Our Thoughts > Leverage the Best of O2O Retailing to Win Customers
Leverage the Best of O2O Retailing to Win Customers
Deliver the Omni-channel, consistent shopping experience
With the smartphone penetration rate rising, the customer shopping behavior in retail market has changed dramatically and impacted the traditional business model. According to a survey on online retail market in UK, mobile commerce has increased 254% between 2010 and 2011, and risen by a further 300% between 2011 and 2012. 69% of tablet owners make a purchase on their devices every month. The trend happens in emerging markets right now. Consumers have gradually adopted the new Omni-Channel shopping approaches, such as ordering from online shopping websites or App portals.
The changes of buying behaviors affect the brick-n-mortar store business a lot. Physical location is no longer the most important factor nowadays. Below are several scenarios happening in reality:
On/off line integration:
Retail chains would use digital channels as a competitive advantage to push potential buyers purchasing or steal customers from competitors. Traditionally, people used to cut off coupons from newspapers or magazines for discount favors; Now, they can visit any store recommended by a promoted e-coupon pushed to their smartphones. This leads online consumers to shop in store (offline) dramatically.
Many retailers or restaurants in Asian countries have caught up with this OmniChannel trend by joining local well-known popular LBS (Location-Based Service) App platforms, to attract new potential customers to their store in urban areas with more foot traffic. The younger generation is proficient at using Apps to find out great deals nearby on a daily basis. They even share feedbacks or likes on social media, which their friends would receive referrals in the meantime.
E-commerce business also benefits from advanced logistics services to make delivery much more secure and faster than before. In some big cities,online retailers even promise to get your purchase into your hands within six hours, which also severely challenges the franchise with only physical store network.
How to continue to connect with customers should be taken into account when developing a unified retail strategy. It is crucial to embrace new technology to satisfy your customers consistently, to ensure the business thrive in such a competitive market now.