The deliberation between bricks versus clicks, online versus on-site – call it what you will – continues ad nauseam. I suspect the dilemma is fuelled by angst and carpetbaggers. Am I a cynic? Undoubtedly! Countless retailers flounder because of a misdirected focus outside of their area of expertise and a core business that made them successful. Instead, they prefer to back the gamut of punters who flaunt the magnitude of online sales while warning of damnation should they not board
the gravy train as it heads toward some perceived nirvana.
Let me offer an alternative to the incessant blah blah. Online purchasing is not retail. It is a separate industry with its own unique intricacies and challenges. As certain as shopping is therapy, the bubble will burst again and again as it pursues to establish a niche.
Retail thrives on via sight, hearing, taste, smell, touch and a sixth sense – the workforce. If these senses are not woven with intricate cunning, retailers suffer the backlash where it hurts most – the back pocket.
Online is having an unconvincing 15 minutes in the spotlight, and unless it finds ways of stimulating the senses, it cannot hope – and dare I say will not – replace traditional retail concepts.
Further confirmation of this are the commonplace financials that report negligible growth yet boast double-digit growth in online sales. These are blatant red herrings to hide issues of under performance and poor leadership.
What point is there in creating a cannibalistic alternative for your customer to not frequent your physical stores? Is there a strategy in place to counteract lost income from the mercurial behaviours of impulse and word-of-mouth? Are people buying more online or are more people browsing more online?
The hook is in product and experience. Convenience is ambiguous scaremongering by the same individuals looking for a slice of the pie, rather than contributing to the bottom line.
A fundamental absurdity is the Lemming-like propensity toward omnichannel retail – a strange delusion that an organisation can be everything to everybody without compromising their fruitful archetype.
This omni-postulation is fanned by the harangue of self-appointed mentors whose very existence relies on ambiguity and fanciful horizons. The inconsequential accolades of those with a vested interest and dependents who tell you what you want to hear.
Social media
The divide between corporate and the masses on social media continues to widen – not for lack of commercial effort, but that of agenda. Social media is the communal playground of the people – a symposium of interaction where almost anything is possible. Where the population can communicate, investigate, corroborate and bond with like-minded folk. Where cultural and social inhibitions can be suspended, where creativity and thinking outside the box is glorified without abatement.
Corporate, on the other hand, always appear to be playing catch-up with social media. Interactions are cumbersome, dated and awkward – transparent endeavours to woo prospective customers to part with money or personal information.
If business hopes to partake in the social media spectacle without looking like Shrek emerging out of his beloved swamp to attempt to engage with the town folk, then it needs to engage with those who understand the intricacies of this diverse media. By doing so, business will capture the ever-fleeting attention of a fickle internet populace.
For retailers, the difference is in the detail, staying focused and keeping it simple; virtues often attained only by the masters of their craft.
For suppliers the time is coming when they will have to decide where their product is best served.
For pureplay online retailers, it is imperative to provide a meaningful service rather than a site driven by price.
Customer voice equals purchase. Employee voice equals profit. Embrace technology without compromising your core values.
Dave Farrell is retailer with three decades experience on three continents. He can be reached at alliance@vodafone.co.nz.