Future of Retail: Multi-channel the key to success
SUCCESSFUL retailers will be those that harness the power of new media to interact with existing and attract new customers, experts believe.
With consumers empowered by using mobile technologies to compare prices – and to read other customers’ reviews online – retailers must embrace new channels of communication or suffer the consequences.
Hilary Ross, head of retail at law firm DWF,said: “In the past, online retailers were viewed as competitors to traditional ‘bricks and mortar’ retailers, but now, the explosive growth of multi-channel marketing and e-commerce has caused a significant shift in the dynamic of the retail industry.
“Having a multi-channel offering is no longer viewed simply as a marketing
strategy, but instead, as key to a retailer’s survival. In the last year it has become clear that those retailers which have embraced e-tail as an integral part of their offering are reaping the benefits.”
Approaching online in an integrated way – and making it work profitably for the business – ii obviously a major factor.
Rob Aitken, partner at accoutancy firm Baker Tilly in the North West said: “When some from the high street moved into multi-channel it was very much in silos but that’s changing and things are integrating more.
““That’s the key – not that they are relying on large warehouses to store stock and e and m-commerce to increase sales.”
Hilary Ross suggests that the sector could soon see alliances and joint venture agreements forming between retailers at out-of-town destinations so they can share the costs of such a service.
She said:“I can envisage link-ups in terms of warehousing and distribution, with retailers coming together for click and collect and using that space to help each other.
The explosion of social media and mobile commerce is the latest challenge to face retailers and early adopters are beginning to make significant gains, yet less than 10% of the top 100 retailers in the UK have mobile-optimised websites.
Rupert Eastell, head of retail at Baker Tilly, said: “M-commerce is not used so much for transacting yet but certainly for browsing and researching. It is happening and is here to stay.”
Mr Eastell thinks that m-commerce,(including tablets such as the iPad), will have a growing impact – increasing the ease with which consumers can search, compare and connect.
“Social media is really increasing in importance and changing the way that consumers relate to retailers and brands. Facebook, Twitter and others create public channels for people to air their views, positive and negative – worrying perhaps, but given that these comments are being made already better that the retailer knows about them!
“Turning this to a commercial advantage is the goal and the journey is only just beginning.”
