VTEX's APAC Chief on Building Future-Proof Digital Commerce Solutions for the AI Era

In an era where artificial intelligence is reshaping the future of digital commerce, VTEX is positioning itself at the forefront of this transformation. Prakash Gurumoorthy, General Manager for Europe and APAC at VTEX, reveals how the company's composable commerce platform is helping global giants like Samsung, Whirlpool, and Motorola navigate the AI revolution. With recent studies showing VTEX customers saving up to US$5.8 million by switching from legacy systems, Gurumoorthy shares insights on how VTEX's MACH architecture, AI-powered solutions, and innovative marketplace capabilities are redefining the digital commerce landscape for enterprise brands across Asia Pacific and beyond.

1. Can you explain VTEX's MACH (Microservices, API-first, Cloud-native, Headless) architecture and how it benefits merchants in building future-proof digital commerce solutions?

VTEX's composable and complete approach to digital commerce emphasizes cutting-edge technology and forward-thinking solutions, ensuring that brands have the tools they need to build future-proof and scalable ecommerce platforms. VTEX's MACH (Microservices, API-first, Cloud-native, Headless) architecture is an element of our enterprise-focused solutions, aimed at providing B2C and B2B brands with future-proof digital commerce capabilities. This approach, certified by the MACH Alliance and integrated into our platform, reflects our commitment to innovation and adaptability in the rapidly evolving digital landscape. By leveraging microservices, API-first design, cloud-native infrastructure, and headless architecture, VTEX empowers merchants with the speed, flexibility, and scalability required to navigate complex market dynamics, emerging sales channels, and evolving customer demands. 

2. How does VTEX's API-first approach enable seamless integration with third-party systems and streamline the tech stack for merchants?

VTEX's enterprise-focused commerce solutions, rooted in an API-first approach, are designed to facilitate seamless integration with third-party systems and streamline the tech stack for premier B2C and B2B brands. The VTEX platform’s CLI and API support, including features to leverage TypeScript, React, GraphQL, and Node.js, can streamline the development process and allow for seamless integration and data organization. With VTEX's API-first, headless ecommerce platform, you can eliminate integration challenges and create a seamlessly connected ecommerce ecosystem. Use the power of APIs to add any third-party functionality to the back-end of your headless platform without modifying any front-end code.

3. What are the key features and capabilities of VTEX's native Order Management System (OMS) and Marketplace solution, and how do they enhance the omnichannel experience for customers?

VTEX's Order Management System (OMS) and Marketplace solution encompass several key features and capabilities that significantly enhance the omnichannel experience for customers. One of the core enhancements is the streamlined seller and product onboarding process within the Marketplace solution, catering to both B2B and B2C businesses. By accelerating time-to-revenue and reducing operational burdens, this improvement enables merchants to quickly onboard new sellers and products, expanding their offerings and enhancing customer choice. Additionally, optimizing fulfillment processes through the Marketplace solution ensures that orders are processed efficiently, contributing to a seamless shopping experience for customers across various channels.

Moreover, VTEX's upgraded OMS plays a pivotal role in enhancing the omnichannel experience. The improved OMS facilitates change orders and enhances communication channels between merchants and shoppers. This capability is particularly crucial in today's dynamic retail landscape, where customers often expect flexibility and personalized interactions. By enabling merchants to efficiently manage change orders and communicate effectively with customers regarding their orders, VTEX's OMS contributes to a smoother and more responsive shopping experience, ultimately boosting customer satisfaction and loyalty.

Furthermore, VTEX Vision, our semi-annual product showcase of innovative solutions unlocking growth strategies to boost conversion, introduced advanced functionalities for our VTEX Sales App such as efficient management of new product arrivals and top offers, the ability to recover abandoned shopping carts, and real-time inventory checks. Since its launch, the VTEX Sales App has empowered enterprises to seamlessly integrate sales associates into the digital commerce journey, boosting sales and enhancing customer experiences by bridging offline and online commerce. Recent updates allow sales associates to sell both in-store and online products through a single checkout process. They can also manage multiple carts, offer complementary products, and provide value-added services like warranties and customizations. VTEX introduces a new payment provider protocol, making it seamless for brands to integrate their preferred payment providers and use Sales App in any region. These features not only streamline internal operations for brands, but also enhance the overall shopping experience for buyers. The integration of these capabilities within VTEX's ecosystem ensures that businesses can leverage insights and utilize automation to deliver a seamless omnichannel experience that meets the evolving expectations of modern commerce. 

4. What is VTEX's strategy for addressing the evolving consumer behaviour and preferences in the Indian e-commerce market?
VTEX's strategy for adapting to the evolving consumer behavior and preferences in the Indian e-commerce market is rooted in its data-driven methodology, culminating with 'VTEX Vision,' our semi-annual product unveiling of cutting-edge solutions aimed at reducing the barriers to growth. This initiative harnesses data analytics and consumer behavior analysis to uncover deep insights into the future of commerce, including emerging trends, preferences, and purchasing behaviors specific to Indian consumers. These serve as the cornerstone for VTEX's innovative solutions and updates, which are meticulously tailored to meet the dynamic needs of consumers and empower enterprise businesses to navigate the competitive landscape effectively.

Through VTEX Vision, brands gain access to innovative technologies in advertising, AI, data, security, software development and more that enable B2C and B2B enterprise brands to create frictionless commerce that’s ahead of the curve and deliver exceptional shopping experiences that resonate with key stakeholders in commerce.

VTEX also emphasizes seamless omnichannel integration, agility, and collaborative partnerships within the ecosystem. These holistic strategies enable VTEX to provide a comprehensive solution that addresses the unique challenges and opportunities in the Indian commerce market, both online and offline. By remaining adaptive, customer-centric, and technologically advanced, VTEX continues to lead as an example of how commerce platforms can be more than just reliable infrastructure but also provide the insights and products and capabilities to ensure it is working for brands and their needs for today and tomorrow.

5. How does VTEX differentiate itself from other ecommerce platforms, and what are the key competitive advantages it offers to brands and retailers?

VTEX has ascended as the composable and complete commerce platform of choice for renowned household names in B2C and B2B commerce such as Samsung, Colgate, Stanley Black & Decker, Sony, Whirlpool, and many others, due to its ability to solve the diverse needs of global retailers and brands. This includes its innovative solutions that boost conversion rates and offer adaptable customizations.  As part of its core, VTEX's composable and complete platform delivers a unified commerce approach, seamlessly intertwining online stores, marketplaces, and physical retail outlets to deliver a connected commerce shopping experience. This strategy fuels collaboration between VTEX, the vendor in this case, and its customer, which nurtures brand loyalty by providing a collaborative and seamless journey that resonates with today's buyer. Augmenting this approach is VTEX's Modular and Scalable Architecture, engineered for effortless flexibility and expansion in response to market shifts while upholding optimal performance standards. Moreover, VTEX commissioned a "Total Economic Impact" (TEI) study with the globally renowned Forrester Consulting, which assessed the financial impact and contributions of VTEX on enterprises. The report's conclusions identified significant benefits for brands that migrated to VTEX after just three years. This included US$ 5.8 million  saved by switching from legacy digital commerce platforms to VTEX as well as a 133% return on investment (ROI) 

6. Can you share some success stories or case studies of how VTEX has helped its customers achieve their digital commerce goals and drive business growth?

VTEX stands as a globally recognized leader in enterprise commerce, boasting decades of experience in empowering global brands and retailers. Through cutting-edge technology and innovative solutions, VTEX has consistently enabled businesses to achieve their growth objectives with its composable and comprehensive platform.

One such success story involves Motorola, one of the most recognized global telecommunications leaders, which grappled with the complexities and costs associated with managing multiple commerce platforms. By migrating to VTEX, Motorola streamlined its operations, significantly reducing the time and resources needed to launch new stores in diverse markets. This agility allowed Motorola to adapt its e-commerce strategy to comply with regulatory requirements while leveraging rich customer data insights to drive targeted marketing initiatives.

The adaptability of VTEX's platform also enabled Motorola to test and optimize third-party applications continuously, leading to efficient architectures tailored to specific regions and reduced total cost of ownership (TCO). This strategic approach resulted in a remarkable 20% annual growth in Motorola's e-commerce business, showcasing the transformative impact of VTEX's solutions.

VTEX's partnership with Motorola exemplifies its dedication to providing customer-centric solutions that drive tangible business outcomes, making it a trusted ally for brands navigating the complexities of digital commerce in today's dynamic market landscape.

7. Can you provide an overview of VTEX's pricing model and how it compares to other ecommerce platforms in terms of cost-effectiveness and scalability?

VTEX's commerce platform provides a dynamic pricing model, designed to accommodate businesses of varying sizes and sales volumes. This approach includes a monthly fee coupled with a transaction fee that aligns with sales percentages, providing a fair and flexible structure. What sets VTEX apart is its commitment to transparency, as evidenced by the absence of setup or license fees, making it accessible to businesses looking to minimize upfront costs. Additionally, VTEX offers on-demand services with a revenue-share approach, ensuring that costs are directly tied to business performance and growth.

Compared to traditional pricing models found in other platforms, VTEX prioritizes a customer-centric strategy aimed at fostering long-term partnerships and mutual success. By focusing on scalability and adaptability, VTEX enables businesses to grow efficiently and pay proportionally to their volume and operational needs. This customer-centric approach not only promotes financial sustainability but also underscores VTEX's commitment to supporting businesses at every stage of their growth journey.

8. What is VTEX's approach to ensuring the security and compliance of its platform, particularly in light of the increasing cybersecurity threats in the e-commerce industry?

VTEX is taking proactive steps to bolster data protection and security across its platform with the introduction of 'VTEX Shield,' an additional layer of security designed to enhance overall protection and improve threat detection capabilities. This initiative is part of VTEX's ongoing commitment to prioritizing security and ensuring the safety of its operations, ensuring the safety of our customers and their stakeholders. 

VTEX Shield features an Advanced Web Application Firewall (WAF) that defends against common online attacks like SQL injection and cross-site scripting, bolstering the security of digital stores on the VTEX platform. The platform also offers a Pentest Readiness Service for merchants to conduct regular penetration tests, proactively identifying and addressing vulnerabilities to prevent security breaches.

Another key aspect of VTEX Shield is its Security Monitor dashboard, providing real-time visibility into security events and enabling prompt action to mitigate risks. This comprehensive approach aims to enhance Personally Identifiable Information (PII) protection, strengthen security measures, and boost confidence in data security within the VTEX ecosystem.

9. How does VTEX plan to leverage emerging technologies like AI and machine learning to enhance personalization and user experience for its customers?

VTEX's strategic integration of AI goes beyond mere functionality; it's about understanding the needs of enterprises and their target audience on a deeper level to  anticipate needs and optimize workflows for seamless experiences. For the latest edition of  VTEX Vision, we have announced:

1. WhatsApp Campaigns for Tailored Experiences: VTEX combines real-time campaign monitoring, AI-driven customisation, personalised cart recovery messages, and targeted campaigns with the WhatsApp Business Account builder. Personalised client communication is made possible by this connection, which improves sales conversion strategies.
2. AI-Powered Intelligent Search: VTEX uses artificial intelligence (AI) to discover patterns in user behaviour, automatically find and suggest synonyms for search terms, and increase conversion rates by showing users relevant search results.
3. Live Chat and AI-Powered Live Shopping: VTEX offers live chat and AI-powered live shopping features that let users get help right away while they shop. Conversion rates and customer happiness both rise with this interactive feature.
4. AI is utilised in VTEX Pick and Pack Operations to increase efficiency and reduce human error to enhance the overall employee and customer experience. The new ‘Approvals and Transfers’ feature simplifies product replacements and enables other stores to fulfill missing items, enhancing flexibility in managing complex orders.

The updated Admin interface provides a detailed worksheet view for real-time order tracking, with instant notifications for pickers, time alerts, item audits, and transfers. The AI-powered ‘Returns Module’ expedites returns and exchanges, reducing fraud and enhancing shopper experiences. Imagine receiving return feedback within 60 seconds instead of waiting weeks—VTEX now makes this possible.

Overall, VTEX's AI-driven solutions help companies boost conversion with more informed decision making to personalise customer experiences and expedite fulfilment procedures in the ever changing world of commerce, both online and offline. 

10. Can you share your insights on the current state of e-commerce in India and the challenges faced by brands and retailers in this market?

India's e-commerce industry is booming, projected to reach a staggering US$ 350 billion by 2030, with social commerce expected to hit US$ 16-20 billion by FY25. Fueled by initiatives like 'Digital India,' the sector spans diverse segments like B2B, D2C, C2C, and C2B, all witnessing significant growth. Despite this promising outlook, brands and retailers grapple with intense competition, logistical constraints, regulatory compliance, and the need to foster consumer trust and loyalty as customers require more personalized experiences. .

Nevertheless, amidst these challenges lie abundant opportunities for immense  innovation and growth. Investments in digital infrastructure and emerging technologies like 5G are poised to enhance the commerce landscape. Furthermore, initiatives  enabling an environment to prosper for industry expansion will only foster a thriving ecosystem driving collaboration,and technological advancements that are pivotal in shaping India's continued journey as one of the largest and most recognized  e-commerce powerhouses  globally, empowering brands and retailers to navigate this evolving landscape with ease. 

11. How does VTEX's partner ecosystem contribute to its success, and what are the key criteria for selecting and working with partners?

VTEX is set to unveil an enhanced partnership program aimed at fostering deeper collaboration with key stakeholders across a wide range of industries and sectors. This initiative acknowledges the extensive influence of commerce on all aspects of business, ensuring VTEX maintains a comprehensive approach to collaboration and innovation. The objective is to empower partners, both prospects and existing, of varying sizes and capabilities, to understand the various ways they can contribute to the future of commerce. This fosters a dynamic ecosystem that encourages innovation and efficient value delivery.

Recently, we have announced partnership with Pinterest to help consumer brands broaden their social commerce footprint and connect with more customers. The collaboration enables customers to seamlessly integrate their product catalogs, create Pins, and run performant shopping campaigns on Pinterest. VTEX plays a pivotal role in translating the inspiration discovered on Pinterest’s platform into authentic consumer connections for many of the world’s most popular brands powering their commerce experience. This will cultivate many meaningful engagements that reinvigorate organic growth and foster a vibrant community as we continue to create the best unified commerce experience. VTEX customers such as Whirlpool, Blaisten, and Easy are among the early testers of the partnership. Our customers now leverage Pinterest catalogs to enhance customer journeys from inspiration to action.

And building on our continued partnership with Google to help enterprise brands boost discoverability and sales, in the second edition of ‘VTEX Vision’ we have announced updates to Google’s Merchant Connector with VTEX. It allows sellers to feature their products in organic Google search listings and utilize price comparison and tracking tools. Brands can now effortlessly map their entire catalog with Google Shopping ads, activate offers for specific payment methods, and implement Google Pay with a single click. Soon, Google Pay will also be integrated into VTEX Fast Checkout.

12. What are VTEX's plans for future growth and expansion, both in India and globally?

VTEX has ambitious plans for future growth and expansion. Our composable and complete commerce platform is designed to leverage its cutting-edge infrastructure and strategic initiatives to tap into the rapidly expanding commerce ecosystem. In India, VTEX has developed organic connections that have resulted in a perfect fit to demonstrate how our platform allows us to expand our client base and enhance our product offerings to cater to the unique requirements of international markets. This includes forging regional alliances, improving localization capabilities, and delivering tailored solutions to our customers and prospects, no matter where they are. 

On a global scale, VTEX is committed to accelerating its growth trajectory through strategic initiatives that we look forward to sharing in the very near future. Overall, VTEX is dedicated to fostering sustainable growth for enterprises in commerce.

Additionally, just a few weeks ago we announced the acquisition of Weni, a leader in customer service solutions fueled by advanced AI. This acquisition strengthens VTEX's ability to deliver a seamless, end-to-end customer experience platform tailored to the customized needs of its global enterprise brands and retailers using AI. VTEX has shown remarkable economic impact with enterprise brands seeing USD $5.8M in cost savings after migrating from legacy systems to VTEX.