The Future of Shopping:
Summary:
The article throws light on conversion of shopping from retail to digital and
signifies the importance of “omnichannel” that is the mix of retail and digital.
Amy, age 28, needs a coat for which she videoconference her janitor at the
retail store, Danella. She browses customer reviews for the product she found
at Danella and looked for better deals, if any. Further, she heads to the nearby
Danella retail store to get her online selections. She tries other items but finds
out through barcode scanner that it cost lower in another store.
The above scenario is fictional, and it is not as fancy as it might seems. The
world has already witnessed the technological advancement in shopping and
retail. Price transparency and plenty of information has already run retailers by
the storm.
In 1960’s the world was took over by discount chains such as Walmart, and
almost after 50 years a wave of change came back which redefined consumer
expectations. This new wave of change is likely to outdate the predefined
formats.
In 1990’s a new era of ecommerce started with the advent of dot-com. This
dot-com bubble was soon burst due to slowing economy and absurd
strategies. This collapse wiped out the ecommerce retailers and made a shift
from irrational excitement to economic reality. This economic reality has
blown up the revenue charts in the United States, United Kingdom and Asia-
Pacific. Also, digital retailing has become highly profitable as compare to
traditional discount stores.
The world of shopping has now entered the “Omnichannel retailing”, which is
a multichannel approach to sales that seeks to provide customers with a
seamless shopping experience through websites, catalogues, television etc.
Digital retailing is growing extremely fast because it is comfortable and
customer friendly. The average customer is satisfied with online shopping.
Digital retailing has got many advantages such as 1-click checkout etc. Digital
retailers are now spending huge amount of money to attract the top notch of
technical talent.
The world is revolutionised with the advent of smartphones and online
shopping; however, the traditional retailers are facing loss as they are not yet
ready for digital innovations. These retailers are although best at physical
retailing, but the modern world has gone far away from that.
Other than computer illiteracy, these retailers were also left behind by the dot-
com bubble due to overpriced acquisitions. Digital retailing has also threatened
the existing store economics and incentive systems which again made the
traditional retailers lag. Traditional retailers also focused on the wrong
financial metric, in time of ROI they focused margins. Retailers also did not go
well with the innovation system They believed that their customer will always
be there, but they were wrong. The omnichannel has already changed the
world.
The modern style of shopping requires to redesign the strategy by facing
reality. The ground reality lies in the fact that the new technology is coming
faster and is cheaper. In the book, Idealized Design, the author threw light on
how to dissolve tomorrow’s crisis and the retailers of today need the same
type of mentality for this digital innovation. Customers now want advantages
like reviews and tips and product information and for that purpose the retailer
ned to create innovation that bring vision to life.
The job of retailer is simply defined by three main imperatives; Stock products
that the target customer will want. Raise awareness of what is in the store and
making shopping easy for the customers. The shopping experience, however,
does not only include going to the store but also comparing prices and easy
returns.
Retailers of today have got a variety of options such as coupon codes to create
awareness of their products. By using these tools retailers can identify their
targeted customers. Omnichannel retailers can use different methods to
attract their target customers, some exactly as the past and other may need
innovation. The trick is to identify each segment unique features.
Physical stores can also attract customers through innovation and ideas that
that the customers may want to experience. This may include water show,
motion-simulation ride within the premises of the store. Physical stores will
still prevail if they convert their liabilities into assets.
The omnichannel organisation needs a separate team with autonomy, talent,
and knowledge. It needs to study characteristics of its most talented executives
and develop training programs for new individuals.
In the end I believe that the retailers will know that digital and physical arenas
complement each other rather than competing and this will increase sales and
cut costs thus becoming retailer friendly. Retailers who learn to understand
and take advantage of both physical and digital shopping, will lead the way.
