05.12.2023 | BJÖRN BAYARD
It is becoming increasingly important for companies to make their product data available transparently and quickly. Whether it’s for online stores, promoting Instagram campaigns, providing sustainability data, or supplying product content for retail partners’ channels, the number of use cases is growing – and so is the complexity of product communication.
Organisations that still manage their product data manually quickly reach their limits against the backdrop of such scenarios. Inefficient communication processes, a long time-to-market, and poor data quality can lead to dissatisfied customers, higher return rates, and a deterioration in relationships with retail partners and competitive positions.
As a result, product information management (PIM) has become increasingly important. Even for smaller companies with a manageable product range, PIM can be a strategically important element today – for example, if the company’s own communication is spread across more and more channels, new target groups and markets are to be developed, or product sales are to be spread across a growing number of retail partners and online marketplaces.
PIM: procurement, management, and distribution of product data
The basic task of a PIM system is to manage and prepare product data in a channel-specific manner. A PIM system therefore stores the requirements of all data recipients for the product information provided in a comprehensive data model. Depending on the industry, this includes different attributes and possible values. In the fashion industry, data such as size, material, or color is relevant, while food retailers rely on extensive data on age restrictions, ingredients, certifications, and logistical information such as packaging sizes.
Depending on the industry, these requirements can quickly become very complex. However, the basic concept is always the same: in PIM, all the necessary information is obtained from the available data sources, structured, mapped in the desired data quality, and made available to the downstream systems and data recipients as efficiently as possible. The desired data quality is determined on the one hand by general criteria such as up-to-datedness, consistency, and correctness, and on the other hand by the requirements of the data recipients regarding the completeness of the information. Which data sources and recipients are relevant must be considered on a case-by-case basis as they have a major influence on the choice of the right PIM system.
The most important data sources include ERP systems, Excel spreadsheets, supplier portals, and the Global Data Synchronisation Network (GDSN). In many cases, product data is also imported from different sources at the same time. To be transferred to the data model of the PIM system, the imported data must first be mapped to the target structure. After this step, the product information can be enriched as required – for example, with product descriptions or marketing texts.
Once the product data is available in the desired quality, it can be transferred to the downstream systems or shared with the recipients. Typical downstream systems include, for example, translation or content management systems and an online store. Other output channels include social media platforms, online marketplaces, global data pools, mobile apps, print catalogues, flyers, and trading partner portals. Of course, Excel tables are still exported from the PIM system and shared with partner companies.
Special features in the industry and trade network
The interaction between industry and retail offers very special dynamics in this context. For manufacturers, the platforms of retail partners are becoming increasingly important alongside their own D2C channels. Instead of using search engines, more and more consumers are turning to their trusted retailers when searching for products. Retailers are also diversifying their sales channels with their own apps and social media channels and are therefore increasingly seen as genuine multipliers for the industry in e-commerce.
PIM requirements of the industry
For manufacturers, however, this means that they must consider the specific rules of each retail channel and provide appropriately prepared product content. This not only makes product data creation complex – it also requires a close connection to digital content. This is even more important as retailers are giving their suppliers more and more options for customising product presentations. So-called Enhanced Content thus enables product communication to be differentiated in line with the brand and demonstrably leads to a higher conversion rate.
Better visibility, higher sales, and strengthening your own brand: effective use of retail channels has many advantages, but it requires a consistently optimised digital value chain, too. This applies not just to the mapping of retail-specific requirements in the creation and preparation of product content – the content must also be played out as efficiently as possible. Brand manufacturers with several retail partners, for example, benefit from a direct connection of their PIM to the GDSN to publish the product content globally, as this eliminates the need for bilateral data exchange with each individual retail partner.
Product data in the context of retail
The topic of product data is extremely important for retailers. Retailers must be able to manage the data of all their brand manufacturers centrally and use it effectively for their product communication. In addition to the complex data models associated with these requirements, retailers need intelligent solutions for efficient onboarding of their suppliers’ product data.
Specially developed supplier portals in which manufacturers can enter their product data via a user interface in accordance with the requirements are among the most effective methods for onboarding. Integrated validation rules ensure that the data is entered in the desired quality so that the PIM can obtain the product data directly from the portal. The second option is a direct connection to the GDSN to obtain the available product data directly. In most cases, retailers rely on a combination of options, but there are usually some manufacturers who still supply their data via Excel. PIM systems can also easily import these tables – especially if they use attributes predefined by the retailer to avoid time-consuming mapping and reworking.
Big picture: The Product Content Lifecycle
For both manufacturers and retailers, PIM is a central software discipline that has increasingly established itself as a core element of effective and flexible product communication in recent years. However, it is important to understand that PIM is just one element of a whole chain of software solutions that form the digital value chain in companies.
This is why the concept of the product content lifecycle is gaining awareness. It describes the entire supply chain, from the procurement of product data and digital content relevant for communication, to its management in PIM and DAM, through to its distribution via channel management and syndication solutions in the various output channels such as global data pools, online marketplaces, social media, online stores, and mobile applications. And because it is a cycle, special analysis tools such as digital shelf analytics ensure continuous monitoring of the effectiveness of the product content at the touchpoints. These findings are in turn used as adaptations in the creation of product content, which ensures the ongoing optimisation of product messages in every channel.
All of this is only possible if the various software disciplines interlock seamlessly and enable optimal data processes. Product content lifecycle management solutions that cover the entire digital supply chain and thus avoid complex architectural and process-related integration projects achieve maximum efficiency in this respect.
Convince yourself and make an appointment with our experts today. We will be happy to advise you.
Best regards
Björn Bayard
