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Cannibalisation! Anti-competition! High street under siege! We look past such ‘catastrophising’ and reveal some far more down-to-earth truths about the power of multi-channel retailing.
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Top Three Multi-Channel Myths Busted!Cannibalisation! Anti-competition! High street under siege! We look past such ‘catastrophising’ and reveal some far more down-to-earth truths about the power of multi-channel retailing.
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The high street is in its death throes and soon our favourite stores will be boarded-up...
“Bricks-and-mortar stores are dead”
The Misconception
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There’s no doubt that the high street is facing serious challenges. According to Deloitte, 4 out of 10 shops will shut in the next five years. But the report says retailers need to evolve their thinking and strategies in the multi-channel environment
“Bricks-and-mortar stores are dead”
The Facts
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John Lewis has an incredibly successful online presence that draws customers into their high street stores:
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John Lewis has an incredibly successful online presence that draws customers into their high street stores:
Two-thirds of all their sales involve a customer interacting with both its stores and website and one-third of all online orders are now collected in-store.
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John Lewis has an incredibly successful online presence that draws customers into their high street stores:
Two-thirds of all their sales involve a customer interacting with both its stores and website and one-third of all online orders are now collected in-store.
In the year to January 26, John Lewis recorded a 44% rise in online sales, and a 2.6% increase in like-for-like store sales.
44%
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In a truly multi-channel world, the purpose of the store changes from ‘driving sales of the product in store’ to being a ‘brand and product showroom that drives revenues across all channels
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Why do consumers still like bricks and mortar stores?
Buy the product immediately
No extra costs such as postage and packaging
Hassle-free returns
Enjoyable experience
01
02
03
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Offering your customers alternative channels through which to buy your products could see overall sales being cannibalised as consumers simply shift from one channel to another.
The Misconception
“Online retailing means my company’s sales are being cannibalised!”
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Research by PwC shows that far from cannibalising sales, the opposite is true - it can actually encourage more spending by a consumer.
“Online retailing means my company’s sales are being cannibalised!”
The Facts
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Nearly one in five surveyed by PwC said that they spend over 25% more at their favoured retailer if it offers multi-channel sales options
25%
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Nearly one in five surveyed by PwC said that they spend over 25% more at their favoured retailer if it offers multi-channel sales options
In the US, 56% are spending more and in Russia, 49%
25%
56% 49%
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Nearly one in five surveyed by PwC said that they spend over 25% more at their favoured retailer if it offers multi-channel sales options
In the US, 56% are spending more and in Russia, 49%
That figure swells to a huge 68% in Brazil.
25%
68%
56% 49%
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Nearly one in five surveyed by PwC said that they spend over 25% more at their favoured retailer if it offers multi-channel sales options
In the US, 56% are spending more and in Russia, 49%
That figure swells to a huge 68% in Brazil.
Retailers should be using online and social channels to their advantage. Exclusive events and offers promoted through social channels are a great way to drive in-store footfall.
25%
68%
56% 49%
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Overseas consumers won’t be interested in buying from a foreign multi-channel operation, and prefer to shop from companies based in their own country.
The Misconception
“Foreign buyers will shun your products”
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According to the PwC 2012 Global multi-channel consumer survey, companies are enjoying huge success in foreign territories.
“Foreign buyers will shun your products”
The Facts
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Take China and Brazil - out of the top ten brands, those surveyed said that their favourite brands were:
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China
2. Apple Store
6. Nike5. Adidas
7. Carrefour
15%
10%
12%
9%
Take China and Brazil - out of the top ten brands, those surveyed said that their favourite brands were:
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China
4. Wall Mart5. Carrefour
Brazil
15% 15%
10%
12% 12%
9%
Take China and Brazil - out of the top ten brands, those surveyed said that their favourite brands were:
2. Apple Store
6. Nike5. Adidas
7. Carrefour
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Germany rated three foreign companies in its top 10 including C&A, Esprit and H&M.
China Brazil
15% 15%
10%
12% 12%
9%
Take China and Brazil - out of the top ten brands, those surveyed said that their favourite brands were:
4. Wall Mart5. Carrefour
2. Apple Store
6. Nike5. Adidas
7. Carrefour
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Germany rated three foreign companies in its top 10 including C&A, Esprit and H&M.
There are exceptions though - France didn’t feature any foreign brands in its top ten. Quelle surprise!
China Brazil
15% 15%
10%
12% 12%
9%
Take China and Brazil - out of the top ten brands, those surveyed said that their favourite brands were:
4. Wall Mart5. Carrefour
2. Apple Store
6. Nike5. Adidas
7. Carrefour
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Germany rated three foreign companies in its top 10 including C&A, Esprit and H&M.
There are exceptions though - France didn’t feature any foreign brands in its top ten. Quelle surprise!
According to an IMRG e-Retail survey, 72% of UK e-tailers ship goods outside of the UK.
72%
China Brazil
15% 15%
10%
12% 12%
9%
Take China and Brazil - out of the top ten brands, those surveyed said that their favourite brands were:
4. Wall Mart5. Carrefour
2. Apple Store
6. Nike5. Adidas
7. Carrefour
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Multi-Channel Leaders, We Salute You: What You Can Learn From John Lewis
As UK retailer John Lewis leads the way in multi-channel retail success, we look at the lessons others can learn from them.
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Multi-Channel Leaders,
We Salute You: What You Can Learn From
John Lewis
As UK retailer John Lewis leads the way in
multi-channel retail success, we look at the
lessons others can learn from them.
Learn how to maximise your multi-channel software and strategies by downloading our free eGuide
‘Multi-channel leaders, we salute you: what you can learn from John Lewis’.
Download Now!
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