What next for retail? Stores are shutting down, brands are digitalising and consumers are getting savvier. Whether it be niche practices or established brands, everyone is feeling the effect. Physical retail is losing its market share to the digital world. Digital is more accessible, it is more convenient and it is often cheaper.
Looking to the future, traditional retailers will need to think about how they are going to survive in these changing times. Whilst some suggest this marks the end of traditional retail, it is not. Traditional retail is not disappearing, it is experiencing a shift. Here I discuss how online retail is affecting traditional retail and what this means.
Soon, “digital brands” won’t be referred to as digital brands anymore. They will simply be referred to as “brands”. All firms will be digital, it will not be unique, and it will be the norm. A brand with a digital presence and no physical one might ask themselves if they should include physical space as part of their business model. Would it be worth it? And more so, would they really want to enter a failing sector? The answer will vary for every brand. For many brands, physical space will come as a burden more than anything else. For those considering it, they need a good reason.
The most obvious reason to introduce physical space is “brand exposure”. And as the digital world is becoming more saturated, having a physical presence is another avenue for brand marketing. This means that opening a physical space should serve to complement the online presence. Whether as a form of advertisement, a tool to increase brand awareness, a way to introduce new products, or to try new concepts out. If applied correctly, this can have a positive impact on a brand and its exposure.
In every risk lies opportunity. The risk is retail, entering the market is the opportunity. For the smart brands out there, will they be able to spot a gap in the market that the market has not yet spotted. How are they going to differentiate themselves, have a physical presence, and make it align with their overall business strategy.
That is for the brands to figure out.