Today’s consumers are more likely to spend money on quality experiences and services like travel and restaurants, sports, adventures etc. Retailers witnessed this trend of building memories with loved ones across all ages as opposed to buying products from stores.
Online shopping has gained momentum in the recent years and it’s not expected to slow down any time soon. According to recent studies, customers are more likely to buy online as compared to physical stores. Therefore, it is quicker and easier to find what you want on the mobile site and it plays a huge part in the business today and will continue to grow.
About 20 percent of the businesses today are e-commerce. But on the other hand, according to US census data about 90 percent of the consumers still prefer to go shop to touch and feel products before purchase. Therefore, there will always be a need for brick and mortar stores out there.
There is a huge misconception regarding the boom in e-commerce; the idea that if you are not online then you are not present. The CBRE’s head stated that most of the revenue generated from e-commerce is going back to the brick and mortar brands. Retailers fail to compete with the existing e-commerce companies as they are misled with the perception that e-commerce is killing physical stores.
Technically when a customer adds an item on their e-cart on their website, the transaction taking place is going back to the sales report of the brick and mortar brands. Therefore, allowing retailer and brands to expand their sources to generate revenue via the online platform.
Brick and Mortar Retailers
In regard to the UK survey taken by 14,000 customers on why they choose to shop in a physical store, is regardless of demographics shoppers prefer to see, feel and try out the item before making any purchase as their sentiments are attached to it.
Traditional brick-and-mortar stores are only disappearing because they aren’t modernizing their business models. A mix of e-commerce and brick-and-mortar can set your business up for success in the long run. As we know, e-commerce really is on the digital forefront as everyone is shopping online through their cell phones. However, while consumers are spending up to 7 to 10 hours a day being connected to their phones. Moreover, customers are also doing more and more shopping in store as they look for more experiential platforms.
Advancements in Technology
With the advancement of technology e-commerce platforms is just an email, phone call or chat box away. Most of the consumers today are looking for transparency and satisfying experience. Customers are keen on knowing every bit of information about the product or service. In other words, they tend to abandon if the following queries aren’t answers by the e-commerce organization. But the main challenge e-commerce faces is how to deliver a differential personalized experience to every customer. In addition, to introduce strategies to connect better with shoppers present in the market.
However, retailer stores have built stronger relationships with their customer by providing immediate customer service in-store. Having the right person at the right time to close the deal has enabled retailers to close massive deals and increase conversion and repeat purchase. Customers prefer reaching out to employees in the store rather than a digital interface.
Generally, e-commerce businesses cost a lot lesser money to start and run than a physical storefront. And therefore, a lot of online businesses are starting up in the market. In the world of e-commerce, popular niches are much more competitive than physical retail stores. After all, you’re just not competing with a store in the vicinity, but competing globally.
Recently, e-commerce business has shifted to a brick and mortar store despite the cost of rents, inventory warehousing, employees etc. Few customers today still hesitate to make an online purchase, due to various factors like fraud, adulterated goods etc. E-commerce brands are losing out on many consumers due to poor lack of brand identity. Retailers who don’t value their customers shall crash. According to experts, a physical store encourages customers to engage with the brand and strengthen trust and loyalty between brands and consumers.
Written By: Binoy Matthew
Lead Code Architect