Is "product data" the key to creating a place where customers can shop with confidence in online supermarkets and e-commerce? Beisia's Mr. Kurokawa discusses the ideal and reality of product master data.

On March 21, 2024, we held Lazuli Academy Vol. 1 seminar, “The Ideal and Reality of Product Data in Online Supermarkets/EC.” We invited Mr. Shin Kurokawa, who is engaged in the online supermarket business at Beisia Co., Ltd., to speak about the ideal and reality of product data*1 management, which is important for customers.

This was a valuable opportunity to gain many insights into what retailers, manufacturers, and wholesalers should work on together when designing experiences that enable customers to shop safely and securely.

In this report, we introduce the content of Mr. Kurokawa’s seminar with a focus on the following three points:

• The importance of product data in online supermarkets/EC

• The current situation and challenges in retail product data management

• The ideal and reality of product data preparation

*1 Product data: A multidimensional asset that goes beyond the basic information contained in conventional product masters (transaction data and sales management), creates the foundation for customers’ product purchase decisions across diverse sales channels, and supports data-driven decision-making. By using data such as category information, feature tags, and review information—data that has traditionally been overlooked—companies can extract insights that reach deeper into customer needs and achieve improved customer experiences and accelerated business growth.

The importance of product data in online supermarkets/EC

Due to digitalization and the diversification of sales channels, customers can now purchase products even when they do not have the physical item on hand.

Advances in technology have also increased the amount of information retailers can handle, including not only product information but also customers’ purchase histories and behavioral data.

Under these circumstances, preparing accurate and comprehensive product data is essential in order to provide the most suitable product information for customers.

The current situation and challenges in retail product data management

At present, retail product data is managed in systems optimized for in-store sales. The product information retailers have is mainly used to run logistics and sell in physical stores. Therefore, since this information is based on the premise that customers inspect the physical item before purchase, it is often difficult to use as information for e-commerce or online supermarkets.
In addition, data quality and formats are not standardized, making it difficult to share data among manufacturers, wholesalers, and retailers.

The ideal and reality of product data preparation

Ideal product data is what enables customers to understand products and provides the information they need, in the right form and at the right time, so they can purchase with confidence.
However, in reality, there are challenges such as the following:

• The people who create the product master are different from the people who use it

• The return on the cost and resources required to prepare product data is low

• Preparing product data is not a core business for companies across manufacturing, sales, and distribution

In response to these challenges, Mr. Kurokawa pointed out that the need for services that can deliver product data from upstream to downstream will continue to grow. Going forward, product data platforms such as Lazuli PDP, which has been introduced at Beisia as a product data hub, are expected to become more widespread.

Lazuli PDP is a platform that enables companies to obtain product data in the form they need, when they need it. By manufacturers, wholesalers, and retailers working together to utilize PDP, they will be able to streamline product data preparation and provide a better shopping experience for customers.

Summary

Product data in online supermarkets/EC is an essential element for realizing safe and secure shopping for customers.

Although there are many challenges at present, it is possible to realize an ideal product data environment through cooperation across the entire industry.

We hope this report will help you understand the importance of product data in online supermarkets/EC and serve as a reference for future initiatives.

You can watch the archived video here.

Our company works to transform the flow of product information among manufacturers, wholesalers, and retailers. If you need help with integrating or managing product masters, or expanding missing data (such as competitor product information or categories), we look forward to hearing from you at Lazuli.

For inquiries to Lazuli, click here.