The importance of digital innovation and investment in technology during periods of economic slowdown, such as those recently experienced due to the pandemic, is a key factor for companies today. Anyone who wants to succeed and keep up with the times must protect their digital investments to strengthen their position in the market and prepare for future growth. Technology strategy must be future-proofed to become more customer-focused and respond to their ever-changing expectations with adaptability, creativity, and resilience.
Economic uncertainty is leading buyers to be more selective with their spending
According to the American company bigcommercein this composable trade guide, during the pandemic, companies were able to create online stores with great results because consumers were forced to buy online. However, today, with inflation rising in countries like the US, UK and Europe, some buyers are cutting back and looking for cheaper deals. Competition in the marketplace is also increasing, making it crucial for brands to find ways to stand out. To achieve this, another analysis from consulting firm Forrester suggests that companies focus on “obsess over the customer» and find ways to better serve their needs, as this will become an important factor for consumers as the economy becomes more difficult.
Omnichannel expectations drive the need for flexible commerce technology
Taking an omnichannel approach is becoming increasingly important for brands looking to succeed in eCommerce. By reducing friction in the purchase process, such as m-commerce, digital wallets, DTC, and the option to buy online and pick up in store, brands can improve the customer experience and increase their sales. Additionally, data from Google Insights shows that searches related to online and offline shopping are on the rise.
To be successful in omnichannel, Bigcommerce explains that brands need to improve their warehousing and distribution capabilities. Some brands have chosen to run their own distribution, which has allowed them to offer a better customer experience, deliver products faster, and reduce costs.
However, many companies are struggling to deliver the omnichannel experience shoppers expect due to legacy technologies. Integrating technology systems, such as inventory management tools, point-of-sale, and commerce platforms, can be challenging. Therefore, it is important to adopt flexible and adaptable commerce solutions that can help companies continue to grow across different channels, regions and segments, especially in times of economic downturn.
How composable commerce can bring flexibility to businesses
Composable commerce has grown in popularity in recent years due to the need for enterprises to have a flexible and scalable architecture to meet changing market and customer demands. Instead of relying on a single, monolithic platform, composable commerce enables companies to choose and customize the different technology solutions and services that best fit their business needs.
In this way, companies can build a more modular and adaptable technology stack, allowing them to quickly switch between service providers or technologies as their needs change. Additionally, the composable architecture allows them to extend and customize their applications as their business grows and expands into new markets and sales channels.
In short, composable commerce is a new way of approaching the technology architecture of e-commerce that allows companies to be more agile and flexible to meet changing market and customer demands. Although it is not a new concept, it has gained popularity in recent years due to the need of companies to have a more scalable and adaptable architecture.
How composable commerce works
Composability is defined as the ability to divide an entity into several modules, which are combined to form a whole. Therefore, according to Gartner, a composable company is one that is organized from interchangeable blocks.
Here are the four fundamental principles of composable commerce:
- MODULAR — each system component can be deployed and interchanged independently.
- OPEN — all system applications can seamlessly integrate with each other without vendor lock-in.
- FLEXIBLE — By having an individualized stack, you can create unique shopping experiences tailored to your business.
- BUSINESS ORIENTED — This system enables merchants to quickly and cost-effectively respond to changing business requirements.
In addition to allowing for greater flexibility and customization, the composable commerce approach can also help companies better adapt to market changes and new technology trends. By choosing specialized providers and being open to new solutions, companies can keep up with the times and offer a more satisfying shopping experience for their customers.
However, there are also challenges associated with composable commerce. Having a more complex technology stack and being made up of multiple vendors can make it more difficult to manage and maintain. Additionally, there can be integration issues between the different solutions, which can lead to technical issues and implementation delays.
Overall, composable commerce is an innovative approach that is gaining popularity in the world of eCommerce. While there are challenges to consider, it can offer greater flexibility and customization, which can be a competitive advantage for companies looking to expand and adapt to an ever-evolving market.
«composable» It also means that, should companies want to substitute one component for another in the future, they are not locked into one system or one way of doing things. In essence, it is the way companies prepare for the future.