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There are many aspects of our daily lives that we tend to take for granted, at least when you compare it from it’s origins to where we are now. Communication, for example, has come a long way when you look at the evolution of the telephone to the cellular marvels that are housed in just about every pocket around the world. Shopping is another necessary aspect of daily life that has evolved considerably from its origins. Retailers need to understand these changes that are happening now, are going to be crucial if they want to stay in business.
Shopping is another necessary aspect of daily life
Disruption Breeds Change
Shopping is equal parts necessity and leisure activity for today’s population. We go to the store to buy the things we need for daily life such as consumable items and domestic goods. But there’s also the aspect of bargain hunting which thrills some consumers to no end. In either instances, there have been some considerable disruptions throughout the history of commercialism that have changed the scope and shape of the game. These disruptions, according to the Harvard Business Review, take place about every 50 years or so.
Shopping is equal parts necessity and leisure activity for American population
“A century and a half ago, the growth of big cities and the rise of railroad networks made possible the modern department store. Mass-produced automobiles came along 50 years later, and soon shopping malls lined with specialty retailers were dotting the newly forming suburbs and challenging the city-based department stores. The 1960s and 1970s saw the spread of discount chains—Walmart, Kmart, and the like—and, soon after, big-box “category killers” such as Circuit City and Home Depot, all of them undermining or transforming the old-style mall. Each wave of change doesn’t eliminate what came before it, but it reshapes the landscape and redefines consumer expectations, often beyond recognition. Retailers relying on earlier formats either adapt or die out as the new ones pull volume from their stores and make the remaining volume less profitable.”
Omnichannel Shopping, is going to pose a considerable change for brick-and-mortar retailers
The newest disruption, Omnichannel Shopping, is going to pose a considerable change for brick-and-mortar retailers, one that will facilitate the need to adapt or step out of the game entirely.
The Best of Both Worlds: Capitalizing on Omnichannel Retailing
As with just about any industry, when new technology comes into play, you either adapt and succeed or you fail. However, understanding the bridge between having a physical store and an online presence, isn’t impossible. It’s about putting customer service at the forefront. While online sales are great, especially when there are customers who don’t live within easy travel distance to the actual store, brick and mortar stores are still very important. This is especially true when you consider the fact that Amazon, which started exclusively as an e-commerce business, is now building physical locations for their shoppers. Why would Amazon want a brick-and-mortar storefront when their customers can literally shop for just about anything from the comfort of their own homes with a few simple clicks? It’s easy, shopping in store gets shoppers to buy more.
Amazon, which started exclusively as an e-commerce business is now building physical locations for their shoppers
Impulse buys and tactile shopping (the ability to touch and feel things like clothes) actually generate higher sales than shopping online does. A customer can feel the item, take in the sensations of the display and try it out for themselves, rather than trying to guess at it from a screen. This is one reason why retail stores need to keep their physical presence up before delving into the digital realm.
Transportation and Logistics can be a Big Opportunity for E-Commerce
While physical retailers will have to look into making digital investments, digital retailers are gearing up to make logistics investments. Given the rate of growth for online sales, expedited logistics and transportation is a fast growing industry. Consumers want to be able to order their goods and either have them delivered same or next day, or have the option to pick it up at the closest store. In order to make that happen, there needs to be a fairly substantial increase in the flexibility of transportation and logistics. The standards for a company’s supply chain are no longer about just getting goods from A to B. It’s more like A to Z12 and then the logistic support necessary for omnichannel retailers becomes infinitely more complex.
There needs to be a fairly substantial increase in the flexibility of transportation and logistics
Getting the infrastructure in place to make these deliveries in a timely manner will pay dividends for e-commerce companies, an opportunity that many aren’t willing to pass up.