There’s a lot of buzz in industry circles these days about the impact of “showrooming” on brick-and-mortar brands. Witness the excellent overview by Ann Zimmerman in the April 11 US edition of the Wall Street Journal, “Can Retailers Halt ‘Showrooming?’”
Ms. Zimmerman notes the anti-showrooming efforts of such retailers as Target and Walmart, and the challenge of meeting-and-beating pure play pricing and assortment breadth.
And, she also gets to the core of the issue: It’s not about competition between stores and pure play websites. It’s about competition between the websites of brick-and-mortar brands, and the websites of the pure plays.
We live in the era of Google, an era of web-based search, an era where just about any detail of just about anything can be found on the Internet. Studies of recent shopper behavior show a steady climb in the number of US shoppers who begin their purchase journey with online research. Nearly two-thirds of US adults do so regularly.
The Internet is the front door to all retail brands these days – not just the pure plays. It’s where shoppers are initially won or lost – and where store traffic is increasingly generated.
This means two things to brick-and-mortar brands:
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Tags: Ann Zimmerman, e-commerce, Jon Stine, mobile shopping, multi-channel retailing, omni-channel retailing, research online buy offline, retail technology, ROBO, showrooming, Smartphones, wall street journal
My colleague Bharat Popat and I just published a perspective on Cloud computing for retail that we think will help retail technologists cut through the cloud around Cloud.
Our hypothesis is that Cloud basically consists of custom combinations of four IT best practices:
- Network-centric enterprise and store ICT architectures.
- The acquisition of services – ranging from enterprise applications to infrastructure to complete business processes.
- The pursuit (and use) of new financial models.
All of which are in rapid adoption throughout developed world retailing (and enterprises in general.)
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Tags: Cisco IBSG, cloud, Cloud Computing, cloud for retail, digital commerce, Jon Stine, multi-channel retailing, omni-channel retailing, retail technology
A long-standing hypothesis around here is that we’ve entered a new age of internet-shaped shopper expectations.
The thinking is that, in this age of Google, Amazon, and ubiquitous connectivity, an increasing number of Western shoppers now expect the entire world to work like an iPad 3 hooked to a steroidal data pipe.
Where, with a flick of the finger, anything and everything can be found. In multiple choice. Where comparative price and product data is there for all to see. Where transparency is equated with authenticity, and authenticity with trust.
And where everything moves ahead at blink-of-an-eye speed.
Evidence of the latter was found this past week on the front page of the New York Times.
Steve Lohr (“For Impatient Web Users, an Eye Blink Is Just Too Long to Wait”) reported that Google researchers found that a delay of four hundred milliseconds or more between key stroke and computer response – that’s four-tenths of a second, literally the blink of an eye – will cause people to search less.
According to a computer scientist at Microsoft, a response time of 250 milliseconds is now the magic number “for a competitive advantage” on the web.
Truth be told, our impatient society will wait more than a few blinks for a big video file to download. But Google research shows that four of five online users will click away if a video stalls while loading.
In this day and age, it’s lack of speed that kills.
Worth remembering as one designs the next web experience.
Worth remembering as one designs the next store experience.
Ladies and gentlemen, start your engines.
p.s. I will be speaking at the Catch Em and Keep Em Webcast on Thursday March 8th, 2012 about our research released at NRF 2012 back January. We will talk about what in our research show how retailers can catch and keep the channel hopping consumers. You can register to watch the event here.
Tags: electronic commerce, future of retailing, future store, Jon Stine, multi-channel retailing, omni-channel, shopping experience
The conference call buzz of past weeks confirms that one of the retail tech topics du jour is the quest for a “mobility strategy.”
Requests from good retailers. Meetings with smart folks hard at work identifying use models and value-creation plays for both associates and consumers.
No question that it’s important.
But every retailer should be asking how important – especially consumer mobility. Especially in today’s world of cross-channel shopping.
Let’s look at the numbers.
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Tags: Catch ‘Em and Keep ‘Em, Cisco, cross-channel shopping, interactive shopping screens, Jon Stine, mobile shopping, mobility in retail, multi-channel retailing, retail, retailing, Smartphones, tablets in shopping
If you’re a retail technologist and you haven’t yet read the December 2011 issue of the Harvard Business Review, let me offer a friendly suggestion: Stop what you’re doing. Find a way to buy the issue. Sit down and absorb.
Three articles (one of them an interview with JC Penney’s Ron Johnson, he of Target and Apple Store fame). It’s all about how we need to be thinking about the physical environment of retailing. What it represents. Why it’s critically important today and tomorrow. And what retailers have to do to save the store, and in doing so, save the business.
The reality of today’s shopping behavior is that it’s cross-channel. Consumers bounce between the so-called touch points as they move through the shopping journey, from PC to mobile to store. And then maybe to the cash-wrap. Or back to the PC. Or maybe to the tablet while curled up on the sofa.
At any of these points, you can win a customer. At any point you can lose a customer. The data from numerous sources – including Cisco’s October 2011 survey of US and UK shoppers – makes clear that the store can play a huge role in online transactions, and that the PC and smartphone play a huge role in store transactions.
Bottom line for those who diss the store: it’s still where the vast majority of shopping is happening. And, if you starve your store experience, you’ll lose customers in droves – even among those who found you on the web. (Anyone listening in, Hoffman Estates?)
We at Cisco have been studying cross-channel shopping for the past two years, and late on Monday afternoon, January 16th, at the National Retail Federation Show in New York, we’ll release our latest findings on where they’re shopping and how they’re shopping. We’ll also share how shoppers responded to some of the latest immersive, interactive digital ideas to hit the store floor.
Looking forward to discussing all this with you.
Tags: cross-channel shopping, future of the store, mobile retailing, multi-channel retailing, National Retail Federation Convention, online retailing