Omnichannel retailing is a fully integrated approach, which helps to improve the firm's overall performance
Consumers are becoming more digital post-covid-19 in the way they work, communicate and shop. People are mostly operating from home and moving out only to buy essentials to avoid the risk of getting infected in crowded places. There is a paradigm shift in consumer behavior after 2019 as they prefer shopping online through e-commerce portals. Several businesses are at risk of closing permanently due to the threat imposed by the pandemic.
Travel firms, airlines, and retail firms are the most affected sectors. An ideally administered response by retailers is essential to ride the waves. To outperform less dexterous competitors, retailers need to build a more digital business model for the future. The firms need to be more flexible with everyday reality. To capture the potential demand, the focus will have to be extended from a brick-and-mortar store to e-commerce portals and various other business models.
Across online and offline channels, omnichannel retailing is a fully integrated approach. However, to increase online sales, it is crucial to have a brick-and-mortar setup for every business to provide customers a tactile experience of the product. For any retail firm, taking the business online has many good reasons—one of these being building company reputation. Not having an online presence in today's market scenario might take your prospects to your competitor's portal. Moreover, having an online presence either through your website or some other e-commerce portal or social media page like Instagram can make your clients place orders with you day and night, thereby increasing your sales volume. However, it is crucial for online sales to have a physical store, as it serves as an experiential showroom for your clients.
With a traditional physical setup, they can look at a product, experience its touch and feel, and can be sure of buying the product. It will be a fulfillment center for online orders contributing strongly to retailer's overall sales. The more channels shoppers use, the more likely they are to make transactions, and irrespective of age, customers usually prefer store buying.
The omnichannel view of retailing business helps improve the firm's overall performance, allowing each mode of business, be it online or offline, to hold credit in making its contribution for the total sales. Retailers see the potential in traditional brick and mortar setups of businesses and are rapidly expanding their footprints. The future of retailing resides in the traditional channel of physical outlets.
Having physical stores and online channels to communicate your product and service offerings is the best combination retailers can think about. E-commerce helps in lifting overall business sales by three to five times the built-out markets. The online business model helps to generate targeted traffic to your physical store.
With hectic office schedules, today's generation prefers to place an order at just the finger tap; however, the physical store reduces the risk by showcasing the product end to end.
As the society progresses ahead of the survival approach, the digital adoption momentum alongside brick and mortar setup is likely to carry forward and become permanent.
In the "new ordering world," as we envision it, retailers will embrace an omnichannel ecosystem by blending online and offline retailing channels to boost revenues.
The takeaway for retailers-
The nimble competitors who will continuously keep on bringing innovations in the customers' shopping experience by adopting omnichannel retailing will lead the markets. They will be followed by the survivors who will opt for selling their offerings either through online market platforms or their e-stores, and those having only the offline platform to sell will be the laggards in the race. Therefore, who will be the leader, survivor, or laggard is all about what you need to decide.
The author is CEO & MD, Seva Group
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