Kenny Lee

VP, PMDO

November 17, 2014

  • Tweet This
  • Share on LinkedIn
  • Share on Facebook
  • Share on Google+
  • Tweet This
  • Share by Email

Future of brick-and-mortar stores

Retailers need to be focusing on optimizing store portfolios, while simultaneously improving their online presence.

6462065807_3dbb0b9e23_z

Will online shopping squeezes brick-and-mortar stores?

Traditional retailers need to select the best sites for stores, determine the optimal number of locations for each market, keep up with consumer expectations of what the in-store experience should be. However, consumer aren’t coming to stores for the prices or the selection as they can usually find better alternatives to both online.

China’s online retail market, which has surpassed that of US as the world’s biggest, and will continue to grow rapidly  to a level threatening brick-and-mortar stores in next few years. According to the official government data, Chines consumer spent US$300 billion last year, 13% per cent more than the US. This figure makes China the biggest market for online retail in the world.

Based on getchee market research, online sales now accounts for approx. 10 per cent of total retail sales but anticipates it will grow 30-40 per cent a year in China market. However, that means that 90 per cent of retail sales are still happening where sales have taken place for hundreds of years: Physical stores, retailers have physical presence to engage with consumers.

Why personalized retails is the future of brick-and-mortar stores?

Consumers prefer to shop in physical stores as it allows them to have a sensory experience – they can touch and feel product, immerse brand experience, and interact with sales associate. Many retailers are taking a page from their traditional compositors by offering an in-person shopping experience that can’t be mimicked on a tablet or smartphone. This heightened focus on in-store experience could be a sign that the retail industry definition of successful store is changing.

Key benefits for retailers and customers

1. Discover customer preference to offer the right product mix, reduce inventory distortion and raise brand awareness.

2. Draw attention to products using catalysts, like mobile payment, phone apps, or special promotion program; increase retention of existing customer and get customers to try new products.

3. Give customer a reason to shop in-store by surpassing the online experience with more relevant product information, interactive self-service stations, and expert insights from sales staff – delivering an immersive brand experience.

4. Allow customer to shop the way they want, using a combined channels (in-store, online, mobile and self-serivce) accommodating their busy lifestyle.

5. Making personal connection by sending an email or SMS wishing them a happy birthday, congratulation on an anniversary, or gifting a beverage 0 making them feel special.

 

The future of retail stores

So instead of concentrating solely on one channel, retailers need to be focusing on optimizing store portfolios, while simultaneously improving their online presence.

Retailers also need to adjust the way they view the value of their physical stores. When online shopping exploded, retailers determined the impact to performance of a store based on its sales numbers. Brick-and-Mortar stores need to be viewed and help consumers discover new products and test ones they have seen online – regardless of where the actual transaction takes place.

Brick-and-Mortar stores capture sales, but they also create value by driving online sales. This means the value of a store for both consumers and retailers is greater then the sales captured within them.

 

 

Joshua Roberts

Creative Director

October 23, 2013

  • Tweet This
  • Share on LinkedIn
  • Share on Facebook
  • Share on Google+
  • Tweet This
  • Share by Email

Tmall Shopping Spree

China's e-commerce store to offer US$48.4 million in gift coupons.

tmall-china-online-store

Tmall, the B2C unit under China’s largest e-commerce company Alibaba Group, yesterday said it will offer 300 million Yuan (US$48.4 million) worth of cash vouchers and encourage consumers to share gift coupons with friends to allow more participants at its annual shopping spree on November 11. Read the rest of this entry »

Sam Ho

SVP, Data Intelligence

August 1, 2013

  • Tweet This
  • Share on LinkedIn
  • Share on Facebook
  • Share on Google+
  • Tweet This
  • Share by Email

3 Reasons Online Shopping Won’t Kill Brick ‘n Mortar

Why in-store shopping might actually be the future of retail.

3 reasons on-line wont kill retail

It’s all the buzz these days. Watch your social feed on Twitter or LinkedIn and you’ll see it eventually.  Headlines foretelling the rise of internet shopping through use of mobile devices. These conversations often predict grim futures for traditional brick-and-mortar retail shops which has many retailers spiraling into “strategy panic” as they frantically consider their next moves. Read the rest of this entry »

Ethan Li

Project Manager

July 18, 2013

  • Tweet This
  • Share on LinkedIn
  • Share on Facebook
  • Share on Google+
  • Tweet This
  • Share by Email

Are Tablet Shoppers Killing In-Store Shopping?

Adapt to shopping trends and stay ahead of the curve.

shopping with ipad

With people increasingly accessing the internet via their tablets, shopping behavior is changing as well. According to a survey related to the online retail market in the UK, mobile commerce grew by 254% between 2010 and 2011, and by a further 300% between 2011 and 2012. 69 percent of tablet owners make purchases on their device every month! But does this mean that in-store shopping is dying?

Read the rest of this entry »

Edward Eng

Business Development Manager

August 14, 2012

  • Tweet This
  • Share on LinkedIn
  • Share on Facebook
  • Share on Google+
  • Tweet This
  • Share by Email

Building Your Brand in Asia

How do you build your brand and connect with sophisticated consumers in Asia?

sophisticated-consumer-asia

It isn’t clear whether some U.S. lines will be well-received in China, where consumers favor luxury European brands and logos. The late entrance of U.S. retailers into China means they have to try harder to build brand recognition and loyalty. “It is easy for a Chinese consumer to understand Gucci, ‘It is expensive, so it must be good, and you must be someone if you have it.’ How does a Chinese consumer understand the history and lifestyle that [a U.S. brand] represents?” said Franklin Yao, chief executive of consultants SmithStreet Solutions.

Read the rest of this entry »

Page 3 of 41234