Finding retail success: switching from bricks to clicks

                      

Integration of online retail with in-store has become imperative in the world of today.

• The online retail market is a crowded and highly competitive one. There is increased competition from pure online e-tailers which have been set up for digital commerce from the get-go while ‘heritage’ brands are fighting with other multi-channel retailers.
• There have been instances of retail brands transitioning from high street to online around 2012, but their online presence was short-lived. The primary reason for this downfall was that such brands had no unique offering to the market.
• Integration of online and offline sales portals is the major challenge of successfully running a brick & click store. Inventory, in particular, must be kept in sync to prevent overselling or underselling. If a single inventory is drawn from, a non-available item could be accidentally sold, but if separate inventories are used, an available item could needlessly sit in stock.
•  In general, use of a single POS system for both online/offline components of the store is the best solution. It needs to be an automated, real-time system that syncs inventory across all channels if it is to streamline and simplify accounting processes.

So, what are some other important things that retailers need to do to ensure success in the long-term?

Firstly

• such brands need to embed a cultural focus on data. The beauty of e-commerce allows companies to know everyone who comes into the online ‘store’ and can track their behavior as they browse and buy.
• It is also possible to design options to suit each shopper as they browse stores, creating a suitably tailor-made offer for every customer on a one-to-one basis. Retailers in this position should take note from other retailers who have survived similar transitions and learn from their approach in this area. 
• From real-time targeted promotions to improved email-tailoring as well as efficient use of social media, transitioning businesses need to make the most of every shopper touch-point with a clear focus on personalization if they need to have a realistic go at the heels of the more established online retailers in this area. 
• There is a word of caution here though – if there is too much focus on historical data, the shopping recommendations become self-fulfilling. It is crucial to understand the trends and utilize them to predict future purchases, rather than fruitlessly propagating advertising to promote the products the customer was intending to buy in the first place.

Secondly

• They need to ensure they are evolving the brand to remain relevant in today’s world, what with Millenials being a large portion of today’s target consumer. The collapse or closure of many retail stores primarily stemmed from a failure to update stores and adapt to changing customer requirements in the face of competition. 
• For example, understanding its online retail site was outdated and not in tune with the modern shopper. Retailers looking to grow and evolve with the market will need to ensure they refresh and revive established brands while maintaining its unique propositions to survive.

Third

• There must be a readiness to adapt to changing shopper needs and this must be done on a regular basis and with pace. 
• Being agile isn’t about getting it right the first time, rather it is about taking advantage of the fact that the digital space allows retailers to test and in turn learn from mistakes faster. It is imperative that retailers must trial new initiatives, get them live within a matter of weeks, figure out whether or not they are performing, and then adjust accordingly. 
• Those retailers who have successfully straddled the omnichannel delivery system have been able to adapt this ‘fail fast’ mentality in their initial experimentation programme.

Finally 

• switching from bricks to clicks is about getting the basics right. The reasons many e-commerce websites fail is because they make it harder for people to shop. 
• The foundations of the business’ site have to be up-to-date and utilize the latest technologies correctly in order to create a frictionless shopping experience. 
• When homepage banners direct to the wrong product pages or sites are not adapted for mobile platforms, shoppers simply give up and take their business elsewhere.
• There is hope for fallen high-street retailers as they transition online, but to survive the fierce competition and fast-paced e-tail world, they need to look to leaders in the industry (and beyond) for best practice.