Question

1. Will online retailers, in general, experience a positive outcome in opening physical stores?

2. For what types of online retailers does opening stores make the most sense? Why?

3. Is it more challenging for traditional retailers to build an online space, or for online retailers to build a physical store presence?

Answer 1

1. Yes online retailers will benefit in some terms by opening the physical stores as in the authenticity and reliability of the brand increases. Secondly people who are skeptical about online shopping can visit the physical store so not missing out the customers. Even the items that are not available online can be accessed through physical store. Customers are also assured about the quality by seeing the products at physical store. Even solving customer grievances becomes easy if they are not done online.

2. For companies who have just started their business and do not have brand loyalty should open the physical store in order to get trust of the customers. Clothing, footwear, makeup accessories type of products where customer preference and customization matters should go for physical stores along with online stores.

3. Going from online to physical does not have much challenge , however the other way round is bit difficult. Traditional merchandise needs huge investment in terms of IT sector and digital marketing. As traditional retailers have captured a small market it becomes challenging for them to go online and target the large market.