Before online marketing and e-commerce emerged, brick-and-mortars easily dominated the retail market. But as time passes and technology become unstoppable in its development, e-commerce sharply competes causing a decline to the progress and sales of brick-and-mortar stores.
In 2015, about 200 million people bought items in US online shops spending about $1,700 per person. This year, there’s about 62% online consumer increase compared to 2011. Over the next years in the US, it is forecasted that e-commerce sales will grow about 8.3 %/year.
On the other hand, brick-and-mortar stores, even if they still dominate the retail industry contributing at 90% of overall fashion sales, have been experiencing sales and shopper decline in the past years. Facing varied threats, several brick-and-mortar stores have disappeared.
Threats on Brick-and-Mortar Industry
The decline on brick-and-mortar store industry is caused by varied factors and threats. This includes the following:
- Regarding the data mentioned above, e-commerce solutions are a major competitor of physical stores. It let people order 24/7 and without moving. Digital shoppers continuously visit it because of the convenience it brings. In just one click, customers have able to choose an item and get it ordered.
- Major US retailers have growing market shares and most importantly, they offered lower prices. With the expanding number of online retail stores and with the existence of bigger competitors, small retail businesses like the majority of brick-and-mortar stores lose customers.
What are the solutions to consider?
The existence of competitors is just a normal thing in every types of business. That is why innovations and market strategies are important. For brick-and-mortar stores to actively compete and gains consumer confidence, note the following:
- Be excellent at advising the customers in store
Most of the time, customers ask for opinions whether a product is effective or not. In these moments, you should take advantage. Assisting them on what are suited or not suited for them is a great factor in winning your customers’ trust.
- Find unique and original products to sell
Most customers are looking for a unique product. In a world full of imitation, you should always find ways to be unique. Then, your customers will always remember your store. Begin from what’s common and stand out through the right choice of unique product.
- Gain loyalty from the consumers
Creating personal relationship with them greatly helps in initiating loyalty. To build loyalty, treating customers’ right and giving them a sharp assistance will enable them to feel convenient and comfortable. That way, they will perceive the store heartwarming.
As technology evolves, everything becomes digital and more and more people enjoy the ease it brings. That is why instead of visiting brick-and-mortar stores, customers continuously change their shopping or buying options. But you could always do something about it. Customers will always need advices from humans and they need to touch products. Double down on that to keep growing your client base.