Nestore's blog

Although physical stores remain the primary mode of access to consumer goods, the increase in online purchases is a lasting trend.

Representing 80% of retail sales , local commerce is going through difficult times and is suffering from the popularity of e-commerce. Physical stores must therefore urgently evolve by taking into account new digital consumption methods.

‍Indeed , brands are facing a new generation born with e-commerce. Buying online? It's a natural reflex for them.
But by offering an optimal customer experience , e-commerce players succeed in attracting and retaining the loyalty of these new consumers.

The hyper and multi-connected consumer is becoming even more informed, solicited and demanding. He wants the best prices but also quality. He does not want to wait and wants the product to be immediately available in stock and/or delivered as soon as possible . He wants to touch, see and test the product . He wants personalized advice. He wants the store to adapt to his needs regardless of the time or place. No single channel can meet all of his requirements. The shopper is becoming omnichannel.

@photographer Antoine Geiger depicts passers-by literally sucked into their smartphones

Is physical commerce in danger in the face of e-commerce? In my opinion, it is an opportunity!

Les acteurs du retail se doivent de trouver des solutions pour répondre à ces nouveaux comportements, satisfaire le client et faire vivre une expérience client enrichie et mémorable.

Increasing online visibility can be an effective solution ! Indeed, as journaldunet.com explains, around 70% of users use their mobile devices to search for information about a product before purchasing it. This is why creating a smartphone-friendly website is super important!
The smartphone therefore makes it possible to erase the boundary between online commerce and local commerce, but for this to happen, the retailer must manage to place it at the heart of their sales strategy.

‍‍According to the 2016 Ifop survey, more than one in two French people (51%) would find it interesting to receive promotional offers in real time on their smartphone , while walking through the aisles of a store (67% of those under 35). This effectiveness is explained by the fact that the message is received on a smartphone, a tool that is as intimate as it is essential in everyday life , including for payment.

Between ease of payment, geolocation, augmented reality and source of information, many points must be taken into account.

The retailer must therefore adopt a cross-channel or omnichannel strategy and allow the consumer to juggle between store and smartphone by offering them, for example, the option of buying or reserving online and picking up in store, having the store deliver to their home, or even being able to access their digital basket on site to add items and finalize the purchase online later.

‍From entering the store to purchasing , consumer behavior is analyzed through their smartphone in order to list different types of behavior in store. The goal is to give retailers all the tools to capitalize on this data in order to manage their advertising strategy. Sellers will therefore have access to their purchase history, tastes, expectations and much more.

This union of the online and offline channel is progressing, even if there is still much to do, since the latest studies show that the degree of omnichannel is less than 40% in the retail sector.

To revive physical commerce, we need to break the codes of traditional commerce and, above all, create the “wow” effect!

Retailers have a role to play with their customers and must focus their efforts specifically on their product and service offerings.
Customers should not go to a store just to buy something, but to have a unique experience that changes their daily routine. If they enjoy these experiences, the customer will be more likely to make a purchase.

To combat competition with e-commerce , many brands have integrated the concepts of digitalization of the store or "phygital". They consist of offering virtual fitting rooms, equipped tablets or interactive terminals , among other digital devices with the aim of a better customer experience.

The benefits of digitalizing the point of sale are numerous. (Digital-in-store is able to bring several benefits!)

Here are a few just for you!

• Boost in-store traffic,
• Optimize customer conversion,
•   Improve the profitability of your store,
• Strengthen the attractiveness of your brand,
• Modernize the brand image of your point of sale,
• Reduce waiting times in stores,
•   Streamline the customer journey,
• Stimulate cross-selling and up-selling,
• Have an undeniable competitive advantage

In the future, the phygitalization of the store will move towards greater personalization of customer relations.
This extreme customization will also be done with technological innovations . Products will adapt to each shopper. 3D printers, for example, will be able to personalize an item and make it unique.

We can often personalize products during workshops in stores, another trend at the moment!

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As you may have seen in my previous articles, new stores like Apple or Ikea(See the article) , organize many workshops. (Yoga classes, zero-waste cooking classes, creative and fun workshops, demonstrations, photo/video classes, etc.)

The goal of brands? To bring customers together in the same place, around the same experience and create a link between the customer and the brand.

The problem for e-commerce brands without physical stores: bringing your brand to life through your website and social networks.
It is true that he is making himself known, but it is not enough! (he lacks customer experience!)

The rise of pop-up stores and showrooms are two concepts that are increasingly being exploited for one simple reason: they are not places designed to optimize sales, but the customer experience.

Pop-up stores are therefore a good way to promote your e-commerce brand in a physical store , a way to attract online buyers , to show the brand's universe in real life and above all to create a real connection with consumers (in the same way as workshops)!

Pop-up stores are becoming more and more numerous! Whether in a boutique dedicated to the brand or several brands (concept store), in other brands like Ikea which has a space dedicated to the exhibition of collaborations with designers or even in shopping centers or large flagships which are inspired by them like Zara !

Physical commerce is not dead and still has many surprises in store for us..! (To be continued)