Traditional retail vs online shopping/ecommerce

I have always been a sparing consumer. I always calculate value for my money before buying anything. I often look for a good deal or a sale before buying anything. Even while buying groceries I look for the competitive prices/discounts etc. or haggle with the vendor, to stretch my rupee further.

I never go to malls, retail outlets to shop items like electronics, entertainment media, books, dvds and even some of my apparael requirements. I shop them online. The reason being is that I can not only compare prices more easily and watch for sales but it also saves lots of time. Time to go out, confront with the city traffic and parking problem, search for stores/items, compare their offers/claims by visiting few more stores, stand in line to pay and then go home. There are many people like me who, now a days, preferring shopping online.

So if this trend goes on, will traditional retail brick and mortar stores will go to vanish entirely? My answer is a big No. Retail shops (including malls and small grocery stores) are not going to extict, though they may have to change themselves a little bit. People still look for quality, freshness, credibility, after sales service etc. So they prefer to buy them personally rather than shopping them online.

So, here are a few reasons I expect these retail categories will not be obsolete so soon and easily:

1. Window shopping experience – In India or elsewhere, shopping can be considered as one of the entertainment option. Specially ladies like to shop a lot (I know from personal experience :-)). You need money if you want to shop. Well, ask some retail guy and he will tell you that its not true. At least half of customers who walk in the door of a non-grocery retail store don’t actually buy anything. People just go to kill time, to have idea of prices/items, to hang out or simply enjoy air conditioned environment. Getting customers in the “buying mode” is one of the most difficult aspects of working in retail sales. So getting foot traffic is half the product sold.

2. Touch and feel experience – I may buy a mobile or vacuum cleaner online but it would be better if i can see it physically before ordering it. Virtual Reality overview of a product can’t replace seeing it in a showroom. This is the big reason for brick-and-mortar (B & M) or retail existence.

However brick-and-mortar (B & M) and online shopping can creaet nice option for customers. This relation can be termed as click and mortar (C & M). Many companies now a days opting for this approach. Like Dell computers, and Nokia also have many stores like this, they are opeing many showrooms to display their items but they dont sell throgh showroom. People examine the items at showrooma and ordering it online from showroom itself or from their home. It will save company a huge cost like staffing, supply chain, cash management etc.

3.After sales service/ feature info – In case of any problem with the purchased product like quality, non functioning or merely some operational info they want physical stores. Where they can interact/ask questions etc. It improves credibility of brand. It’s much more satisfying to deal with someone in person than to deal with than a customer service people over the phone.

That is why I doubt retail stores are on the way out anytime soon. They may have to adopt some changes in coming time considering the technology is becoming part of everyday life.

Looking forward to get your feedback on this.

You can reach me at supriya.work@gmail.com