Just in the last couple of weeks, there have been many reports that both consumer electronics brands as well as physical retailers like malls, protesting against online retailers offering discounts on products. I find this to be quite amusing and immature. If you haven't been following the news, i am referring to news articles like this one here
(http://www.business-standard.com/article/companies/malls-want-brands-to-end-deep-discounts-online-114022700032_1.html)
While price is a big factor, that drives shoppers to online channels, physical retailers should not get so hung up about cheaper prices being available online. what about assortment, range, availability, customer service and other value-added services and not to forget the all-important sensory experience of shopping in stores/malls? What are physical retailers doing in these areas to attract customers to come to their stores and not go online?
As many surveys and studies have shown, Showrooming is inevitable but retailers need to look beyond that and think of seamless shopping experiences across their physical stores and digital channels, and find ways to address the needs of the consumer. The fact that certain categories have a higher propensity to move online (like electronics, books, music etc) makes it difficult for physical retailers to compete. However, there are plenty of examples of physical retailers competing effectively with online sellers, via innovative solutions that embrace the strengths of both the physical and digital worlds. Nordstrom's clever use of social data (specifically using Pinterest boards) is one such example.
The good news is that, around the world, a vast majority of shopping still happens in the physical store and while online commerce is growing, it is relatively tiny even now. But retailers really need to stop living in denial and accept that online commerce is inevitable and digital technologies are empowering customers like never before and providing unprecedented information at their fingertips. The question is, do physical retailers want to embrace these very technologies to their advantage or not?
Complaining and protesting has not been proven to be an effective strategy to win over customers.
(http://www.business-standard.com/article/companies/malls-want-brands-to-end-deep-discounts-online-114022700032_1.html)
While price is a big factor, that drives shoppers to online channels, physical retailers should not get so hung up about cheaper prices being available online. what about assortment, range, availability, customer service and other value-added services and not to forget the all-important sensory experience of shopping in stores/malls? What are physical retailers doing in these areas to attract customers to come to their stores and not go online?
As many surveys and studies have shown, Showrooming is inevitable but retailers need to look beyond that and think of seamless shopping experiences across their physical stores and digital channels, and find ways to address the needs of the consumer. The fact that certain categories have a higher propensity to move online (like electronics, books, music etc) makes it difficult for physical retailers to compete. However, there are plenty of examples of physical retailers competing effectively with online sellers, via innovative solutions that embrace the strengths of both the physical and digital worlds. Nordstrom's clever use of social data (specifically using Pinterest boards) is one such example.
The good news is that, around the world, a vast majority of shopping still happens in the physical store and while online commerce is growing, it is relatively tiny even now. But retailers really need to stop living in denial and accept that online commerce is inevitable and digital technologies are empowering customers like never before and providing unprecedented information at their fingertips. The question is, do physical retailers want to embrace these very technologies to their advantage or not?
Complaining and protesting has not been proven to be an effective strategy to win over customers.
