Why Online Retail Brands Must Go Offline or Wither Away
Despite what dozens of headlines in 2017 proclaimed, retail is not dying. It is, however, in dire need of a facelift. Throughout the year, customers continued to change how they shop and as we move into 2018, retailers must respond to these changing behaviors or ignore them at their own peril.
Traditional retail is a thing of the past and, thanks to online shopping, consumers are no longer beholden to its rules. CBRE reports that “U.S. consumers prefer combining online and in-store shopping, making omnichannel platforms critical to retailer growth.” And it’s true. Today’s consumer researches, compares, and shops wherever is most convenient for them. Online? Offline? It’s their choice now. Consumers love online shopping for its convenience, but a webpage can’t give them the full experience they need to fall in love with a brand and truly experience it. A physical retail space can. To compete in the now crowded ecommerce space, online brands gain a huge advantage when they can meet those customers in brick and mortar retail environments.
Some online retailers have been leading the way with this retail transformation. Powerful and influential online brands like Amazon and Warby Parker have disrupted traditional retail offerings not once, but twice. These brands are reversing course to move aggressively from their native online abode to brick and mortar (O2O). Other online brands like Casper and Leesa are learning they don’t need to build their own store at all. Rather, they can have a presence in pop ups or in shared space with well-known retailers, like Target and West Elm. This allows brands to get their products in-store quickly and easily, so customers have a chance to see, touch and try them in person.
Blurring the line between online to offline isn’t a new concept, but it is one that is being experimented with and perfected. In order for online products to come to life for the modern customer, the customer needs to feel that connection to the brand.
Pop Box was created on that very premise: bringing innovative online brands to life in a themed, physical space which allows customers to discover, experience and connect with brands they may never have heard of before.
Even in 2017, 9 out of 10 purchases are made in person. Shopping is still very much a social activity. We all want to touch, feel and try a product before buying and online brands need this physical channel to meet their customers in person. If brands really want to stand out with busy shoppers, they also need to shake things up. The traditional retail modus operandi of putting products on a shelf doesn’t cut it anymore. Today, the brand story needs to be shared.
Pop Box’s purpose is to engage customers at every level: exciting displays, trained brand ambassadors who expertly talk about the product, unique and fun in-store brand events, and socialization and promotion on all our online channels.
Our favorite example is working with the online direct-to-consumer sofa brand, Burrow. The three-seater couch is proudly displayed in the store, along with a looping video that explains its amazing features and the no-tools-required assembly that only takes a few minutes. This is a good start, but it takes even more than that. Our brand ambassadors, who have hands-on experience assembling the sofa, get to laud its unique features, most of which are not immediately visible and merit to be explained or demonstrated.
While the oohs and ahhs are satisfying feedback, they’re more than that. They are testimony to the power of an in-person presentation. To truly convey the brand’s value and unique features, Pop Box holds interactive events like “Build It to Win It”, where customers are invited to actually build the product in-store, closing the last mile between consumer and brand. Such events draw a crowd, deliver on brand awareness while at the same time providing a fun and immersive experience for the customer.
Retail is not dying. But it is adapting. While online shopping may be the most convenient channel to get commodity items like pet food and household staples checked off your list, brick and mortar shopping remains a social activity that is driven by the expectation of delight, discovery, and new experiences. In truth, very few consumers shop exclusively online or exclusively in-store. Shopping is now a fluid process, and most shoppers get their goods through a combination of online and traditional retailers. Retailers no longer dictate how customers shop. But they can appeal to what makes them tick and amp up the customer experience accordingly. Do that. Or wither away.
Anne-Marie Kovacs is a bricks to clicks retail veteran. She was the marketing executive for, at the time, startups YellowPages.com and LasVegas.com. She’s a lifelong entrepreneur and maestro project and event orchestrator. As a fanatical trend watcher and astute forecaster of consumer trends and behaviors, Anne-Marie developed Pop Box, a retail concept in Chicago, that strikes a chord with both brands and consumers.
