Omnichannel Retail – what the numbers say

Omnichannel Retail – what the numbers say

There’s big hype about omnichannel retail, but the proof of the pudding is in the eating. Here’s a quick look at how omnchannel is adding real business value for retailers in two prime geographies.

In the Americas

Rebecca Minkoff, a fashion brand, revealed its omnichannel plans a year ago. Large in-store digital displays to browse collections, a mobile app with integrated inventory, the option to save items in the cart to purchase later in case of doubt, personalized messages about offers on chosen, items—the brand has provided a seamless experience to shoppers. The initiative has paid off. Emily Culp, SVP of ecommerce and omnichannel, Rebecca Minkoff, says the brand witnessed a 6x – 7x jump in ready-to-wear sales after integrating its digital and physical stores.

What about the bigger picture? Does an increase in online sales mean reduced in-store sales? Not necessarily, as home goods retail company Williams-Sonoma will tell you. Williams-Sonoma is an established brand in the US, with product catalogues being the prime mode of marketing for it. After creating ecommerce websites, Willaims-Sonoma leveraged its strength and made the products displayed in catalogues available online. While the company’s catalogue and online sales grew by a substantial 12.1% to $2.37 billion, its in-store sales also grew by 2.4% to $2.33 billion

In the UK

Home goods retailer Argos recorded a whopping £1billion in sales through m-commerce earlier this year—this after an increase of 38% in sales through the mobile channel in the previous year alone. Argos went mobile three years ago, and has found that 90% of the transactions through the channel touch the physical store in some way, and a large number opt for the ‘check-and-reserve’ option through mobile, ultimately picking up their purchase in-store.

The penetration of mobile phones is very deep, and access to mobile internet is not far behind in other geographies too. The increasing use of multiple channels by consumers is inevitable – it’s hard to resist the ease and convenience of having a store at your fingertips. But simply developing the platform is not enough; all services must be tied together for a seamless experience. Retailers who do not adopt this path are sure to lose out on the potential waiting to be tapped, and another quicker player will benefit.

If you have any queries regarding omnichannel implementation or seek a technology partner to implement omnichannel for your business, write to sales@embitel.com

What is omnichannel retail?

Omnichannel is a multichannel approach to sales that seeks to provide the customer with a seamless shopping experience whether the customer is shopping online from a desktop or mobile device, by telephone or in a bricks and mortar store.

Source: searchcio.techtarget.com

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