Is the fight deadly?
Experts are convinced that in a situation where incomes and purchasing power continue to fall, and the consumer model has changed once and for all, retailers have entered into the "last battle" not so much with each other, but with all non-retail: from cinemas and entertainment parks to language courses and museums. Is it so?
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In the Management Company "Adamant" also tend to talk more about omnichannel and parallel development of offline and online retail in Russia. "For example, in hardware and electronics stores, in addition to traditional trade, order pick-up points placed on their territory have been added," says Alyona Marinicheva, Director of the Advertising and Marketing Department of the management company "Adamant". The same thing happens in clothing, footwear and accessories stores: customers have the opportunity to order goods online, and then come to try it on and buy it directly at the point of sale.
According to research conducted by McKenzie, 70% of sales in a real store depend on what customers see online. According to Bain, 91% of luxury purchases take place offline, while the online shopping segment in this sector is growing every year (for example, +25% last year). «And we should be ready to catch the customers of this segment, – convinced Alberto Camerlengo, CEO Furla. That's why we work on the same strategy for both physical stores and online sales. We constantly receive hundreds of messages, there are many opinion leaders in various fields, including millennials, who are becoming trendsetters today. Over the past two years, millennials have become the largest generation of the U.S. workforce, and they are likely to take the same position relative to the WW level. This is the fastest growing generation of customers in the market, which affects it the most. Millennials demonstrate a new attitude to employment, sales and marketing, their views challenge many traditional strategies and approaches. They have more purchasing power due to education and much more influence due to quantity. Millennials, more than any other generation, rely on each other's opinions and are happy to share their impressions with friends to help them make a decision. Instagram Facebook, Twitter, etc.), they have technology at their fingertips (smartphones) and a whole range of platforms on which they communicate (Facebook, Instagram, Twitter, etc.).
Social media in general has radically changed the way this generation thinks, shares impressions and expands the zone of influence on other people, according to Furla. "They know that their voice has power, they own it," explains Alberto Camerlengo. This is the main reason why companies should understand that it is necessary to respond very quickly and clearly to the requests of this generation. Brands are increasingly investing in digital platforms; thanks to new technologies, everything can be developed much faster. For example, an online store that has recently appeared on the territory of Russia gives us the opportunity to expand our services. So, the Click and collect function allows the client to choose not the delivery of the goods by courier, but the boutique from where he wants to pick it up. And in the near future Furla will focus on such services that will bring greater freedom to our customers.
Patrick Sjoberg, Executive Director of Shopping center management SRV in Russia, however, states: in Russia, a comprehensive transition from offline to online has not yet occurred. "Yes, online stores are developing, but their share of the general segment at the moment is not so great," Mr. strong reflectsSjoberg. – Russian buyers still need «real stores ». For example, the older generation still does not trust online shopping. In addition, e-commerce has a number of limitations: to pick up well-fitting clothes, you need to try them on, the goods may not meet expectations, you need to wait for delivery. It takes time.High-class service and unique experiences work more as an additional option for "hunting" for the client. This is not a decisive factor that affects the store's attendance, but a complementary one. After all, if the store's products are not interesting to the buyer, the service alone will not be able to keep him.
«Due to the desire «to feel with your hands » goods before purchasing, the influence of modern formats and online services may in the next 5–10 years get an additional 10% of expenses and transform the organization of the retail space, however, traditional retail will still be in demand», – considers Konstantin Budagyan.
Against this background Nilo Pacenza reports on a new trend: 3D visualizations are gradually becoming mainstream in the fashion and beauty industries, thanks to which consumers can understand how a particular product or makeup will look on them without fitting and in a playful way. "Such offline technologies are mostly used in Japan now, but this trend is also coming to Russia," says Mr. Pazenza. Many shopping centers began to organize interactive events, various presentation of brands represented in shopping centers, creating shows, exhibitions and performances taken from representatives of contemporary art. The most flexible and adaptable will survive. Given the trends towards customization, the decline in purchasing power and the change in consumption patterns, success will be achieved by those brands that will be ready to change together with their customers, introduce new technologies, improve their service, introduce additional services, thus creating comfortable shopping conditions for consumers, making them a bright and memorable event.;.
The company notes that it is more important than ever for retailers to clearly understand the target audience of their product and adjust promotion and communication based on the preferences of the target audience. "After all, people are not just looking for a deal. "Give money – get the goods." Today people are looking for new experiences," says Alberto Camerlengo. That is why the strength of the brand is becoming a key success factor today, and we continue to invest in creating a strong image to attract the attention of customers in the future. Today we need to think about how to be inclusive and exclusive at the same time in order to satisfy all requests. The only way to get around problems like Brexit, wars and commodity price fluctuations is to be creative in your work.
< span style="font-size: 12px;">Author: Ekaterina Reutskaya
