E-commerce will rapidly reshape the entire economic model of retail, what should the answer of retail be?
It seems inevitable that retailers will have to define a new model; one better suited to the fragmented market they find themselves in.
1. Use the store as media
Physical stores have the potential to become powerful media points from which retailers can articulate their brand story, excite consumers about products and then funnel their purchase to any number of channels, devices and distributors.
2. The Experience Is The Product
A new breed of experiential retailers will use their physical stores to perfect the consumer experience. They will define the ideal experiential journey, employ expert “product ambassadors” and technology to deliver something truly unique, remarkable and memorable.
3. A New Revenue Model
As for revenue; Retailers who can design and execute these sorts of outstanding customer experiences will likely charge an upfront fee or “card rate” to their product vendors based on the volume of positive exposure they bring to the products they represent in store.
4. Metrics Beyond Sales
By using technologies, store chains will be able to understand the profile and behaviour of the customers in their spaces and gather new insight into the level of engagement being created and eventually, even its causal impact on downstream purchases. In other words, the ability to understand what kind of customers came into the store, how many were repeat versus unique visitors, where they went within the store, what and with whom they engaged and ultimately what they bought while in the store and even after leaving the store.
Source: Businessoffashion.com – the future of retail is the end of wholesale