Today, if you take up any paper or more realistically read an article online, there is something related to shopping online, the boom in e-commerce or blog that paints a grizzly picture for retail stores. Now if we took all this seriously we all need to get started on creating our Taobao or Amazon accounts. Now the question becomes do I honestly think that this is the end of retail or maybe it is just the dinosaurs dying off and making way for the new top species…I'll take the latter idea.
What is happening?
There has been a massive shift in how we the consumer purchase, couple this with the rise of technology, which has created a nasty storm for companies that were already not coping with the new shoppers. Trying not to sound to cliché but machines(technology) are taking over, technological innovation has moved with pace providing new and unique ways to interact with stores without every stepping out of the house. The other key component is the millennials, they have played a significant role in the market reshuffle, in all honesty, they are just not interested in going to a physical store. More and more companies have realized that these new consumers are very different from the previous generations which were more driven by consumption of thing but now it is about the experience.
These two factors have determined the rise and fall of some industries over a few years. Let's face it; they have the spending power.
Reality about the Industry
Retail has been doing well this year.
Stores are here to stay; this will never change. Moreover, this might sound old school, but consumers have the opportunity to fit or try out an item before it is purchased and an online store can never replace that. Having had this exact conversation before I can concede in some areas where e-commerce is excellent e.g. your living in a place that doesn’t have a specific brand or item you the consumer wants. However, with all things being equal, buying something, getting it the same day (waiting a few more days depending on location) returning it if doesn’t fit, look or feel the way you thought, based on the description. Then wait more days when you send it back to receive a new item with the hope, that the next one will be better is just not cutting it.
The Revolution will be Televised
The question most retailers have to answers now is, how do I improve my store experience for this generation (Millennial). That is right, the user experience for millennials is everything. As life and information move much faster, just giving away their money for an item with a name means ZERO. It is about what you have to offer them, that would make them willing to part ways with their money and give something to look forward too when they are coming back.
Shops of the Future experts help brands into the arduous task of analyzing their customer journey in a unbiased way. If you would like to understand how your customers experience their journey, please contact us through our contact form or on our homepage.
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