Barely a few years when e-commerce was gaining increasing y-o-y traction, there were growing whispers that traditional brick-and-mortar (B&M) retail stores would soon struggle to survive. The pandemic-induced closure of retail stores and the sudden surge in online transactions added further momentum to the narrative that brick-and-mortar stores could be on their way out.

Two years after the pandemic outbreak, physical stores are back with a bang, even as online sales thrive. Today, industry analysts are touting the clicks-to-bricks model that combines online and offline shopping options.

Omnichannel Gains Popularity

Since both online and offline retailers realize the significance of an omnichannel approach, brick-and-mortar retailers are creating or already using websites to rope in customers who order online but then collect items in-store.

Partly, the online followed by offline behavior is driven by shoppers' urge to compare various options from several retailers online within a few clicks. Then, wanting to touch and see the product in person to ensure what they see online is what they will get. The changing customer habits have led to shoppers browsing an online catalog first and then purchasing the item in-store. Or ordering online but preferring to check the product in the store. This process has given rise to the BOPIS (buy online, pick up in-store) model. Whatever option customers choose, the ‘phygital’ retail experience begins online but most likely ends in the store.

Today, a series of online retailers have understood the importance of customers wanting to touch and feel products before finally concluding the sale. All of this benefits customers since it’s a way of putting them at the center of transactions, whether it’s online or offline. While online allows them the ease of a one-stop-shop platform along with the home-delivery convenience, brick-and-mortar stores provide them with the advantage of touching and feeling products, fostering greater customer satisfaction.

As things stand, some sections may be debating the benefits of one over the other as far as customers are concerned an omnichannel approach is what they enjoy most. But some elaboration from the perspective of both segments will offer an overview of the dual approach.

Clicks to Bricks and Vice Versa

In the past few years, despite enjoying tremendous success in online sales, furniture, fashion, and other brands have been expanding their physical footprints, which seemed unimaginable some years earlier. Most online furniture retailers predict that an on-ground presence helps them display a curated range of products to customers. Therefore, potential customers obtain a first-hand idea of how the item will look in their homes. The once-exclusive e-tailer admits consumers flit frequently between online and offline modes. Consequently, retail players must engage customers in whatever platforms they wish to access to build and retain loyalty.

Similarly, an online skincare and beauty brand owner reveals the expanding footprint via brick-and-mortar stores is meant to augment the brand presence across online and offline channels, enhancing the customer value proposition. This applies to other digital-native players as well, providing users seamless online-to-offline experience is becoming highly popular.

Amazon India’s success story stands as testimony to the criticality of deploying an offline presence that augments the last-mile delivery network. This permits the global e-commerce behemoth to furnish its offline partner outlets with relevant training such as browsing and navigating its sites, which then helps their customers to create Amazon accounts, undertake transactions, respond to status-delivery linked queries and seek refunds/returns if required.

Moreover, customers may enter a local Amazon store to seek assistance while shopping online at the site but opt for payment via COD (cash on delivery) or simply swipe their card at the store while placing an order.

Conversely, retailers who earlier dominated the offline-only retail segment have already accelerated moves to keep pace with online players, propelling competition to higher orbits. The most significant instance is Walmart’s $16 billion acquisition of a 77 percent stake in online player Flipkart.

With consumers increasingly using mobile phones and other technology-linked devices to shop, brands are being forced to take their evolving habits into account. As a result, retailers are innovating to cater to changing consumer trends even if it means going the extra mile to serve these users.

Benefits of a Symbiotic Equation

The link between online and offline channels is emerging as a symbiotic relationship for both models. For example, high-street stores help online brands enhance their on-ground presence while allowing them an advantage in logistics and distribution. Likewise, offline brands benefit from the vast online catalog and a comparatively seamless shopping experience backed by better branding.
 
The clicks-to-bricks strategy has another benefit. As hundreds of millions follow Facebook, Instagram, and YouTube, brands can make local shoppers aware of their stores by leveraging social media to lure consumers offline into the stores. Geo-targeting can help advertising brands choose cities and towns where they have a physical presence to display their ads on social media. For instance, a pop-up via an app can target users within a 20-mile radius of a brand’s store. Any person who visits the brand’s website with a target will then receive a pop-up message the moment he/she is near the retail store’s location. Geo-targeting can help brands generate greater sales and revenues. 
 
As per Shopify statistics, e-commerce retailers have returns rates that are 11 percent higher compared to physical retail outlets. Moreover, 22 percent of online returns are triggered by customers feeling an item ordered online didn’t look the same in real life. A clicks-to-bricks strategy ascertains return rates are lower.   

Finally, online retailers don’t need huge stores to achieve this goal. Showrooming is based on having a reduced inventory outlet stocked with best-selling products only. Once online shoppers are clear about what the product looks like in real life, they can purchase the item either online or within the store itself.

Considering the complementary advantages of both online and offline channels, retailers adopting an omnichannel approach are bound to benefit in the days ahead.