from clicks to bricks: why physical stores matter today more than ever
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From Clicks to Bricks and why Physical Stores Matter More than Ever
August 6, 2015
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Simple steps for increasing the
Elena Martinez Retail Specialist
Elena-Martinez
More than 10 years experience in IT sector M.Sc. Telecommunication Engineering, M.Sc. Master in Information, Communication and Audiovisual Media Technolgies International Project Manager, Researcher In Openbravo since 2008
International Project Manager Retail Specialist
Presenter
Introduction Why pure online retailers are going physical Physical stores matter today more than ever Key Takeaways Q&A
Agenda and Goals
Trusted Vendor
5
World leader in the Professional Open Source Enterprise Software Space
Focused on helping midsize to large organizations to achieve superior competitiveness
Present on all continents
Pure channel organization with a distribution network of authorized Openbravo Partners
Offices in India, Mexico, France and Spain
Online-Only Retailers Going Physical
Founded in 2010, Warby Parker started as pure online retailer. They opened their first store in 2013.
"As awesome as the internet is, somebody can experience a brand in a physical setting in a way that no digital experience can replicate."
"In five years when people use the term "retail,' it'll mean both physical and e-commerce. The
-
even be used any
Source: Warby Parker
His mid-
Vision and Strategy
Which are the reasons for these pure online retailers to opening brick-and-mortar stores:
Improve customer experience, where digital
Reinforce the communi-cation message & connect with the customer
Offers gravitas to the brand and more exposure
Pop-up stores & show-rooming phenomenon
Increase customer loyalty and sales
Source: Warby Parker
Which are the drivers?
Birchbox is another pure play gone destination . Destination brand was
originally pioneered by Genius Bar of Apple
Source: Apple
Source: Birchbox
The challenge here is to transform the physical store as a place to feel, touch, listen and BUY and create seamless brand experiences
Challenge: Create Destination Brands
Focus on delivering multichannel retail experience and seamless shopping experience will be key for success:
Ability for customers to pick up and return online orders in store Offer consistent pricing and promotional offers across channels Ability to synchronize the data from online and offline stores
Flexibility options in the delivery Customers need to feel that they are valued and remembered, regardless of which channel
will respond to online inquiries via chat, email or phone
Source: Bonobos
Keys for Success
Retail IT landscape is constantly evolving and customers are increasingly demanding experimental experiences. Some of the benefits of having physical stores and related to the concept of providing a seamless cross-channel shopping are:
Create a more emotional connection by appealing to the five human senses, and possible with face-to-face service
Physical stores act as distributed fulfillment centers,
serve online orders from stores So retailers are embracing ship-from-store more than ever before service same day delivery at low cost
Offer click-and-collect Increase up-selling opportunities
Benefits of Physical Stores
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Speed
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Speed Convenience
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Speed Convenience Personalization
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The real challenge becomes to do more and faster
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Omnichannel is becoming a
more difficult goal
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Despite of the exponential
growth expected in e-commerce and m-commerce, physical stores will remain driving sales in the coming years (>95% of total sales) The role of the brick and
mortar store is evolving from being a destination of commerce to being a hub of omnichannel customer engagement
Openbravo Infography, 2014
Physical Stores Matter More than Ever
In this transformation Mobile is becoming the real driving force
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POS have Transitioned from a Store
Customers and Employees
Engagement
Business Agility
Store Operational Excellence
Visibility and Insight
That helps providing the promise of a truly seamless shopping experience
into a Complex Store Brain
Customers and Employees
Engagement
Business Agility
Store Operational Excellence
Visibility and Insight
Customers and Employees Engagement
Data from and Image taken from Eric Feinberg post, Jan 20, 2015
Customers and Employees Engagement
Nearly 300% more retailers plan to deploy mobile POS in the next two years
Approximately 200% more retailers plan to use geolocation within three years
350% more retailers plan to support NFC payments by October 2015
Source: 2015 POS/CUSTOMER ENGAGEMENT BENCHMARKING SURVEY
Top Technologies Providing Maximum Impact in the Stores
Mobile POS
Named or anonymous transactions.
Customers creation and management at the POS.
Customer Management
26
Back
Assisted Sale
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Information to associates about applicable discounts and promotions.
Search by product characteristics.
Information about complementary products and best sellers. Back
Loyalty & Gift Cards
Customers and Employees
Engagement
Business Agility
Store Operational Excellence
Visibility and Insight
Stores Operational Excellence
Inventory Visibility
Pick-Up & Delivery Flexibility
Security and Fraud Control
32
Improve operational and fraud control with
Complete support to opening and closing store and terminals including control of cash differences. Back
Customers and Employees
Engagement
Business Agility
Store Operational Excellence
Visibility and Insight
Visibility & Insight
Embedded Retail Analytics
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Out-of-the-box pre-defined analytical reports.
Capacity to create new cubes and dashboards.
Embedded query widgets in your workspace.
Back
Customers and Employees
Engagement
Business Agility
Store Operational Excellence
Visibility and Insight
Business Agility
Failure to anticipate and respond to changing consumer preferences in a timely manner could result in a decline in our sales. Source: BEST BUY FISCAL YEAR END FEB-1 2014, FORM 10-K (Factor Risks section)
We may not be successful in expanding our business, opening new retail stores or extending our existing store leases. Source: URBAN OUTFITTERS FISCAL YEAR END JAN-21 2014 FORM 10-K (Factor Risks section)
If we cannot successfully implement our retail store expansion strategy, our growth and profitability would be adversely impacted. Source: -28 2013 FORM 10-K (Factor Risks section)
Business Agility
A legacy system is any system that is not sufficiently flexible to meet changing business needs
Business Agility
Easy to Deploy
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Easy to Maintain and Adapt
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Search for new modules in the central repository or your file system and check the installation history.
Install, uninstall and disable modules, scan for updates and check module information.
Back
Easy to Learn and Use
40
Back
The Future
Next steps
Single Commerce Platform
More Speed More Convenience More Personalization
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Closing the Loop
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