ZKONG Enables Digitalization in 「Cash-and-Carry」 Market

ZKONG has successfully launched the electronic shelf label activation program for DESCO supermarket chain located in Brazil. The brand has adopted the smart store solution to speed up product information updates, control inventory levels, improve customer experience and try to create an environmentally friendly business operation model.

What attracts customers to 「retail + wholesale」 markets?

As a large superstore with a mix of retail and wholesale models, DESCO maintains a cash-and-carry model for wholesale purchases, i.e., no packing and delivery services are provided to buyers. Therefore, DESCO’s super-low prices and super-rich range of products are exactly its’ “strength”, letting customers be willing to drive to the store and pay for the transportation of goods.

About 「Cash and Carry」

Cash-and-carry refers to the self-service wholesale model of warehouse-type stores. In the current climate of shrinking revenues due to the pandemic and inflation, the cash-and-carry market is gaining traction in Brazil. A report released by McKinsey & Company, shows that the cash-and-carry market has climbed to 40% of the food retail industry in one year and will continue to grow.

In Brazil, more and more residents are choosing to shop with their neighbors at cash-and-carry markets to get wholesale prices that are on average 15% cheaper than supermarkets and hypermarkets. According to a survey, 65% of Brazilian households have visited such stores by 2021, and this sales model has become a daily choice for all social classes.

ZKONG helps self-service wholesales operate efficiently

DESCO is faced with the challenge of timely price update and strict inventory management of tens of thousands of products. ZKONG retail cloud platform allows store staff to update the prices and information of a wife range of products on the shelves, accurately check the inventory levels and upgrade the store image without affecting customer purchases.

Area of DESCO stores are large and the store covers lots of goods displayed on large shelves, including daily necessities, beverage and clothing. The stores need price tags to display tens of thousands of different contents. In ZKONG platform page, each electronic price display can be quickly identified and refreshed, and ZKONG ESL can also synchronize inventory levels in real-time and be used in the warehouse.

Compared with shuttling through hundreds of square feet of stores to find and change one price tag after another, ZKONG transforms these tedious steps into simple operations in front of a cell phone screen and greatly reduces the error rate.

In addition, unlike traditional wholesale markets that lack attention to merchandise display and store image, DESCO, as a large superstore that integrates retail and self-service wholesale with high customer traffic, is also very concerned about creating an in-store shopping environment. ZKONG ESL has simple designs, and it not only is the price tag, but also shelf decoration. In the meantime, shelf edge displays marketing and promotional content in creative ways to enable a more attractive shopping environment.

The End

Through the installation of ZKONG ESL, DESCO has been further digitally upgraded and successfully created an attractive dual-mode shipping environment, providing customers with a better experience and service.