What can retailers leverage to reach e-commerce success.
We saw retail giants like Nemin’s Marcus and Macy’s close doors but theres a chance independent retailers can survive the next generation of shoppers.
In today's rapidly evolving retail landscape, the lines between online shopping and brick-and-mortar stores are becoming increasingly blurred. With consumers expecting a seamless shopping experience across all platforms, fashion businesses must adapt to meet these changing demands. This blog post explores the relevance of online shopping in brick-and-mortar retail and how fashion businesses can leverage their physical stores to reach online customers.
I served my time inside the retail tornado from 2009-2019 and saw first hand the demise of historic retailers that long existed when my grandmother shopped during her youth. The funny part of knowing the history of retail is seeing how it will fail in the future if change comes too slow. This is the storm most retailers are in now, even those who have made it through the turmoil of the pandemic. Fashion is producing products faster than ever and customers can search through hundreds of stores before buying the same shirt at the best price.
The Shift to Omnichannel Retail
The Rise of Online Shopping
Online shopping has grown exponentially over the past decade, offering convenience, a broader selection, and competitive pricing. The COVID-19 pandemic accelerated this trend, with many consumers turning to e-commerce for their shopping needs. According to a report by eMarketer, global e-commerce sales reached $4.28 trillion in 2020, highlighting the significant shift towards online shopping.
The Enduring Value of Brick-and-Mortar Stores
Despite the rise of e-commerce, brick-and-mortar stores remain a crucial component of the retail ecosystem. Physical stores provide an immersive shopping experience that online platforms cannot replicate. They allow customers to see, touch, and try on products, fostering a deeper connection with the brand. Moreover, physical stores serve as fulfillment centers for online orders, enabling services like buy online, pick up in-store (BOPIS) and same-day delivery.
Leveraging Brick-and-Mortar Stores to Reach Online Customers
Enhancing the In-Store Experience
Fashion businesses can attract online customers by enhancing the in-store experience. Interactive displays, virtual fitting rooms, and personalized styling sessions can make physical stores more appealing. Additionally, offering in-store events such as fashion shows, trunk shows, and exclusive product launches can drive foot traffic and create buzz both online and offline.
Seamless Integration of Online and Offline Channels
To effectively leverage brick-and-mortar stores, fashion businesses must integrate their online and offline channels seamlessly. Implementing a robust omnichannel strategy ensures a consistent brand experience across all touchpoints. This includes:
Unified Inventory Management: Synchronizing inventory across online and physical stores to provide real-time product availability.
Cross-Channel Promotions: Offering promotions that can be redeemed both online and in-store, encouraging customers to engage with both channels.
Customer Data Integration: Using customer data from both online and offline interactions to create personalized marketing campaigns.
Utilizing Physical Stores for Fulfillment
Physical stores can serve as mini-distribution centers, optimizing the fulfillment process for online orders. This approach, known as ship-from-store, allows retailers to use their store network to fulfill online orders more efficiently, reducing shipping times and costs. Additionally, offering services like BOPIS and curbside pickup caters to the growing demand for convenience among online shoppers.
Implementing Technology-Driven Solutions
Incorporating technology into brick-and-mortar stores can enhance the shopping experience and drive online sales. Examples include:
Mobile Apps: Developing mobile apps that provide in-store navigation, product information, and personalized recommendations.
Augmented Reality (AR): Using AR to create virtual fitting rooms, allowing customers to try on clothes digitally.
Beacon Technology: Employing beacons to send targeted promotions and notifications to customers' smartphones as they browse the store.
Case study: Sephora: Blending Beauty and Technology
Overview
Sephora, a global beauty retailer, has masterfully combined its online and offline channels to offer an innovative and immersive shopping experience.
Strategies Employed
Sephora Virtual Artist: This augmented reality (AR) feature in the Sephora app allows customers to virtually try on products before purchasing, bridging the online-offline gap.
In-Store Tablets: Equipped with the Virtual Artist feature, these tablets enable customers to explore and test products digitally while in-store.
Omnichannel Loyalty Program: Sephora's Beauty Insider program is integrated across all channels, allowing customers to earn and redeem points both online and in-store.
Results
Enhanced Customer Experience: The use of AR and in-store technology has elevated the shopping experience, making it more interactive and enjoyable.
Boosted Sales: The omnichannel loyalty program has increased repeat purchases and customer retention, contributing to overall sales growth.
Key Takeaways
Sephora’s innovative use of technology showcases the potential of AR in retail. By integrating its loyalty program and offering interactive digital tools, Sephora has successfully created a cohesive and engaging omnichannel experience.
What’s next for Gen Z shoppers?
Generation Z is characterized by their unique shopping habits that prioritize convenience, sustainability, and technology. They love having everything at their fingertips and value a brand that has a positive message. This cohort often favors online shopping, taking advantage of social media platforms and influencer recommendations to discover new brands and products. They tend to gravitate towards companies that align with their values, often choosing sustainable and ethical options over traditional brands. Price sensitivity is also a crucial factor, as many Gen Z consumers seek affordable yet stylish choices, frequently utilizing discount apps and price comparison tools. Moreover, experiential shopping, whether online or in-store, plays a significant role; they appreciate immersive experiences and personalized service that enhance their purchasing journey.