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Digitalization is forcing the retail sector to reinvent itself, and the transition requires constantly reassessing consumer needs and developing technical marketing skills, explains Darius Zumstein, an expert in e-commerce and digital marketing.
Digitalization is forcing the retail sector to reinvent itself, and the transition requires constantly reassessing consumer needs and developing technical marketing skills, explains Darius Zumstein, an expert in e-commerce and digital marketing.
What are the main challenges facing Swiss retailers, and how can they address them?
Darius Zumstein: Competition in e-commerce has intensified considerably, particularly due to the presence of foreign platforms offering very low prices. The solution is to increase visibility, for example through social media. Newsletters nevertheless remain the most cost-effective tool. According to our latest survey, seven out of ten online retailers use them through solutions such as Mailchimp, Brevo or Mailpro, which allow content to be personalized for each customer based on their profile. Retailers also need to optimize their presence for conventional search engines (SEO), as well as for chatbots based on generative artificial intelligence. When hiring, companies should give preference to candidates who are proficient in digital marketing tools.
What are the first steps retailers should take if they want to move into e-commerce?
Zumstein: E-commerce is not just about technology; fundamentally, it is about strategy. Choosing the right business model is of course crucial, whether it is a conventional online shop, an online marketplace or subscription-based services. The internal organization also needs to be structured appropriately. In a small business, a single marketing manager can handle all marketing production with the help of AI tools.
However, setting up an online shop should not be regarded as a one-time operation. After launch, it remains absolutely essential to regularly analyze customer needs, best-selling products and sales channels. It is an ongoing process.
What skills do companies need to develop?
Zumstein: Proficiency in e-commerce platforms, data analysis and AI has become essential. But human skills are equally important. In particular, employees’ adaptability, continuous learning and critical thinking when dealing with machine-generated content need to be strengthened. These aspects should be addressed with young people during their initial training, as well as through continuing education. Companies would also benefit from strengthening cooperation between their marketing, sales and IT departments in order to better manage their online commercial activities. It is better to act sooner rather than later, or risk losing competitiveness to more agile competitors.
Online sales and digital marketing involve significant costs. Is this a barrier for SMEs?
Zumstein: To some extent, yes. But it is important to point out that these costs have been falling steadily: setting up an online shop now costs only a few hundred to a few thousand francs a year. These amounts are rarely an insurmountable obstacle for companies. Solutions such as Shopify and WooCommerce have made e-commerce much more accessible. AI also provides valuable assistance with programming and coding, which helps to lower the cost of entry.
What are the limitations of automation and generative AI?
Zumstein: Automation and generative AI create new risks that need to be anticipated and managed. Perhaps the most striking example is “AI slop,” meaning content generated in bulk by bots. Distributing such content can damage a company’s image rather than enhance it. Employers therefore need to continue investing in human resources by strengthening their staff’s skills and taking the time to provide training when upskilling is necessary. However powerful the tools may be, they cannot replace the people who use them.
What is the future of physical retail in the face of the growth of e-commerce?
Zumstein: It depends very much on the product category. For goods that require physical proximity or a sensory experience, such as food or luxury goods, physical stores remain dominant. Today, only 3% to 4% of consumers prefer to buy their food online rather than at a supermarket or grocery store. Nevertheless, several Swiss electronics and sporting goods retailers have already closed their doors in the face of competition from online-only players such as Zalando. The overall trend remains toward the gradual closure of many physical points of sale in favor of a digitally focused omnichannel strategy.
Darius Zumstein, a specialist in e-commerce and digital marketing, has been teaching at the University of Applied Sciences and Arts Northwestern Switzerland (FHNW) since 2024. Previously, he held various research and teaching posts at the Zurich University of Applied Sciences (ZHAW) and the Lucerne University of Applied Sciences and Arts (HSLU). He also worked as a specialist in data management and digital analytics at Raiffeisen Bank and the insurer Sanitas.
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