E-commerce forces brick-and-mortar stores to innovate
But analysts say millenials still treasure the experience of going out to shop
By Erich Parpart
With e-commerce being fitted into their arsenals, retailers are now aiming to provide new experiences and greater convenience for shoppers. And while brick-and-mortar stores will continue to exist, they are no longer places exclusively for shopping, but also must function as showrooms and fitting rooms.
Many modern shoppers now pick what they want online, search for the best price, find a time slot, choose how they want to pay, and wait for the item to be delivered to their home. However, many consumers still prefer the experience of physical stores, which are developing new attractions to keep customers coming back.
“Today’s consumer no longer goes shopping, but is shopping, all the time and everywhere,” said Willy Kruh, global chair of consumer markets at KPMG International.
“Nevertheless, despite the rise of online shopping, e-commerce still makes up a relatively small percentage of total retail spending.”
According to a report by eMarketer, worldwide retail sales totalled US$22 trillion in 2016, of which only 8.6 per cent or US$1.9 trillion was retail e-commerce. By 2020, total retail sales are expected to reach US$27 trillion, with e-commerce accounting for 14.8 per cent or $4 trillion.
Among those adapting to the new reality is Central Group, Thailand’s largest operator of department stores and shopping malls. Its new “Store as a Theatre” concept combines innovation and technology to offer customers more fun while shopping at Central department stores.