Offline Stores: Better logistics, Consumer Service and Brand Relationships Help Brand Development

February 10, 2020

"New retail" is still essentially a retail business model. However, unlike traditional retail, new retail pursues "online + offline" and integrates into the Internet ecology, cloud computing, and big data business to rebuild the retail industry's " People, goods, field. Compared with the virtual Internet, retail store displays have the advantages of service and experience. This is exactly what e-commerce does not have. Strictly speaking, offline physical stores and e-commerce form a complementary relationship.

So, for offline physical stores, in addition to the advantages of multi-sensory consumer experience, what other advantages can it use to help the brand develop?

Why do offline physical stores have better logistics and consumer services?
Generally, online retailers use a physical store as a product display space and a storage and transportation center in the beginning stage to support online business and complete online orders. Because the existence of the entity also reduces the time and cost of transportation, which is beneficial to both consumers and merchants.

In November 2014, Amazon announced the opening of a physical store in downtown New York, a breakthrough for a 20-year-old online retail giant. Located in Herald Square, near the famous Macy's Department Store and the Empire State Building, this store is one of the most visited places in New York.

A brick-and-mortar store study found that brick-and-mortar stores that facilitate quick and easy pick up and returns can boost sales growth. Online transactions, remote returns, merchants can expect 77% of net sales; online sales of physical store returns will promote an additional 18% of sales, which is expected to lead to 95% of net sales.

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How can offline physical stores help businesses maintain strong and lasting brand relationships?
From an era of transaction-based retail to an era of relationship-based retail. American consumers are looking for something to buy, not only the product itself but also the desire to establish a harmonious and long-term relationship with the company's brand culture through transactions. This demand is not an easy task for online retailers, because their main interaction methods are through computer screens or smartphones. That's why online retailers are looking for physical stores as a way to attract customers and further build strong, trusted and lasting relationships.

Warby Parker is an online eyewear retailer that has successfully integrated offline physical stores into online stores in order to better maintain the complete customer experience. In this beautiful and stylish physical space, customers can freely try on a variety of glasses, can perform eye examinations, and can also take pictures of themselves wearing glasses. Warby Parker gives consumers a complete and interesting experience space, and at the same time gradually increases the long-term trust relationship with customers.

Faced with the impact of e-commerce, brick-and-mortar retail stores have their own countermeasures. For example, British malls are vigorously promoting entertainment and leisure projects in brick-and-mortar shopping malls. Although shopping online is very convenient, many people still like shopping. If the mall puts leisure and entertainment in place, it will certainly attract customers. It is based on this consideration that 15-20% of the new shopping malls in the UK will be vacated for the purpose of creating leisure and dining areas. Traditionally, the proportion of leisure and dining areas in British shopping malls only accounts for 5%.