Ecommerce: Why Everyone is Telling Retailers it’s the Way to Go and What you Should Know

If you browse the Internet for the recent history of retail business (we say recent because trade has existed since the beginning of mankind), you will find an overall scenario that, put simply, goes something like this: 

- Before the 1800s, people went to what was called a “General Store” which you would find in most towns and neighborhoods. The store keepers were known for referencing clients by their names, educating their clients and offering them a diversity of products. 

- The industrial revolution brought forth major developments in manufacturing, which led to the creation of more affordable items and subsequently to the opening of department stores, which were mostly found in metropolitan areas. The opening of the first department store was credited to Parisian retailer Aristede Bouciaut (1810-1870) who created Le Bon Marché. 

- Like what is often referenced today as the “consumer journey”, department stores even back then were not simply selling products, they were doing product demos, creating lavish and dreamy windows, launching entertainment events, etc. Basically, they were creating content (long before the Internet) and experiences. 

- The 1900s saw a rapid rise of department stores across major cities, which was later met with an even more rapid decline in the 1950s and 1960s (in the United States). 

- In the 1970s, discount department stores emerged along with shopping centers and large malls. Customer loyalty, once the cornerstone of retail shopping, starting becoming obsolete. 

- The “Big Box” stores (think Walmart, Target, etc.) ensued and embarked shoppers on a journey of convenience and yes, no frills!  

- In parallel, there was some nostalgia related to the ‘mom & pop shops’ of the earlier days (so clearly referencing the ‘good old times’ is a generational thing, but that’s another article on its own) and to all the personalization that came with them. 

What is the moral of this quick walk down history lane? 

In a few words, for today’s retailers, it is this: Don’t dismiss the learnings that have been gathered from brick and mortar retail! The retail business has been in constant evolution and isn’t likely to stop developing anytime soon. Ecommerce is not the end all of retail business. 

What is the MAIN lesson? For us, it is the following: There isn’t ONE way to go about retail business. Convenience has become key in our fast-paced world, but some customers’ need for a more niche and personalized offering is not likely to become a thing of the past anytime soon. Quite the opposite actually; brick & mortar retail still far outweighs online retail in terms of market share, until further notice. 

And so, yes embarking on a smart Ecommerce strategy is probably a key for most retailers who want to join the digitally native world, but let’s not forget the importance of multi-channel strategies. Shoppers (i.e. real people living in the real world and not bots) are not one-dimensional and neither should be your retail strategy. 

What about BIG brick & mortar retailers who either filed for bankruptcy or are seeing their sales figures take a deep dive? Think of cautionary tales like Sears, Toys R Us or more recently, Victoria’s Secret. The problem is not as simply put as Brick & Mortal VS Ecommerce, that’s part of the problem. The problem seems to be more along the lines of these brands’ failure to keep up with consumer behavior and remain relevant. This was detected in many ways: Customer service, product mix, pricing, playing an educational role vis-à-vis the super well-informed consumer of the Internet age, etc. 

Our advice to retail businesses of today: Be ready to be on an ongoing learning curve, that is the surest way of safekeeping your place in the retail game! What does this mean on the ground: 

1. Just because you have DIY tools to create an e-commerce site doesn’t mean you should forego strategy, both on a brand and on a communications level. Arm yourself with a brand & communications kit that can bring your content and added values to life!  

2. Though some areas of brick & mortar seem to be on their way to extinction, others are arising such as Pop Up shops, which are enabling the personalized approach while removing place limitations. 

3. We reference this a lot in our blog because it is so true: “Build it and they will come” seldom (if ever) works. So yes, communications is key, whether it’s in creating valuable and relatable content or in deploying this content in a well-studied multi-channel approach. 

4. Don’t skimp on your ad budget! Organic reach is great if you can ensure it for your brand. However, it is mostly reserved for big brands who have been relentlessly communicating their ‘raison d’être’ for years if not decades (and even they are still spending) or for influencers who have launched their own brands. Until you reach such fame or recognition, you have to invest both time & money. 

5. And finally, there is not ONE way to do things and the beauty of having digital channels is the ability to do a lot of testing. So use this ability to your advantage! Don’t let your ego make decisions for you, let the numbers and results speak for themselves. 

So, yes get onboard the Ecommerce track if it makes sense for your retail business. Just remember, it’s not a unilateral road. The branding & communications components are still a key ingredient in terms of resonating with the very savvy and informed consumer of today. 

Wanna chat about your retail business and how you should steer it? Get in touch and let’s talk!