The reality of online vs offline retail
February 4, 2019
While there seems to be a growing belief that e-commerce is stifling offline sales, Ben Samuel of Nielsen Visual IQ has penned an article explaining why the situation is actually “far more complex.”
Samuel, who serves as VP for the EMEA region, reveals that while online sales are indeed rising rapidly, they still represent only 18 percent of retail sales, meaning “retailers still rely more heavily on in-store purchases than online sales.”
He goes on to explain that the current state of affairs is more complicated, with retailers “experiencing ups and downs across the board”, unrelated to whether or not they rely on mostly online or offline sales.
He goes on to assert that online and offline shopping shouldn’t be viewed as “either/or” as consumers “enjoy the convenience of both”, adding that there are benefits of both ways of shopping for both shoppers and retailers.
Even Amazon is beginning to comprehend the merits of a physical store location, he reveals, with the online retailer now “looking for brick-and-mortar space in the UK”, following a similar manoeuvre in the US.
“Ultimately,” writes Samuel, “success in retail isn’t achieved by following a prescribed mix of online and offline commerce. It’s attained by gaining a deep understanding of consumers and meeting their unique needs through relevant, omnichannel experiences that empower consumer choice. Marketers need to connect the dots to see what exactly is driving sales, and understand the influence of online and offline factors on conversions to succeed in such a highly competitive climate.”
He concludes that “it’s not a question of online versus offline, but rather how the two can work together to create the optimal customer experience.”
Categories : Around the Industry
