In retrospect, there has been a raging rival between traditional and online retailing. This economic game is actually being dominated by the e-commerce due to its special offers such as convenience, lower price, and free shipping. Thus, traditional retail’s disadvantages were being exposed.
One of the best examples of this case is retailer RadioShack’s filing for its second bankruptcy in two years in 2017. This renowned American chain of electronics stores has placed the future of its remaining stores in doubt probably because of giant online retails such as Amazon, which offers cheaper pricing with just a two-day shopping option.
Thereafter, a news flares up that Amazon seeks to purchase some of RadioShack’s stores. This has proven the valued speculations in the past years that push the idea of “online sellers indulge in bricks and mortars”—or largely referred to as “the rise of clicks to bricks.”
Given as example is Warby Parker—an e-tailer that offers low-cost glasses with a marketing strategy of letting the possible consumers try their frames at home and return it through the mail. Not to mention, Warby Parker has established 14 physical locations across the United States. Other examples are Bonobos—an online menswear brand—which opened 10 physical stores and the beauty-box subscription retailer, Birchbox, which freshly opened its 4,500 sq ft flagship store in New York.
As time flies, pop-up store or flash retailing is getting its place into the heart of other retailers. Take, for example, Zappos: Zappos has opened its temporary 20,000-square-foot venue over the last holiday season to demonstrate its apparels and shoes, and let the customers purchase it. Considering an $8 billion market that increases 16 percent per annum over a five-year period, pop-up retail stores became a popular scheme for online retailers that seek cheaper trial in physical space.
Market insights and demands made the e-commerce retailers realize that potential consumers are into seeing and inspecting the products or items in real life than that of putting their trust in online photos and information. With that being considered, Bonobos launched its physical location named Guideshops—a one-on-one experience, with a Guide, who will be with you through the product line, and follows up with all the information you need to place your perfect order. This is after the taking of idea that customers prefer to touch and feel clothing before purchasing.
And from there grew the marketing scheme of “integrated shopping experience” that lets the consumer experience both online and offline worlds at its best. In Bonobos’ Guideshops case, their main goal is mainly to present showrooms and don’t make offline sales, while some retailers have grabbed the opportunity to indulge in omnichannel—offering online goods in real life.
A prime example of this is Macy which lets shoppers purchase online and pick up in stores. Shoppers find ease and convenience on this system on the grounds that they don’t have to pay for shipping fees and wait for the product/s to be delivered.
On the contrary, the challenge for the clicks-to-bricks model is the expenditure of both online and offline presence maintenance. Online retailing reigns over traditional retailing because retailers could omit the cost required by putting up a physical shop. However, online retailers—who aren’t used to pay rent, hire salespeople or leverage middlemen—must revamp their operations system to be able to put up a physical space, which will surely affect the pricing.
Well, investing in a brick and mortar for an online retailer is a make or break decision. It’s just a matter of taking a risk and investing in something that might build or might bust the success of a business. Apparently, for well-established companies that can afford to go in for omnichannel customer experience, the integration of clicks and bricks a concrete investment.