How Retailers Can Beat Inflation Like a Pro With These 5 Tips
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Budget concerns and inflation shock are causing noticeable shifts in consumer behavior, a head-spinning turnabout since the pandemic days of 2020. We went from not having access to enough goods to now not having the right goods at the right price points. Heading into the holiday season, retailers will need to look sharp and be able to deliver value to the increasingly cost-conscious consumer — with frictionless product discovery and digital shopping experiences, relevant inventory, and personalization.
Those are a few of the insights gleaned from a recent eMarketer webcast on how retailers can better combat the effects of inflation, with pragmatic recommendations from experts including Amy Eschliman, managing director of retail solutions strategy and industry engagement at Google Cloud; Alexis Hoopes, vice president and head of e-commerce and direct-to-consumer (DTC) at Mattel Inc; and Elissa Quinby, head of retail insights at Quantum Metric. We’d like to share five key takeaways that retailers can adopt.
1. Be prepared for earlier holiday planning. Budget-conscious buyers are planning their purchases earlier than ever. According to our partner Quantum Metric’s latest Retail Benchmarks research, 40% of U.S. consumers and 30% in the UK have already started their holiday shopping1. At Mattel, Alexis noted, “We’ve learned to be nimble and early for our consumers, and to have products available for them when they’re ready to shop.” With higher prices, she added, “Consumers are preplanning and researching more, viewing product detail pages multiple times to check a higher-price item before adding it to their basket.”
Quantum Metric’s same research also shows that while average cart values grew between January to July 2022 — larger than they were at the same time last year1 — consumers were shopping less frequently. Because of higher prices, 37% of shoppers are now pre-planning and purchasing items all at once to help keep to their budget1. Amy observed. “That means retailers need to make it super easy for customers to find what they want to avoid shopping-cart abandonment.”
Retailers who make it easier for shoppers to find the right products, by providing Google-quality search and recommendations, can help reduce cart abandonment and increase conversions.
2. Get a handle on out-of-stock issues. While many of the supply-chain issues that surfaced during the pandemic have cleared up, inventory continues to be a challenge in retail. During the 2021 holiday season, Google/Ipsos research shows that consumers saw a 253% increase in “out of stock” messages versus pre-pandemic2. Elissa further pointed out that a great majority of both U.S. and UK consumers experience out-of-stock issues several times a month. It’s a fluid situation, however, with retailers facing bloated inventory as consumer demands quickly pivot from, for example, branded goods to generic or white-label items. “In the next six months or so, you really need to make sure you have the right inventory to meet consumer demands,” she advised.
The need for end-to-end visibility and the ability to act in real-time across the supply chain has never been more pressing. Google Cloud and our partners are tackling the top supply chain issues head on with solutions that enable end-to-end visibility, analytics and alert-driven event management as well as AI solutions and automation to streamline processes like procurement, fulfillment, and delivery.
3. Introduce value: communicate the quality of the product and the experience. While rising prices are paramount for many shoppers, it’s a common misconception that consumers are making purchase decisions based solely on price. Alexis remarked, “In e-commerce, we talk about price, product, service, and experience. Price is only one of the pillars for consumers. At Mattel, we are fully focused on product and experience. What makes this special? How do we connect directly in new ways to the consumer? Create ‘wow’ moments and deeper connections. When we think about value for our consumers, it’s the strength of the products that will drive the purchase.”
Elissa also noted that while consumers are doing a lot of comparison shopping, it’s really about value, whether a high-quality product or a high-quality experience. Quantum Metric’s Continuous Product Design solution, which is built with BigQuery, ingests data across multiple digital touchpoints, including from mobile and web applications, and connects customer signals to every stage of the product lifecycle to help deliver the products and experiences that customers actually want.
4. Ensure consistent experiences across channels. Today, consumers crave the cross-channel shopping experience. “The channel experience has gone from online to in-store to now everywhere,” Amy commented. “We call it ubiquitous digital shopping.” Elissa added that 75% of consumers do most of their shopping digitally. However, mobile drives 67% of digital traffic, but just 49% of sales.1 “Recent trends in traffic and conversion rates by device show that we can expect the most traffic for the big sale days on mobile,” she said. “People are looking for discovery and awareness, maybe even adding items to the cart as a placeholder or reminder. But they prefer to complete a sale on a desktop. It will be critical for retailers to offer a consistent experience, especially on major sale days like Black Friday and Cyber Monday.” Elissa also advised wrapping up any experiments with product and site design early, making sure to understand the customer experience holistically across the organization and prioritizing efforts to eliminate friction.
Consumers now expect to be able to shop wherever and whenever best fits their needs, whether in a store, on your website, through your app, or from within a social media ad, and have it be a consistently good experience no matter how they first entered or exited your commerce site. Google’s 2022 Retail Marketing Guide provides useful insights and tips on how to grow your online and in-app sales.
5. Personalize touchpoints to build loyalty. Connecting with your customer base and making sure they understand the value of your offering is essential. Alexis noted that the key is to keep your messages fresh as the holiday shopping season expands, providing new messages as they keep coming back to your store. “We need to engage them by helping them find what they are looking for at the right time,” she said. “Recognize that they are doing more planning and wish-list building early, then buying last-minute gifts at lower prices towards the end. Make sure those are front and center.”
Alexis also pointed out that today, consumers are providing more data points with the products they view or the items sitting in their carts. “What’s so great about e-commerce is that we can use all of this to create more personalized, direct messages targeted to those consumers,” she commented.
Amy recommended continuing to focus on conversion with product discovery and personalization, harnessing customer data to drive insights and action. “Any company’s biggest asset is their data. Using it in as many ways possible and activating it across the company is incredibly important,” she remarked. “Take advantage of your first-party data to activate everything from marketing campaigns to a more efficient supply chain. For every customer who comes to one of your digital properties, make sure your product discovery is as easy as possible. Pay attention to your recommendations, driving personalization to make that experience as unique and fruitful for the customer as possible.”
Achieving these objectives requires a modern cloud data warehouse and activation of a customer data platform. Retailers can explore how Google Cloud’s advanced data capabilities and our ecosystem of partners can power a customer data platform that supports more personalized marketing, shopping experience, and customer service.
While these are our key takeaways, we invite you to register to watch the on-demand webinar, “5 Ways Retailers Can Combat the Effects of Inflation,” for even more insights.
- Quantum Metric Retail Benchmarks, “Adjusting for Inflation.” The report is based on aggregated browsing behavior from January to July 2022, paired with a survey of 3,400 consumers in the U.S. and UK.
- Google/Ipsos, Holiday Shopping Study, Oct 2021 – Jan 2022, Online survey, US, n=7,253, Americans 18+ who conducted holiday shopping activities in past two days
A New Milestone: Istio Comes Closer to Cloud-native Ecosystem
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Today we are excited to announce that Google and the Istio Steering Committee have submitted the Istio project for consideration as an incubating project within the Cloud Native Computing Foundation (CNCF). This is a significant milestone for Istio and its community, and we are thrilled to reach this next step in the evolution of the project.
Google and Istio
Google originated the Istio project, which alongside Kubernetes and Knative, is a critical part of cloud-native infrastructure. The Istio project has found success and maturity in its current model — being adopted by hundreds of organizations and bringing in over 4,000 developers for IstioCon.
For over 20 years, Google has helped shape the future of computing with its open source contributions and has invested deeply to unlock innovation for our customers. Istio extends Kubernetes to establish a programmable, application-aware network using the Envoy service proxy. Istio works with both Kubernetes-based and traditional workloads, and brings standard, universal traffic management, telemetry, and security to complex deployments. Finding a home in the CNCF brings Istio closer to the cloud-native ecosystem and will foster continuing open innovation.
The Istio journey
We started to develop Istio in partnership with teams at IBM and Lyft in 2016 based on patterns that were being used to connect Google production applications. Google’s security focus complemented the traffic management focus of an open-source project published by IBM, and those two teams decided to collaborate on Istio directly. Istio was launched “fully formed” in May 2017, with the v0.1 release featuring sidecar-powered traffic control, observability and policy features — the things that today define a service mesh. Istio has been open source from the beginning, and has a governance structure that promotes continuous contribution and project engagement.
By the release of v0.3 a few months later there were users trusting it in production, seeing immediate benefits from its powerful features. The project reached v1.0 in July 2018, and was being used at scale by eBay and The Weather Company. Google led a major re-architecture with the release of v1.5, unifying the control plane into a single service. This change, based on user feedback, reduced administrative overhead, as was later written about in the IEEE Software journal. We also greatly simplified extensibility of the mesh by building support for WebAssembly plugins into Envoy.
Istio is now offered as a managed or hosted service by over 20 providers, including Anthos Service Mesh, a suite of tools that helps you monitor and manage a reliable service mesh on-premises or on Google Cloud.
The future of Istio as a project in the CNCF
At Google, we believe that using open source comes with a responsibility to contribute, sustain, and improve the ecosystem, and we are committed to improving critical cloud-native projects on behalf of our customers and the community at large. Google has made over half of all contributions to Istio and two-thirds of the commits, as measured by the CNCF DevStats.1 After deciding to adopt Envoy for Istio, Google rose to be Envoy’s number-one contributor.2
Istio is the last major component of organizations’ Kubernetes ecosystem to sit outside of the CNCF, and its APIs are well-aligned to Kubernetes. On the heels of our recent donation of Knative to the CNCF, acceptance of Istio will complete our cloud-native stack under the auspices of the foundation, and bring Istio closer to the Kubernetes project. Joining the CNCF also makes it easier for contributors and customers to demonstrate support and governance in line with the standards of other critical cloud-native projects, and we are excited to help support the growth and adoption of the project as a result.
Istio is key to the future of Google Cloud and if the project is accepted, Google will continue to strategically invest in Istio as a key maintainer and through ongoing investment in engineering for upstream contributions.
1. https://istio.teststats.cncf.io/d/5/companies-table?orgId=1
2. https://envoy.devstats.cncf.io/d/5/companies-table?orgId=1
Taking Partnership forward: Google Cloud VMware Engine Now in VMware Cloud Universal
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As the pace of digital transformation accelerates, our partnership with VMware continues to focus on helping customers successfully navigate their cloud journey and achieve their business objectives through seamless and rapid migration of business critical VMware workloads.
We announced the general availability of Google Cloud VMware Engine in May 2020. Since then we have worked closely with VMware to make it easier for customers to quickly migrate and run business-critical, VMware-based workloads on Google Cloud. Customers are already leveraging the service across a variety of use cases including application migration, datacenter exit, virtual desktop infrastructure, disaster recovery, and spinning up new capacity quickly to meet business needs.
For example, retailer Carrefour migrated its on-premises VMware workloads to Google Cloud without disruption to shoppers or employees while reducing operating costs by 40% and energy consumption by 45%. Once in the cloud, Carrefour was able to leverage its data and AI to deliver innovative customer experiences across online and in-store channels. Similarly, telecommunications provider Mitel migrated thousands of VMware instances across 30 data centers to Google Cloud in less than 90 days, quickly achieving increased stability, scale, and security.
Today, we announced the continued growth of the Google Cloud and VMware partnership with the addition of Google Cloud VMware Engine within VMware Cloud Universal. Google Cloud VMware Engine delivers a cloud-native VMware experience and enables you to rapidly migrate to the cloud without changes to your apps, policies, or tools. Once you migrate your VMware workloads to Google Cloud, you can accelerate digital transformation through seamless access to services such as BigQuery for real-time data analytics and cloud-native container-based architectures on Kubernetes.
With VMware Cloud Universal, you will be able to accelerate migrations of your workloads and applications to Google Cloud through purchase of Google Cloud VMware Engine from VMware and its partners, allowing you to flexibly purchase credits, and leverage existing spend and unused VMware Cloud Universal credits. The program will offer the following benefits:
- Financial flexibility by letting you redeem VMware Cloud Universal credits for Google Cloud VMware Engine
- Streamlined consumption by enabling you to burn down your Google Cloud commits while purchasing from VMware
- Use of existing VMware licensing investments through the VMware Cloud Universal program for Google Cloud VMware Engine
With Google Cloud VMware Engine, you can take advantage of Google Cloud’s highly performant, scalable infrastructure with fully redundant and dedicated 100 Gbps networking, providing 99.99% availability to meet the needs of the most demanding workloads at very low costs. By providing a consistent VMware environment natively in Google Cloud, you can quickly migrate your VMware workloads to Google Cloud without changes. Deep and unique networking integrations and capabilities such as multi-region and multi-VPC connectivity, further ease the migration of complex enterprise networking topologies to Google Cloud. With rapid provisioning of private clouds across 13 global regions, you can also take advantage of on-demand capacity to serve your infrastructure needs with a cloud-native VMware environment in Google Cloud.Once in the cloud, you can take advantage of other Google Cloud services such as BigQuery and Cloud Operations to gain data-driven insights and unify operations.
Getting started
With Google Cloud VMware Engine as part of VMware Cloud Universal, Google Cloud is a compelling cloud destination for your VMware workloads. You can learn more about how to get started with the service and get additional detail around use cases and pricing on our website.
Recapping Google Cloud VMware Engine’s Latest Milestones
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We’ve made several updates to Google Cloud VMware Engine in recent weeks—today’s post provides a recap of our latest milestones. Google Cloud VMware Engine delivers an enterprise-grade VMware stack running natively in Google Cloud. This cloud service is one of the fastest paths to the cloud for VMware workloads without making changes to existing applications or operating models across a variety of use-cases. These include rapid data center exit, application lift and shift, disaster recovery, virtual desktop infrastructure, or modernization at your own pace.
In fact, Mitel, a global provider of unified communications-as-a-service to 70 million business users across 100 countries, migrated 1,000 VMware instances to Google Cloud VMware Engine in less than 90 days and improved its monthly operational output four times.
In our last update, we focused on several innovative capabilities around networking, reach, and scale. Let us take a look at the highlights we released since our last installment.
Fast provisioning of a dedicated, intrinsically secure VMware private cloud
With Google Cloud VMware Engine, you can spin up a VMware private cloud in about 30 minutes. You can also scale your VMware-based infrastructure on-demand with dedicated hosts located in secure Google data centers. Let us look at what’s new:
Autoscale: The ability to elastically and programmatically manage infrastructure resources to align with business needs or what is called “right-sizing” is a core capability of an IaaS platform. With autoscale, Google Cloud VMware Engine users can leverage policy-driven automation to scale the nodes needed to meet the compute demands of the VMware infrastructure.
Autoscale:
- Addresses seasonal spikes in demand, gradual increases of utilization, or new projects being onboarded or expanded due to disaster recovery events.
- Analyzes the CPU, memory, and storage utilization to give you the controls to scale Google Cloud VMware Engine nodes up or down.
- Ensures that storage consumption does not exceed the recommended limits for maintaining the Google Cloud VMware Engine service-level agreement.
- Reduces overhead on IT teams by automating capacity monitoring and enabling sufficient availability of resources based on thresholds. Note that safeguards for maintaining minimum capacity and maximum capacity can be configured to ensure there are boundaries to the automation.
Learn how to set up Autoscale.
Mumbai region availability
Google Cloud VMware Engine is now available in the Mumbai region. This brings the availability of the service to 12 regions globally, enabling our multi-national and regional customers to leverage a VMware-compatible infrastructure-as-a-service platform on Google Cloud. For more details, please read the press release.
Enterprise-grade infrastructure
With 99.99% availability for a cluster in a single zone, fully dedicated 100 Gbps east-west networking with no oversubscription, and all nonvolatile memory express storage, Google Cloud VMware Engine provides the highest performance required for the most demanding workloads. Let us look at what’s new:
Preview – Google Cloud KMS integration: You already have the ability to bring your own keys to encrypt your vSAN datastores. With this new capability, organizations that want to eliminate the overhead of managing external key providers can leverage a Google managed key provider, using Cloud KMS. This brings increased flexibility in securing workloads and data by enabling vSAN encryption by default for newly instantiated VMware Private Clouds. This feature is currently in Preview.
HIPAA compliance: Since April, Google Cloud VMware Engine is Health Insurance Portability and Accountability Act (HIPAA) compliant. This opens the service up to healthcare organizations, that can now migrate and run their HIPAA-compliant VMware workloads in a fully compatible VMware Cloud Verified stack running natively in Google Cloud with Google Cloud VMware Engine, without changes or re-architecture to tools, processes, or applications. Read more in this blog.
NSX-T support for Active Directory: With NSX-T support for Active Directory, you can now leverage your on-premises Active Directory as one of the lightweight directory access protocol identity sources for user authentication into NSX-T manager. This extends the theme of being able to leverage your on-premises tools with Google Cloud VMware Engine. For more information, read the documentation on how to set up identity sources.
vSAN TRIM/UNMAP support: For space-efficiency, vSAN allows creating thin-provisioned disks that grow gradually as they are filled with data. However, files that are deleted within the guest operating system (OS) do not result in vSAN freeing up space allocated. To increase space efficiency, guest OS file systems have the ability to reclaim capacity that is no longer used, using TRIM/UNMAP commands. vSAN is fully aware of these commands that are sent from the guest OS and enables reclamation of previously allocated storage as free space. We have enabled TRIM/UNMAP for vSan by default in Google Cloud VMware Engine.
Simplicity in experience and operations
With Google Cloud VMware Engine, you only need to worry about your workloads—not patching, upgrading, and updating the solution layer, for fewer interoperability issues and infrastructure maintenance. IIn addition, we have pre-built service accounts to enable your third-party VMware-supported tools and solutions to work seamlessly in VMware Engine. Access to Google services privately over local connections is also natively supported, enabling enrichment of existing applications and modernization over time. Finally, this service brings the power of Google Cloud Virtual Private Cloud (VPC) design by natively providing multi-VPC, multi-region networking that’s unique. Let’s look at what’s new:
Dashboards for Day 2 operations: To speed up cloud transformation and enable efficiency, Google Cloud VMware Engine administrators can take advantage of Cloud Operations dashboards for the solution. In addition, administrators can create custom policies through cloud alerting and enable notifications via channels of their choice (SMS, email, Slack, and more). For more details on how to set up cloud monitoring, please refer to Setting up Cloud Monitoring.
For the latest updates, bookmark Google Cloud VMware Engine release notes.
Thanks to Manish Lohani, Product Management, Google Cloud; Nargis Sakhibova, Product Management, Google Cloud; and Wade Holmes, Solutions Management, Google Cloud; for their contributions to this blog post.
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Sky News live streamed the results from 150 of the 650 constituency counts in the U.K. while competitors, who did not have live video from as many counts, had to wait for slower independent data services to report the results. Sky News also delivered all the live streams over the Internet via YouTube, providing a service that none of its competitors offered.
Sky News faced a unique set of technical challenges in order to stream video from the constituency counting stations to YouTube and for TV broadcast. For streams to be used on air and be made simultaneously live via YouTube, each stream needed to be delivered to both Youtube and the Sky News studios. The streams from the field could not simply be sent to a receive server in the Sky News studios, as would be done for a regular news live.
So the company turned to Google Compute Engine, because it could quickly and affordably create virtual servers to process all incoming data streams. Sky News didn’t have to set up physical servers and connections.
7 Fantastic Ways Google Cloud VMWare Engine Stands Out from the Rest for Running VMWare Workloads in the Cloud!
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Google Cloud VMware Engine delivers an enterprise-grade, cloud-native VMware experience that is built on Google Cloud’s highly performant and scalable infrastructure. By enabling a consistent VMware experience, the service allows customers to adopt Google Cloud rapidly, easily, and with minimal modifications to their vSphere workloads, bringing the best of VMware and Google Cloud together on one platform for a variety of use-cases. These include rapid data center exit, application lift and shift, disaster recovery, virtual desktop infrastructure, or modernization at your own pace.
Here are seven ways VMware Engine outshines alternatives for running your VMware workloads in the cloud, simplify your operations, and help you innovate faster:
- Dedicated 100Gbps east-west networking
Google Cloud VMware Engine nodes come with redundant switching and dedicated 100Gbps east-west networking with no oversubscription of bandwidth, unlike other options where there is generally oversubscription. This is especially important when it comes to running latency-sensitive workloads. - Four 9’s of availability in a single zone
The service offers 99.99% uptime SLA for a cluster in a single Zone with five to 16 nodes and FTT=2 or more without the need for stretched clusters, which is higher than the alternatives. Further, dedicated connectivity for core service functions such as vSAN and vMotion enables better solution stability and availability. This enables the service to support the needs of enterprise workloads that require high availability.
Note: “Cluster” means a deployment of three or more dedicated bare metal nodes running VMware ESXi and associated networking managed via management interfaces.
- Global networking without complex routing
Google Cloud VMware Engine networking is built based on Google Cloud’s powerful networking architecture. With simplified regional and global routing modes—which allow a VPC’s subnets to be deployed in any region where our service is available—you can architect global networks without the need or overhead of creating and connecting regional network designs. You get instant, direct Layer 3 access between them. In alternative cloud environments, you may have to configure special networking between regions, often requiring VPN-based tunnels over the WAN to enable global uniform network communication. This adds to the deployment and operational complexity, in addition to cost. - Integrated multi-VPC networking
Users often have application deployments in different VPC networks, such as separate dev/test and production environments or multiple administrative domains across business units. The service supports “many-to-many” access from VPC networks to Google Cloud VMware Engine networks with multi-VPC networking, allowing you to retain existing deployed architectures and extend them flexibly to your VMware environments. In addition, by providing multi-VPC networking, you can pool their VMware needs—say for QA and dev—to a smaller set of clusters, effectively reducing their costs.
For more information about the end-to-end networking capabilities and services available in Google Cloud VMware Engine, please refer to the Private Cloud Networking for Google Cloud VMware Engine whitepaper. Here, you’ll find details about network flows, configuration options, and the differentiated benefits of running your VMware workloads in Google Cloud.
- Unified, cloud-integrated model
Google Cloud VMware Engine is a fully managed Google first-party service, operated and supported by Google and its world-class team. With fully integrated identities, billing, and access control, you have a simpler end-to-end experience that is different from other services. You access Google Cloud VMware Engine service via the Google Cloud console, like any other Google Cloud service. You can also access other native Google Cloud services privately from your VMware private cloud running in Google Cloud VMware Engine over local connections. - Flexibility in third-party ecosystem compatibility
With Google Cloud VMware Engine, you can set up existing VMware on-premises third-party tools or products that require additional privileges by using a solution user account. This uniquely enables operational consistency, ensuring that the tools you have invested in and used over the years work on Google Cloud VMware Engine. Furthermore, in key areas such as vSAN data encryption, you have the choice of not only using Google Cloud Key Management Service (KMS)—which is turned on by default on vSAN datastores—but also external KMS providers such as HyTrust, Thales, and Fortanix. - Dense nodes with high storage:core and memory:core ratios and fast provisioning
Google Cloud VMware Engine nodes are dense. Each node is powered by Intel® Xeon® Scalable Processors and comes with 36 cores, 72 hyperthreaded cores, 768 GB memory, 19.2 TB NVMe data and 3.2 TB NVMe cache storage. This, along with oversubscription, leads to high consolidation ratios and compelling storage:core per dollar and memory:core per dollar. In addition, you can rapidly spin up these nodes in a VMware private cloud often in under an hour, enabling on-demand, VMware-consistent capacity in Google Cloud for your needs.
These are just a few examples of customer-centric innovation that set Google Cloud VMware Engine infrastructure apart. In addition, migrating to Google cloud can save you up to 38% in TCO. Get started by learning about Google Cloud VMware Engine and your options for migration, or talk to our sales team to join the customers who have embarked upon this journey.
The authors would like to thank the Google Cloud VMware Engine product team for their contributions on this blog.
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