The Transformative Power of Technology in Commerce
In today’s world, technology extends far beyond mere screens, particularly within the realm of commerce. Its impact becomes palpable when it aids in making informed decisions, optimising resources, and enhancing everyday relationships at points of sale. This topic was a focal point during WIRED Futures, where Coca-Cola FEMSA illustrated how digitalisation has reshaped its business model and the way it engages with clients.
The event featured an immersive experience that allowed attendees to explore the coexistence of physical and digital realms. Among influencers, brand advocates, and members of the tech community, discussions took a particularly pertinent turn, examining what occurs when innovation transitions from a mere promise of the future to addressing real-world challenges today.
During the session, Juan Pablo de Velasco García, Director of Commercial Capabilities and Marketing at Coca-Cola FEMSA, engaged in a dialogue with Mael Vallejo, Editorial Director of WIRED en Español. Their conversation highlighted a transformation that commenced long before buzzwords like Artificial Intelligence and Phygital became commonplace in technology discussions.
Shifts in Traditional Commerce Due to Technology
Coca-Cola FEMSA stands as the largest bottler by sales volume within the Coca-Cola System, operating across ten Latin American countries and servicing 268 million people through 2.1 million points of sale, alongside 55 plants and 256 distribution centres. This extensive physical infrastructure has become the foundation upon which a new digital layer has been built.
The pivotal moment for the company arrived in 2020. In response to pandemic-related restrictions, Coca-Cola FEMSA expedited a digitalisation process that was already underway, initiating connections with its traditional channel customers via WhatsApp. This initial tool paved the way for Juntos+, a platform that now plays a central role in commercial relationships with retailers.
The shift was profound; the company transitioned from a model reliant on physical sales visits to one where digital channels gained increasing importance. By 2025, it is projected that 38% of the company’s sales will flow through digital avenues.
However, this transformation transcended the simple act of transferring orders from a notebook to a screen.
Understanding the Phygital Model and Its Impact
The evolution at Coca-Cola FEMSA is rooted in a fundamental principle: the most significant changes in commerce arise not from the physical or digital worlds in isolation but from the synergy between them. This is the essence of the Phygital concept, which merges physical and digital capabilities to enhance the value of each customer interaction.
This aspect is especially crucial in a market where human relationships remain vital. While algorithms can process vast amounts of data, store owners possess intimate knowledge of their customers, their communities, their schedules, and the unique aspects of their businesses.
In this model, technology is not aimed at replacing this expertise but rather at amplifying it.
Thus, Juntos+ has emerged as the cornerstone of an ecosystem that integrates sales, information, relationship-building, loyalty, and digital capabilities. Through the platform, retailers can place orders, access personalised promotions, seek information, track deliveries, and find training content.
The Role of Artificial Intelligence in Enhancing Operations
Artificial intelligence becomes truly valuable when it transitions from a mere technological showcase to addressing specific needs. One example highlighted during WIRED Futures was the suggested order feature, a tool that leverages historical data and contextual variables to recommend products that retailers might require.
The underlying logic is straightforward: despite the complex data infrastructure and algorithms, the goal is to assist customers in making better purchasing decisions to improve their sales.
The platform also generates tailored recommendations and opportunities for each client. For the sales force, this intelligence manifests as actionable insights through Juntos+ Advisor, which delivers data, algorithms, and AI capabilities directly into the field. By the end of 2025, over 70% of the sales force in Mexico and Brazil is expected to utilise these capabilities.
One particularly intriguing point raised during the discussion was that digital transformation was not solely framed as a means of enhancing business efficiency.
Empowering Retailers Through Digital Transformation
For Coca-Cola FEMSA, one of the core purposes of Juntos+ is to empower retailers and collaboratively shape the future. The platform includes tools that can aid these micro-entrepreneurs in their daily operations, ranging from training to accessing promotions, tracking deliveries, and other commercial capabilities.
Additionally, Premia Juntos+ integrates loyalty into the digital experience. The programme has evolved from merely rewarding purchases to recognising behaviours that can foster business growth, including dynamic challenges at the point of sale.
This approach positions technology as a supportive tool that not only facilitates sales but also aims to develop commercial capabilities.
Navigating the Challenges of Digital Transformation
De Velasco explained that one of the primary challenges encountered was changing established habits. For individuals who had worked in a particular manner for ten, fifteen, or even twenty years, the introduction of new tools could evoke uncertainty or fear of being replaced by technology.
The solution involved redefining the role of individuals within the process. If a platform can assist in data processing, route optimisation, or opportunity identification, salespeople can focus on areas where technology cannot easily substitute their contributions, such as understanding customers, grasping their context, and building trust-based relationships.
Coca-Cola FEMSA is acutely aware that digital transformation is not about choosing between humans or algorithms but rather about identifying what each can do best. Today, data can serve as a new system within a business, but its true value lies not merely in accumulation; it resides in transforming it into decisions and translating those decisions into tangible results.