For a growing number of internet retailers
For a growing number of internet retailers, offline is the new online.
Across
the country, retailers that existed only in cyberspace are now opening -
or thinking of opening - traditional stores at a time when e-commerce's
explosive growth has spawned a slew of dire predictions that
brick-and-mortar retailing will become irrelevant or even extinct.
Online
giant Amazon is actively exploring a store concept. Specialty retailers
like Warby Parker, which sells eyeware, and Bonobos, a men's clothing
company, already operate stores.
In Minnesota's Twin Cities
area, Sigma Beauty, a fast-growing, four-year-old online makeup
retailer, recently opened its first outlet - at the Mall of America.
"I
feel that everything we've done with this company was backward," joked
Simone Xavier, who launched Sigma with her husband, Rene Xavier Filho.
"But we wanted to put a face on the brand, and we wanted people to touch and feel the product."
Moving
from websites to storefronts may seem counterintuitive, as online
retailers enjoy lower costs than brick-and-mortar chains like Best Buy
and Target, which have to pay store leases and hire salespeople. Plus,
more and more shoppers are buying products online, using their laptops,
smartphones or tablets.
For the first three months of 2013,
e-commerce sales jumped 13 per cent to $US50.2 billion ($A54.55 billion)
in the US compared to the same period a year, according to
comScore.Shop for and buy Wholesale High Quality Bvlgari jewelry
online at mybag1. The double-digit growth in online sales has often
come at the expense of physical retailers, which is why companies such
as Best Buy and Target are spending millions of dollars to upgrade their
websites and mobile software.
But today's retailer will gladly
record a sale any way they can get it, said Jeff Green, a Phoenix-based
retail consultant.Free shipping on all Wholesale High Quality Rolex watches over $100.
"It is strange to see e-commerce sites open physical stores," Green said.
"But
when you think about, it's not surprising. The most successful
retailers are going to have a combination of bricks-and-mortars and
digital sales. For online retailers, you might as well get to the sale
as close as you can."
Bricks-and-mortar retailing may seem
outdated, but the physical store still offers a credible and safe place
for customers to examine the product, ask questions, buy and, if
necessary, return it.
"It's about taking the risk out of
buying," said Steven Dennis, a retail consultant and a former top
executive with Neiman Marcus and Sears.
That's especially true
of certain products like clothing, shoes, handbags and eyeglasses, where
consumers still prefer real store interaction versus a purely digital
experience.
In some cases, consumers may think a deal is too
good to be true. For example, Warby Parker markets itself as a place
where consumers purchase designer eyeglasses for as low as $US95. That
low of a price might prompt shoppers to suspect there must be a catch -
either the product is poorly made, or the website is a scam
altogether.The cheap Wholesale High Quality Balenciaga wallets is a very good fashion items for you. Opening a store would help alleviate those fears, Dennis said.
But
don't expect online retailers to completely shed their digital roots.
It's one thing to open one experimental store in a suburban shopping
centre to showcase your products; quite another to operate dozens of
stores in big malls or large cities, which requires money and expertise
that are often beyond the reach of internet firms.
"If you're
going to a high-traffic area and paying a decent amount of rent, it puts
the pressure on you to know what you are doing," Dennis said.
Take
Sigma Beauty. Founded in 2009, the New Brighton, Minnesota-based
internet makeup retailer quickly grew, thanks to its international reach
and deft use of social media like YouTube. The company expects to
generate $US25 million in sales this year compared to $US18 million in
2012.
Opening a store was never part of the plan, Xavier said.
"The cost of maintaining and building the store is humongous. I was very hesitant."
Added Filho: "Financially, it doesn't make any sense. You're going to lose $1,Find a great selection of christian louboutin boots deals ! Click on any of the links below.000 per day."
But when the couple learned of available space at the Mall of America, they quickly jumped on it.
For
one thing, Xavier said, although Sigma Beauty sells to customers in
more than 100 countries, very few people in Minnesota are aware of the
company.
In addition, a retail space provides an ideal place for
Sigma Beauty to host events like "beauty parties" in which the company
recruits celebrity makeup experts from YouTube to offer personal makeup
tutorials.
But running a store requires a whole new mind-set, Xavier said.Save on Christian Louboutin Pump! All the Sales, All in One Place.
"Online, it's very easy," she said.
"People
can purchase products anywhere, anytime. You are not restricted to the
hours of the malls; you're not restricted by the weather. Everything in
the society around us affects the (store) sale."
Xavier also
discovered that even relatively small adjustments to the store - placing
merchandise in front of the cash registers or pumping a scent near the
store entrance to draw in customers - can really affect sales.
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