People talk about the difference between conventional and online retailing, and talk about how conventional retailing is facing new ‘challenges’. These challenges are clearly demonstrated by the dire situation confronting Australian retailers in the current market.
The cost structure of bricks and mortar vs Online is one issue, GST on international purchases another, but it all comes back to shopping experience and the perception of value for money.
Online seems to have the price edge, but as any good retailer knows, price isn’t everything.
Anything that is a recognisable commodity, based on brand or even functionality - a pair of Levi jeans, a Samsung 2122 TV, a TAG Heuer watch, 100 feet of rope, a USB drive - does well online. The key reason being, you know what you are getting.
Some pundits talk about customer service, handling problems…the practical upshot is, you have to send it away if its broken. Does it matter to whom? Its usually a factory repair shop nevertheless. Online operators know this trust is a fundamental cornerstone to their business, and in my experience, superior to many traditional shops.
Improved customer service pre-sale is obviously a good start. Granted, not every retailer has untrained staff with limited product knowledge on the floor, but with cost cutting, the trend is obvious. And likewise, not everybody wants the attention, all the time. I think its nothing new, in terms of the ‘personal shopping assistant’, just a return to the good old-fashioned quality retailing many high standard operations still practice.
Consider that in part of any considered online shopping process, users can consult product specifications, product reviews and comparisons from multiple third party sources, testimonials about the online retailer themselves, location of service centres and precise service policy, etc. With this kind of resource, do you as a shopper, need a salesperson?
Where online has trouble competing, is in the ‘touchy feely’ department. Will those shoes really fit? How does that silk jacket feel, and is it well made? And with liquidations and sale or special items, the impulse purchase, meandering past them online is a bit more difficult. And of course, besides size, fit, quality, there’s also smell, colour, sound, texture….
What does online have to offer:
Video
Zoomable and rotatable images
Virtual colour changes
User configurable options
and, virtual dressing rooms
So, this is the area where traditional bricks and mortar retailers still have the edge. This is the area where they need to exercise their competitive advantage, because, the online retailers are closing the gap. And a few years down the line, when the NBN brings superfast broadband to the Australian consumer, there will be even better solutions.
And still, what will stop the savvy consumer from going out to find what they want in a shop, then look for the best price online?
Virtual Change Rooms For Online Clothes Stores: Pictures, Photos
Matthew
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Tags: Strategy, Opinion by admin
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