Keeping up with consumer demand and improving the shopping experience is a key to success in today's world. The shopping experience must be fast and efficient sometimes, rich and experiential other times, and always intuitive and accessible. COVID-19 has ushered in a new era of expectations for consumers with online retail, which must be aligned with traditional retail offerings. So, does the rise of "e-commerce" signal the end of "physical retail"? Are physical stores on their way out? Where does brick-and-mortar retail stand in the future? Now let's dig deeper into this!
Brick-And-Mortar vs E-commerce: Who’s Winning?
Digitalisation has made everything available to consumers at their fingertips. The youth of today are also inclined towards using smartphones. Therefore, more and more people are shopping online. On the one side, you have a conventional shop where you can go and check or feel products before buying, while on the other side, there is a digital platform where prices can be compared among offline and online stores simultaneously.
The rise of the eCommerce industry has undoubtedly changed the experience and expectations of customers. The trend of online shopping has reduced the customer's time to go outside in this hectic lifestyle plus there’s no parking hassles, no crowding, no queue at the cash counter, no bag carrying hassles, and no sales pressure from the sales staff. However, the traditional way of shopping or the in-store experience is still a preferred choice for many.
The offline mode has its advantages, which cannot be ignored like immediate availability of the desired product, value-added services in stores, touch and feel of the product, quick trials to decide what to buy and what to avoid, etc. Retail is still dominated by brick-and-mortar stores as the vast majority of people still prefer to purchase goods in conventional stores. It is unlikely that traditional offline shopping methods will disappear from the market anytime soon. The best customer experience hence can be achieved by combining both online and offline modes or using an omnichannel strategy.
As brick-and-mortar stores are coupled with a digital app, online deliveries transform the brick-and-mortar business model by eliminating lines, cashiers, and the entire checkout experience. Customers can easily shop with the mobile app by scanning the barcode. IoT and sensors would enable the app to track when customers take something from the shelf or return it, and then update the cost in their account. Data collection is also improved by connecting the online and offline experiences.
By using the omnichannel model, you will be able to achieve the highest efficiency and results. The key, however, is to find the right balance between a convenient in-store visit and an online shopping facility with proper price management. Combined with conventional retailing, online deliveries enable retailers to provide more availability, drive sales, and integrate digital touchpoints. To put it simply, the omnichannel retail model improves customer satisfaction and offers more channels for purchase at the same time.
Omnichannel is the Way Forward
Today, online and offline shopping is no longer seen as separate experiences. Online shopping, in-store shopping, and mobile apps are now used interchangeably by retail consumers. They want the freedom to shop however they find most convenient at the time. In-store purchases can be delivered to your home, or you can purchase items online and pick them up at the curb. Basically, Brick-and-mortar retail and e-commerce complement each other, and cannot replace each other. Over 27% of retail consumers and 36% of Gen Z use omnichannel shopping to make purchases, according to IBM.
Omnichannel shopping is the future of retail in the minds of consumers. Therefore, retailers should design buying journeys that are easy to follow for customers, regardless of their path. In spite of the fact that stores are no longer the default means of shopping, they remain integral to the customer journey. Many brands, such as Target, Singapore Airlines, Value City Furniture, Sephora, Disney, and Bank of America, have mastered omnichannel presence. There is a need for other businesses to streamline and digitize their store experiences, and digital and in-store experiences will need to be integrated.
About YRC Consultants
A digitally enabled store is becoming a necessity for consumer retailing. At YRC, we understand the importance of integrating physical and digital operating platforms which allows companies to maximize their strengths in each channel. With years of experience dealing with online and offline stores, our consultants help our clients become renowned names in the retail business sector.
FAQs
How is e-commerce influencing traditional retail?
It is impossible for traditional retail and e-commerce to replace one another, rather they complement each other. Online retail influences traditional retail by enabling retailers to offer more availability, drive sales, and integrate digital touchpoints. With traditional retail stores connected to online deliveries, it revolutionized brick-and-mortar stores by eliminating lines, cashiers, and the entire checkout process.
How is online different from traditional retail?
Shopping online is very convenient, as you can shop at any time and from anywhere, whereas traditional shopping can be time-consuming, but it allows you to actually see and feel the products before purchasing them. This is the main difference between online shopping and traditional shopping.
What is the most significant advantage of online shopping?
There is no doubt that the greatest advantage of online shopping is its convenience. The digital space makes it possible for people to purchase anything they desire from the comfort of their own homes. Due to the fact that online stores are open 24/7 and can be accessed from anywhere with internet access, it is easy to fit online shopping into your schedule no matter how busy you may be.
