There is always question these days in the air, Will the physical store business continue to exist when the Ecommerce industry is growing at double digit growth world over, (at 51% per annum in india),. Are we going to see another disruption in retailing ?
Well,you have already started seeing few signs of disruptions. But over a period of time it is to be expected that the physical stores and Ecommerce is going to co-exist and will be complementing each other in a big way. This point is getting reconfirmed, when we see one of the Ecommerce giant’s move on opening physical stores for giving an omni channel retail solution.
Two pronged strategy - E-Market place & Own Ecommerce
Its also been observed that, larger brands , who were comfortable with selling their products on a general marketplace like amazon, ebay, flipkart etc., are now more focusing on building their own exclusive Ecommerce store. It gives a clear indication that, retailers are trying to get more insight in to their actual customers directly.
Big brands have already started chalking down their digital media plan not only to increase the business from Ecommerce business, but also to have a direct toch base with the customers who are getting more and more tech savy. This will help them to segment and target with a personalised touch.
IDC research predicts that Almost one third (30 percent) of major retailers will adopt an omni-channel digital B2B2C Commerce Platform by 2018, improving customer experience, process efficiency, and inventory management.
The way in which retailing is being done is going to see a drastic change. Retailing is going to be more customer focused rather than just business focused. Its becoming imperative for each retailer, irrespective of small or large, to have a clear view on how they are going to treat their customers. Because, the era has gone in retail, where the shop owner was dictating the terms. There is no more a private product, all the products are in public domain and the information the customer gathers on each products is enormous.
In this era, retailers need to accept the challenge and should be ready to change their mindset to adopt technology in a large way. This can be the only way to stay in the business, else, its going to tough to complete next few years.
Profit margin might get affected, but need to find new ways to fill this gap with value addition. Example, new type of physical store has emerged where the whole shopping is done by one self. No security to open the doors, no sales men, no cahier.. and list goes. You do it all yourself and get out of the store. Retailers will be compelled to Adapt technology which will help them to focus on profitable pie of their business and tweak their business strategies accordingly.
So keep your fingers crossed and see the retail space in a futuristic way.
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