‘Optimisation of stock management had a huge impact on conversion’
We often associate e-commerce with big foreign players like Zalando, Bol.com and Amazon. But there are strong initiatives in Belgium, too, claiming their share of the market. Among the standout players, Connect+.
We often associate e-commerce with big foreign players like Zalando, Bol.com and Amazon. But there are strong initiatives in Belgium, too, claiming their share of the market. Among the standout players, Connect+.
As the company’s Chief Digital Officer, Jan Huysmans is responsible for an e-commerce website for leading Belgian electrical brands. A conversation about the trends in e-commerce with an expert.
With a background at Bol.com and Vanden Borre, Jan Huysmans was at the forefront of e-commerce in Belgium. Today, he is the digital trailblazer of the omnichannel retail network Connect+. From the 30,000-square-metre warehouse in Rieme near Zelzate and head office in Bruges, Connect+ provides the IT backbone, logistics and marketing for over 350 local electrical stores of Expert, Exellent and Selexion in Belgium.
What is the strength of Connect+?
Jan Huysmans: ‘Connect+ buys products, stores them at the logistics centre and distributes them to the 350 stores or directly to the consumer. That way, the stores can offer the customer the same digital benefits as the pure players like Amazon. We combine the best of two worlds: excellent digital service and the advantages of local anchoring. In the physical stores, people can look at a product, get advice from expert sales assistants and ask them about repairs. This is a service you don’t get from online marketplaces. It puts our brands in a strong position. Yes, the extensive product range of marketplaces attracts customers, but it’s a double-edged sword. People get stressed out by choice overload and decision fatigue.’
With a background at Bol.com and Vanden Borre, Jan Huysmans was at the forefront of e-commerce in Belgium. Today, he is the digital trailblazer of the omnichannel retail network Connect+. From the 30,000-square-metre warehouse in Rieme near Zelzate and head office in Bruges, Connect+ provides the IT backbone, logistics and marketing for over 350 local electrical stores of Expert, Exellent and Selexion in Belgium.
What is the strength of Connect+?
Jan Huysmans: ‘Connect+ buys products, stores them at the logistics centre and distributes them to the 350 stores or directly to the consumer. That way, the stores can offer the customer the same digital benefits as the pure players like Amazon. We combine the best of two worlds: excellent digital service and the advantages of local anchoring. In the physical stores, people can look at a product, get advice from expert sales assistants and ask them about repairs. This is a service you don’t get from online marketplaces. It puts our brands in a strong position. Yes, the extensive product range of marketplaces attracts customers, but it’s a double-edged sword. People get stressed out by choice overload and decision fatigue.’
How does today’s consumer decide whether to buy online or offline?
Jan Huysmans: ‘Today’s buyer is a capricious consumer. People make decisions depending on the situation. If you need advice or want to have a look at the product, you go to a store. If you want to make a quick decision, you tend to go for the online option in that moment. It also depends on the product. Almost fifty percent of IT products are bought online, but this percentage is a lot lower for washing machines. When buying a TV, you want to have a look at them in the store, whereas you are more likely to buy a smartphone via the internet. Often, consumers will start the purchase process online, but most electrical appliances are still bought in physical stores. People do their research at home and then ask specific questions in the store. As a brand, you have to be strong on both fronts.’
What was the impact of COVID on e-commerce? Do online shoppers continue to favour virtual stores?
Jan Huysmans: ‘During the pandemic, e-commerce got a huge boost, but the growth rate has since returned to normal. It didn’t take long for consumers to find their way back to the physical stores. Following the acceleration through the pandemic, the growth in e-commerce has slowed, which has resulted in a wave of redundancies, among other things, at the retail giants. The COVID effect has run its course and we are now at the level that we would have been at if the pandemic hadn’t happened.’
What do you think is the most important development in e-commerce?
Jan Huysmans: ‘There’s no “free” money anymore. Just like in other sectors, it has become quite tricky to attract venture capital. For years, e-commerce players were able to persuade investors to part with their money, even when posting negative results, but those days seem to be over.’
What was the impact of COVID on e-commerce? Do online shoppers continue to favour virtual stores?
Jan Huysmans: ‘During the pandemic, e-commerce got a huge boost, but the growth rate has since returned to normal. It didn’t take long for consumers to find their way back to the physical stores. Following the acceleration through the pandemic, the growth in e-commerce has slowed, which has resulted in a wave of redundancies, among other things, at the retail giants. The COVID effect has run its course and we are now at the level that we would have been at if the pandemic hadn’t happened.’
What do you think is the most important development in e-commerce?
Jan Huysmans: ‘There’s no “free” money anymore. Just like in other sectors, it has become quite tricky to attract venture capital. For years, e-commerce players were able to persuade investors to part with their money, even when posting negative results, but those days seem to be over.’
What is one trend no company can afford to ignore when it comes to e-commerce?
Jan Huysmans: ‘AI and big data are becoming increasingly important, like in many sectors. Customers are getting more and more targeted information in a personalised digital environment. With their consent, you are able to tailor your campaigns to their needs even better. As an e-commerce player, you have to have lots of data so that you can reach your customer at the right time and in the right place with relevant content.’
What implementation had the biggest effect on your business internally?
Jan Huysmans: ‘Our online shop is strongly linked to the warehouse organisation. The optimisation of the stock information on the website had a huge impact on conversion. Consumers want to have their hands on their products as soon as possible. By giving them an accurate picture of stock levels in their local stores, for instance, online sales rose by double digits.’
What do you consider the biggest challenge for your business?
Jan Huysmans: ‘Our store has 30,000 products. We have to provide accurate information about all these items. The product assortment continues to grow. Creating content is an ongoing task. People need the right information to be able to make a decision online. This goes way beyond product information. With blogs and videos, we help them decide. Offline, we make a difference because our store managers are expert salespeople who assist customers with specific advice. Digitally, we help customers navigate with labels like “the expert’s choice”.’
What implementation had the biggest effect on your business internally?
Jan Huysmans: ‘Our online shop is strongly linked to the warehouse organisation. The optimisation of the stock information on the website had a huge impact on conversion. Consumers want to have their hands on their products as soon as possible. By giving them an accurate picture of stock levels in their local stores, for instance, online sales rose by double digits.’
What do you consider the biggest challenge for your business?
Jan Huysmans: ‘Our store has 30,000 products. We have to provide accurate information about all these items. The product assortment continues to grow. Creating content is an ongoing task. People need the right information to be able to make a decision online. This goes way beyond product information. With blogs and videos, we help them decide. Offline, we make a difference because our store managers are expert salespeople who assist customers with specific advice. Digitally, we help customers navigate with labels like “the expert’s choice”.’
What should e-commerce players focus on in the future?
Jan Huysmans: ‘Sustainability continues to be a major focus. The Right to Repair legislative proposal at EU level states that the consumer has the right to have electricals repaired, including outside the warranty period. With this legislation, Europe wants to extend the lifespan of appliances and devices. Store managers in our sector have to be prepared for this. That means: making spare parts available, organising take-backs, and informing customers and employees. There would need to be a reverse logistics chain, as it were.
Making the last mile – the final part of a parcel’s journey to the customer – greener continues to be an important focus for every player. Via local hubs and stores, bicycle couriers or electric vehicles, the sector must keep working on greener alternatives.’
At the most recent Gumption Café, Jan Huysmans talked about these e-commerce trends. Interested in the next Gumption Café? On October 25, supply chain flexibility experts share their insights. Stay tuned for more news.
At the most recent Gumption Café, Jan Huysmans talked about these e-commerce trends. Interested in the next Gumption Café? On October 25, supply chain flexibility experts share their insights. Stay tuned for more news.
Connect+ engaged valueXstream as a partner in the transition to e-commerce
valueXstream guided the transition to e-commerce at Connect+'s logistics distribution centre (DC), at that time based in Bruges.
Connect+ engaged valueXstream as a partner in the transition to e-commerce
‘Previously, the DC’s main task was supplying the stores’, explains Marc Van Hoeck of valueXstream. ‘Now, it also had to pick parcels, ship them for delivery through parcel couriers, and guarantee fast delivery to the end customers. We redesigned the distribution model and set up a tendering system for the selection of parcel delivery services.’
‘In e-commerce, speed of handling is crucial. Parcels ordered before 10:30 p.m. have to be shipped the same day. Therefore, we optimised the physical organisation of the stock, as well as the layout of the warehouse to enable efficient picking, packing and shipping.’
‘The new approach was translated into the warehouse management system, with great attention to the master data and the controlling process. We implemented KPIs for monitoring and adjustment. To optimise the DC’s restocking process, we introduced product lifecycle management. We increased delivery speed by improving inventory management and ensuring that the organization flexibly provided people for the e-commerce shipping process.’