Innovation

Zerca allows small stores to access the digital environment with a simple and comprehensive operating model (including the logistics solution) and with affordable economic conditions, with little speculation. Zerca offers all possible means and tools that empower small shops in a global dynamic market.

The digitalization of markets is essential to reach buyers who cannot travel to the market but do not renounce the quality of their goods. This connects directly with the 8th SDG: Decent Work and economic growth. In other words, instead of buying things that come from other countries, Zerca gives its clients the possibility to opt for local products. This is a great growth opportunity for local retailers, as they can compete in the market at the level of the large operators, which would be impossible taking into consideration their business volume. Zerca boosts the marketplace and becomes the #1 for local commerce sales in Spain.

In the line of innovation of bringing the product closer to the consumer, this company positively impacts the environment, as developing their activity entails the reduction of the carbon footprint. Production does not come from foreign countries, but from nearby shops, so the transport distance is much shorter, and therefore less fuel is consumed. All these reference to SDG 12: responsible consumption and production.

Moreover, the 9th SDG: Industry Innovation and Infrastructure, is very present in the company, due to the fact that they focus on a new business model based on digitalization. It offers face-to-face visits of a digitization advisor to the shop and the acquisition of skills and knowledge. By doing so, it facilitates the access of small and medium-sized enterprises to learning about this process to fulfill one of their objectives; train companies to become self-sufficient.

Inspiration

The existence of this company is not merely the beginning of one more economic activity, but the illusion of a person to solve a real problem that he lives and experiences on a daily basis. In other words, the raison d'être of this company lies in a real and concrete need of society, both in Spain and worldwide. This need is to adapt local commerce to the current behavior of the average consumer. Therefore, this need involves two elements. Firstly, consumer behavior has changed radically in the last decade, and it has accelerated with the pandemic and the war in Ukraine. We have become accustomed to having a wide variety of options in the same marketplace, without wasting time going to the store and picking up the product.

Obviously, suppliers will have to adapt to the behavior of demanders. Secondly, local commerce must also adapt in order to survive. This also means positioning themselves in the new marketplace to adapt to the new consumption model: opportunistic and digital. These businesses have a clientele that they can build loyalty by adapting to the new circumstances. Specifically, David Rey lives in Zaragoza and his environment conditions his way of seeing the world. Large companies such as Amazon, Decathlon, Aliexpress, Adidas, General Motors (Opel), BSH Electrodomésticos... have set up in Zaragoza, and the number is increasing due to its strategic suitability for distribution to large cities. David has experienced firsthand how these large companies cover much of world trade and in turn many small businesses in Zaragoza and Spain in recent years, for various factors (loss of customers, local costs, etc.), have closed. This specific situation that he has experienced in Zaragoza can be extrapolated to Spain and the whole world. For all these reasons, David decided to found Zerca to act as a bridge between the new behavior of the average consumer and local commerce, which needs to adapt to the new times.

Overall impact

Zerca has digitized more than 1,500 small stores in Spain, with an average of approximately 3 workers per store. Its last-mile logistics model takes advantage of the resources of Correos, with which it has signed a collaboration agreement. The idea is to use the standardized and usual logistics flow of its network, without generating "extra routes", so the carbon footprint of a sale on our platform is much lower than that of other online retailers.They start from a vocation of service to small traditional commerce (compatible with their profit motive). Its intention is to digitize local and national neighborhood and village stores, to help them survive in an uncertain environment and thus ensure that they remain service distributors, especially in areas of low population density.In 2022, they closed more than 50,000 electronic transactions that remain in Spain, national vendors, and have a reduced environmental impact (store collection is prioritized and existing and optimized logistics circuits are used).

Business benefit

The company's innovation is going to have an expected impact on its activity,which is going to rise as well as its profit. This benefit will be huge and many aspects, however, Zerca expects specific benefits.

• Digitization of 75,000 establishments throughout Spain.

• Integration of the 500,000-strong network of digital guides.

establishments.

• More than 20,000,000 annual contacts between establishments and users.

• Increase in face-to-face traffic to the physical store of 10% over the expected.

• 10% higher than expected without completing the digitization process.

Social and environmental benefit

The innovative business model of Zerca has multiple benefits for society as well as for the environment. First of all, the company stimulates local and small businesses to digitalize. Zerca’s digitizing system is based on individual education and coaching, which stimulates the small Spanish companies to supply their services or products online instead of only in physical stores. Since Zerca was founded, the company has helped 75.000 Spanish companies to integrate in their digital platform. This benefits society as there is more online supply of products/services for customers and it increases the revenues of the local companies.

Secondly, its new consumption model, which is opportunistic and digital, makes it possible to bring the consumer and local retailers/service providers closer to each other. The platform benefits mainly the local companies and thus society. In an increasingly competitive world, in which big (online) retailers such as Zara and Amazon have high market power, it is hard to survive for small retailers/service providers. With the platform Zerca offers, the local retailers/service providers get the opportunity to increase their market share and thus their revenues. Making use of the products local retailers/service providers offer, Zerca does not only boost the local economy, but it is also favorable for the environment. The last mile supplies make the transportation of the products more sustainable. As the platform uses local retailers, the distance between consumer and retailer is not as big as it is with big retailers like Amazon. For example, Amazon has one distribution center in Spain and from this center every product is transported to the consumers in Spain, this distance could be large and thus causes more emission than having a retailer close to the consumer. The companies that are integrated in the platform of Zerca are located close to the customer, which reduces the emission during transportation and thus favors the environment.

Interview

David Rey, Founder & CEO