In the past year, we have seen a lot of online stores expand into the offline realm. As everything seems to be going digital, why are ecommerce sites developing brick-and-mortar stores? For starters, 90% of all sales occur in a brick-and-mortar setting. AND 95% of all retail sales occur amongst retailers that have some sort of brick-and-mortar presence. As the digital age has been reshaping most industries there is a part of digital retail that is moving the opposite way. eCommerce sites are realizing that if they want to gain significant market share, they need to set up physical stores. Once an e-retailer becomes successful (loyal customers, earning revenue, etc.), the next step is to open a physical presence, whatever that may look like (showroom within an existing store, pop-up shop, or brick-and-mortar store). Through digital channels, e-retailers have cultivated different types of customers and brand personalities and moving offline helps translate that aesthetic to an in-store, customer experience that is extremely important.
Although technology is driving the future of the retail industry, successful enterprises are not leaving out the importance of an in-person, customer experience. eCommerce sites see this need to provide seamless customer online to in-store experiences that require having both a physical and digital presence. For e-retailers, establishing a physical presence is a manifestation of the brand culture they have created online where their customers can purchase products real-time and get a real experience that supplements the online relationship.
Moving from online to in-store, consumers expect the experience to be equivalent and seamless. With the same look and feel, successful online retailers can access a customer’s recent online purchase, wishlists and notify them when any of those products are available in-store. With the native experience of eCommerce and comfort of technology, online retailers have an advantage over brick-and-mortar competitors, mastering the full retail chain, online to offline and back again. These companies who master the mobile, in-store, and online experience and track data between the channels will be unstoppable.
Brands that have made the jump from online to offline:
- Amazon – opened a brick-and-mortar store on Purdue University’s campus to allow students to collect textbooks and other products as well as make returns. Future plans to open Manhattan store.
- Birchbox (beauty, grooming & lifestyle) – opened a brick-and-mortar store allowing customers to build their own Birchbox in the store, introducing them to the subscription service and view products that are in current and past boxes as well as top-selling products.
- Warby Parker (eyewear shop) – opened brick-and-mortar stores in trendy neighborhoods in NYC and San Francisco to create an extension of their brand with the same feel as their online presence (high ceilings, art and design books décor, mid-century modern designs, etc).
- Bonobos (menswear e-retailer) – opened a “guideshop” showroom in their office lobby as a fitting room for customers that wanted to try their clothes online.
