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From Push to Pull: Unveiling the Evolution of Route to Market (RTM) model
by Anish Tamang
June 03 2024 | 04 min read
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In a rapidly digitising world, the traditional Route to Market (RTM) is undergoing a profound shift towards a more consumer-centric approach. As discussed in our recent webinar featuring industry experts Godson Nkeokilonye, Kasim Olusegun, and Akshat Kush, the emergence of digitisation is reshaping the way brands engage with consumers in Nigeria and beyond, and the evolution of Route to Consumer (RTC) models through digitisation. Here, we encapsulate the key insights shared by our panel experts, shedding light on the transformation of traditional Route to Market (RTM) to RTC and its impact on Nigerian consumers.
The Impact of Digitisation on Consumer Behavior:
Kasim Olusegun highlighted the profound impact of digitisation on Nigerian consumers. With over 122 million internet users, the landscape has shifted towards digital engagement with brands. Concepts like buy now pay later and pay on delivery have reshaped consumer interactions, providing convenience and access to a plethora of product choices. Moreover, increased internet penetration has led to enhanced consumer education, influencing their purchasing decisions.
Leveraging Technology for Efficiency:
Akshat emphasised the role of technology in streamlining supply chains and empowering sales teams. By digitising processes and providing real-time insights, businesses can optimise decision-making and enhance sales effectiveness. Bizom offers comprehensive solutions for store enumeration and authenticity verification, ensuring a clean and reliable store directory. With the integration of generative AI, businesses can anticipate consumer demand, optimise shelf visibility, thus driving brand loyalty.
Understanding RTC vs. RTM:
Akshat Kush delved into the transition from RTM to RTC, emphasising the shift from a supply-based model to a demand-based one. While RTM focused on pushing products through trade promotions and incentives, RTC entails a more consumer-centric approach. With the aid of technology, manufacturers can now understand consumer preferences in real-time, enabling a pull-based model. This evolution is driving innovations like quick commerce and just-in-time inventory management, redefining the retail landscape in Nigeria.
Local Patterns and Emerging Technologies:
Kasim also elaborated on local patterns and emerging technologies shaping RTC in Nigeria. Quick commerce, direct-to-customer business models, and digital-led hub-and-spoke systems are revolutionising how brands reach consumers, particularly in rural areas. Traditional e-commerce is evolving, with global players like Amazon making inroads into the Nigerian market. Additionally, fintech companies are disrupting traditional distribution models, emphasising the need for businesses to embrace digitisation for future success.
Steps to Embrace Digitisation:
For businesses embarking on the digitisation journey, Akshat outlined key steps for success. Establishing a stable channel for information capture is paramount, ensuring seamless integration across all levels of the supply chain. Furthermore, businesses must empower sales teams with data-driven insights and real-time rewards, fostering engagement and motivation. Embracing cultural nuances and leveraging technology for decision-making will be instrumental in navigating the evolving RTC landscape.
Don’t miss out on the insightful discussions from our recent webinar featuring industry experts. Click here to watch the full webinar on YouTube now and unlock the secrets to transforming your business in the digital age. Seize the opportunity to stay ahead of the curve and drive success in today’s dynamic market landscape. As we navigate the digital transformation journey, the imperative for businesses is clear: embrace digitisation or risk being left behind. By leveraging technologies like Bizom, companies can gain actionable insights, optimise their routes to consumers, and drive sustainable growth in an increasingly competitive landscape.
Ready to revolutionise your route to consumers? Take the first step towards digital transformation today with Bizom.
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