""A large part of the industry makes the mistake of simply turning physical retail into digital, but you have to completely rethink online."
- Christoph Kappes
Stationary retail is shrinking from year to year. E-commerce is steadily increasing its market share, although the statistics include the food market, whose online share is only one percent. The largest proportion of bankruptcies are sole proprietorships, but even chains like Strauss could not hold on to the shrinking stationary market. Experts warn that almost half of the stationary retail stores will disappear within 10 years. It is therefore entirely justified that many retailers are worried about their existence and are afraid of falling by the wayside in the face of digital change.
It may be true that many people consider strolling the city to be an enjoyable leisure activity and there will always be people visiting stores and shops. However, the triumphant advance of online trading is leading to falling sales in stationary retail and is depriving many shops of their livelihood. There are currently only about a quarter of Germans who buy online regularly. The trend, even if a little slower than expected, is rising and there is enough room for improvement. This means that we are still at the beginning of the change and the effects of the growing online trade that have been observed so far will not end anytime soon.
Closing your eyes to developments and hoping that old methods and patterns will be sufficient, have never worked in times of revolutions. It's horrifying how many shopkeepers are going down this exact path. The motivation to stick to tried and tested methods is usually the same: There is a fear of major changes, a fear of the unknown. Their own comfort zone gives them a sense of security, leaving them unsafe. They are like passengers on a large ship. It looks safe and powerful and has withstood for years. In contrast to the lifeboats, it gives a feeling of security. But this ship is sinking! Clinging to it and closing your eyes is far from sensible.
The stationary retail trade has significant advantages which, if used, can not only secure the existence but also result in considerable growth. Because the reverse trend, that pure online providers penetrate more and more into the shopping streets and centers, shows a clear advantage of the shops and stores.
Even if some experts assume that the inner cities will become deserted, I think this is unlikely. I consider the following scenario to be likely: the disappearance of some shops that do not adapt to the new circumstances will have a pull effect and pull others with it. Rents will fall and the city's main artery will become affordable for cheap stores. Since many large chains also sell very successful e-commerce shops in addition to their branches, these will remain. Some small traders will also stay as they follow the trend and add an online section to their business. The creation of a simple website with an order option or a Click & Collect concept as well as the presence on various portals such as E-Bay and Amazon are not sufficient. In addition, as already mentioned, more and more pure online retailers are penetrating the shopping streets. Not to be forgotten are new companies and start-ups that will use the emerging niches for themselves. All of this leads to competition that will raise rents again. Whether the discounters in the city centers will hold up depends on the development of the market and possible innovations. So the face of city centers and shopping centers will change.
However, we don't just want to name the developments, we also want to investigate the causes and provide an incentive for an online strategy. First, let's take a look at what causes online purchases:
Causes for stationary retail:
It is natural for buyer behavior to develop that combines the positive sides. The so-called ROPO effect (Research online, purchase offline) is an example of this. The wide range of products that are easily accessible online, as well as the reviews and experiences, are combined with the opportunity to examine or try on the goods. Efforts are also being made on the provider side to combine these, such as B. Amazon Wardrobe.
It can be assumed that a strategy that combines as many advantages as possible in stationary and virtual retail will promise the greatest success. We want to give you a little suggestion.
Online trading:
1. Examining or trying on the goods as offered by Amazon is associated with high costs for most and would not be profitable.
2. and 3. A possibility to walk through the store (similar to Google Street View) and click on products, communication via chat or telephony (integrating a service like Whatsapp is not time-consuming and very low-cost) with other shop visitors. Two friends can virtually walk through a shop, show each other products and communicate with one another. It should also be possible to activate the virtual location of the purchasing partner.
4. Advice from the seller could take place via chat or voice connection, in which the seller is enabled to show the customer various products.
Stationary trade:
1. Not feasible for obvious reasons.
2. and 3. At the products, several stations with trays, which only allow access to selected evaluation and product search engines for the products offered in the store. Even if this approach entails risk, as it is possible to find cheaper offers, small price differences will have significantly less influence on the customer's decision than when searching from home. The reasons for this are:
- The customer is already on-site and has the opportunity to own the product immediately.
- Offering this option arouses trust and thus goodwill on the part of the customer.
- Alternative products that are within reach are still tempting to buy.
4. Thanks to the online offer, more offers can also be accessed on-site (e.g. on the tablets), which can be ordered immediately if required and promptly delivered to the branch using the so-called Click & Collect model.
The connection of both sales channels through the possibility of navigating in the shop to the products in the shopping cart as well as the possibility of placing the products in the shop with a click in the virtual shopping cart is certainly useful in some cases. The automation and digitization of the usual processes such as warehouse management, accounting and recording of the order data of the various sales channels are important for the efficient use of staff. Training of the workforce would of course be necessary. Even if there is already training to become an e-commerce businessman, the instruction for the specific requirements of your business will not be as extensive. The effect of a corresponding design is not to be underestimated. A conversion or renovation can quickly create an innovative image.
Advertising for the online presence should not be neglected. In the store itself and also on other online and offline marketing channels, financial opportunities should be advertised. In the shop itself, the Internet address should be clearly visible. In particular, however, the staff in the service and at the checkout should, if necessary, motivate them to create an account with log-in information on a business card that is given to the customer.
I want to tell all retailers that change is always driven by its components. It is the individual members of society, especially retailers, that are driving this digital revolution. At such times, there are always opportunities for members in the rear to place themselves at the very front. You should not just let yourself be carried away, but actively help shape the future and become one of the pioneers of modern retail and thus ensure your success. I hereby offer you to go this path together and support your business in all areas from the online platform and training of staff to the new image and design. With my profit guarantee, every service is free of charge for you until the promised success is achieved. Let's become part of the digital revolution together.