retailers\u201d like Amazon and adapt to the rapid proliferation of what McKinsey calls \u201cmass customization\u201d [2]. The solution: voice-activated shopping via Google Assistant, which theoretically opens a treasure trove of end-consumer data to power a more customized shopping experience.<\/p>\n

Google As a Means to Drive \u201cMass Customization:\u201d Why it Matters<\/strong><\/p>\n

E-commerce companies have an inherent advantage when it comes to mass customization given real-time demand signals from digital assets like websites and mobile. Brick-and-mortar by its nature hinders collection of and certainly easy transmission of real time end-consumer data to the rest of the supply chain. Further, brick-and-mortar mass retailers like Walmart have traditionally been tuned to shelf-driven demand with product-oriented supply chains [3]. Mass customization involves delivering personalized shopping experiences to meet individual consumer demand at scale, marrying the distribution power of big box retailers like Walmart and the intimate shopping experience of a mom-and-pop shop. Amazon mastered this game and has since taught the consumer to expect highly individualized shopping experiences for even commoditized products like soap and paper towels. Effectively delivering on this model requires transparency and seamless flows of consumer data throughout the supply chain.<\/p>\n

\"\"<\/a>\"\"<\/a><\/p>\n

Mass Retail in the Age of Customer Intimacy: Supply Chain Implications for Walmart<\/strong><\/p>\n

With Google, reduced friction between Walmart and its end consumer and the increase in quality data that comes with it should facilitate a more agile, customer-centric supply chain. Kevin O\u2019Marah of Forbes summarizes the partnership’s potential: \u201cwith Google as the starting point for consumer demand, and Walmart as the fulfillment engine, Google\/Walmart deal means that not just Amazon, but\u2026 everyone will start to transmit unfiltered end-consumer demand to the brand manufacturer… [offering] agile supply chains a chance to relate more intimately to their end-customer\u201d [4].<\/p>\n

Walmart can now \u201clisten\u201d to its customer on a far more granular level. In theory, access to this data will enable Walmart to adapt its supply chain in the following ways, which McKinsey calls Supply Chain 4.0 [5]. <\/em><\/p>\n