A recently released Retail Week’s digital guide revealed that retailers are not fulfilling high consumer expectations due to a lack of flexibility. The core gap between retailer capability and consumer expectation is the flexibility to adjust delivery requirements once orders are placed.
The research compared the results of a comprehensive study of consumers that Sorted conducted against a Retail Week survey of over 45 retail leaders. The researchers sought to establish the delivery principles the industry should strive to accomplish in the future.
More than 65% of all consumers interviewed said they want flexible options. Out of the numerous eCommerce retailers available today, only 4% allow customers to adjust their delivery requirements at any moment after placing an order. Approximately 18% of retailers provide customers with no flexibility in their delivery needs after placing an order.
Proposition Vs. Expectation
Today, shoppers prefer agile delivery choices because they know uncertainties may occur, making them unavailable at their delivery point when their orders arrive. Establishing the rift between consumer expectations and the service retailers provide, the above-mentioned digital guide emphasizes core areas that retailers should improve while showcasing industry best practices from global retailers such as The Foschini Group. Read the entire report here.
Why Retailer Flexibility is Crucial for Growth
As an entrepreneur, increasing your flexibility levels could be what you need to thrive in a competitive market. Read on to understand the meaning of flexible retail.
· Operating on the High Street
There seems to be a decline in the High Street. However, there are still numerous growth opportunities for retailers who understand their product approach and have a well-structured customer base. An example of a retailer using the brick-and-mortar concept to thrive in the eCommerce world would be Joe Browns.
The fashionwear firm developed its brand on a broadening eCommerce presence and mail order. They later established a flagship store in 2017 in Sheffield’s Meadowhall. Online sales in the cities and towns near Meadowhall have since increased in the last year.
Today, the retailer plans to launch more stores. Critical lesson retailers can learn from Joe Brown is that having a physical store has developed a solid touchpoint allowing customers to evaluate its products.
· Linking Clicks and Bricks
A significant percentage of retailers are searching through their store network to boost online sales by availing their stock across different channels. Today, many retailers do so through click and collect, a concept that more than 70% of online consumers use. However, ship-from-store efficiency can complete their services by availing store stock online.
Beaverbrooks is an excellent example of lucrative offline/online integration. Recently, the jewelry retailer integrated new click-and-collect and ship-from-store solutions to convey a single view of stock in its more than 65 UK stores. These approaches can come in handy in fulfilling in-store and eCommerce orders from different locations to provide a more impressive and efficient customer experience.
Based on Beaverbrook’s concept, adopting systems that allow greater adaptability and agility will enable retailers to focus on customer experience by allowing them the flexibility to purchase, return, and deliver anywhere.
· Going-to-Market
When retailers want to transform their business model in preparation for growth, their choice will go beyond eCommerce versus bricks-and-mortar. Many retailers today are seeking different methods to benefit from online shopping trends and increase their brand visibility in more digital touchpoints than before.
While direct eCommerce websites are boosting new sales opportunities, retailers also widen their presence by adopting marketplaces. For example, Kingstown Associates, a lifestyle brand, has earned an additional £500,000 in its first year of launching on Amazon and eBay.
There are numerous emerging marketplaces experiencing exponential growth. The latest statistics reveal that Jet.com earned 3.6 million new members in the last year, while Flipkart has experienced a more than 70% increase in user rates.
On the other hand, Rakuten has tripled its customer base and today boasts more than 106 million online shoppers. Further, brands are adopting the marketplace model and implementing it in a collaborative e-text approach. They also establish a digital presence on their fellow retailer’s websites, just as they would run store deals.
An example, in this case, would be the evolving inventory of brands available via Next’s website. Having displayed sportswear and fashion brands such as Adidas, Lipsy, and Boden for years, Next included to its product line-up more than 100 homeware brands in September 2018.
Finally
The retail industry has been struggling over the past few years. Still, experts opine that disruption is a two-sided coin that allows brands to be different. While some may be struggling, others will grab an opportunity to exercise their creativity and stay ahead of their competitors. For many retailers, creativity comes by leveraging flexibility to grow their businesses. One thing every retail growth strategy requires is agile software solutions to facilitate business development. Many retailers are struggling due to the limitations of their existing systems. Choosing the proper infrastructure goes a long way in improving customer experience and boosting revenue.