Is Brick and Mortar business model still relevant?

20171202UTC 10:59:04 am by Jemsheena E V 5 Comments

The revolution and growth of technology and the boom of online sales made consumers believe Brick-and-Mortar is on the verge of death. But the fact is far from this concept. The role of retail stores in this digital age is different, but still it has an important space in business sector. ‘Brick-and-Mortar‘ world is in the midst of evolution. In spite of simply remaining a physical store, they are figuring out ways to improve.

Though we chatter about the increase in e-commerce, its only 15% of retail sales we are talking about. In reality, all 85% of sales is occupied by brick-and –mortar stores. The reality is that people still like Brick-and-mortar shopping besides all the facilities offered by the online sites. Other than just getting the products in hands, shopping is a refreshing experience. This refreshment factor cannot be offered buy any of the online shops. Chatbots can never offer the satisfaction of interacting with a salesperson.

In many cases, stores don’t remain stores as it was earlier. The retail stores may get evolved into an optimized logistic machine, optimized showroom or a distribution point. Better shopping experience is the factor that attracts the customers to the stores. And so, stores must take all the effort to attract consumers.

Ways to Survive

Retailers may build technology embedded shopping system. The integration of physical and digital worlds will improve shoppers experience and can keep physical stores relevant for years. The extend and method in which stores access the technology determine the extent of survival of the stores.

Employing the available technology, they should remain an efficient model of the past. Implementation of Radio Frequency Identification techniques helps in keeping shelves stocked. Introduction of computer vision techniques may help in tracking customer density.

Another way of the future is Omni-channel where the experts at merchandising gradually retain their dominance as they offer more compelling online capabilities. Also, a fusion of the online shopping and in store shopping trends called “Click and Mortar” remains a good option. In this, shoppers can be provided with in-store experience, along with a chance to learn, observe and select products through online facilities.

References

  1. Brick and mortar stores are not yet dead

5 Replies to “Is Brick and Mortar business model still relevant?”

  1. I think its also depends upon the economic conditions of the countries, developed and developing countries have major role in it

    Below point is valuable, even if we prefer digital world still the feeling of entering a real shop is beyond words

    “The reality is that people still like Brick-and-mortar shopping besides all the facilities offered by the online sites. Other than just getting the products in hands, shopping is a refreshing experience. This refreshment factor cannot be offered buy any of the online shops. Chatbots can never offer the satisfaction of interacting with a salesperson.”

  2. Perhaps standard of living and the economic condition of the consumers may depend on the brick and mortar model business. But rather than that, I would say, it mostly dependent on the customer age group and the availability of free time for in store shopping. Millennials and Gen Z are accustomed to online business model but the aged group may still prefer in-store shopping.

    Apart from that, the brand value also is a key factor. For a branded product, instore is required just to show case their product range, but the actual business may be boosted through online. This is due to the customer would not have quality concern on online shopping.

  3. Way cool! Some very valid points! I appreciate you writing this
    article plus the rest of the website is also very good.

Leave a Reply

Your email address will not be published. Required fields are marked *

six + sixteen =