FIELDREPORT
As the big retail chains develop their omni-channel platforms, does this leave room for independents?
Top to Toe’s Michael Bloom looks into how national retailers are continuing to cope with the changing online shopping landscape. Is the approach taken by multiples really working, or is there is room for independents to do it better?
T
his year the news has been awash with articles about big multiples launching initiatives and restructuring to deal with consumers growing appetite for online shopping. Whilst most seem to have a
clear idea about their online growth strategies, the biggest recurring problem appears to be how they offer a complete user experience. Could this be an opportunity for independent retailers to provide a service multiples can’t? Can Indies use omni-channel retail to help grow their businesses? We examine the situation to see how retailers are planning for the changes ahead.
Inside Out or Outside In? As shopping habits evolve, consumers rarely rely on just one source of
information when making a purchasing decision; they might choose to shop in-store, or they might shop via a desktop, laptop, smart phone, or smart TV. They might learn of a new product in an email or through a social media post, visit the website on their laptop, or talk with some friends about their experiences with that product. Retailers can engage with these needs by marketing through these
multi-channels in an attempt to present a consistent message and provide a seamless experience. However this can be a complicated task and getting it right can be difficult. One of the challenges being faced is how to ensure that the experience is as seamless as possible and that the various channels don’t end up competing with each other.
According to a study by Nielson,
consumer confidence rose for its fiſth successive quarter this year to reach its highest level since 2006
16 SGBGOLF Stacy Schwartz, a digital marketing consultant and professor at Rutgers
Business School says: "Companies that focus on maximising the performance of each channel-physical, phone, web or mobile-have a multichannel strategy. They are likely to structure their organisation into ‘swim lanes' focused on each channel, each with their own reporting structure and revenue goals." Whilst this strategy has proved successful it can also sometimes cause friction and a loss of focus. Omni- channel retail puts the customer at the centre of the experience-
it acknowledges that mobile and social have enabled customers to not only quickly switch between channels, but actually use channels simultaneously. For example, they can check out product reviews on their mobile phone while evaluating a product on a physical retail store shelf. So rather than ‘swim lanes’- think spiders web. Experts argue that there is a distinct difference to be made- the multi-
channel approach is driven by the retailer or brand, whereas omni-channel has the customer’s needs at the centre of business strategy. So if convenience and certainty are drivers for consumers, how can e-
tailers and retailers meet their expectations and stay profitable? Some brands that have built a large and loyal customer base over the years appear to be addressing this by turning things on their head.
Spiralling Costs Big players like John Lewis recently announced plans to charge
customers for in-store delivery on items below a certain amount. This is significant, as online sales currently account for a quarter of all group sales at John Lewis. Their claims that the current model of free delivery or collection is ‘unsustainable’ due to the cost of the technology and cannot be taken lightly, seems to have resulted in this bold move. However this
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