From online trade to the offline world
28.11.2019 / Expert Articles
It’s very easy to set up an online shop nowadays. Various providers offer online shop systems suitable for amateurs or smaller companies to set up an online shop almost instantly, and even without a big budget. This is a great option for small businesses, start-ups, or manufacturers which are more focused on the craft or their services to allow them to easily send their products out into the big wide world and to conquer the global market in no time. There are considerably fewer obstacles to entry than in the past and webshop operators can gather all kinds of important information free of charge: blog entries, YouTube videos, and podcasts that explain online trading and how to set up an online shop in detail, as well as many relevant best practice examples assist further.
But even established online giants are now increasingly exploring the advantages of the analogue offline world. How come? Sales in stationary trade have dropped noticeably, many shops have been left empty, especially in smaller towns and even more so in villages, where these are virtually just ruins. Larger shopping malls also have a hard time getting their spaces occupied and generating turnover. So why the “online going offline-strategy” or “online going offline-again-strategy”?
Today I go offline
Offline is not the death penalty to online trading. It is actually a tremendous opportunity to build a platform for customer experience with one’s service and product. Precisely the touch and feel of materials, odours and scents, and trying out a product or service in a real situation are what speak in favour of a physical store. Many brands and businesses are rediscovering offline trade as a powerful tool to bring the philosophy and virtues of their own products to life. It is also a chance to provide a 5-star service and create a pleasant atmosphere in the shop thanks to dedicated staff. With its lighting, smells, materials, inviting seating options, plants, refreshments, and sounds, the store atmosphere also offers a world to inspire and pamper the customer.
Omnichannel is the way
The potential lies in interlinking online and offline commerce. In this way, online orders can be picked up directly in store. Or the customer can request a service appointment online and then discuss any further queries in the closest shop swiftly and conveniently with the staff. Trained shop assistants can also make cross-selling offers in store and respond to individual wishes which may come up in direct contact with a customer. Also, customer loyalty programmes with discount coupons and extra gifts and samples can positively impact the experience and encourage customers to visit the store more frequently. Sustainability aspects are also becoming all the more important for customers, for example first checking whether the store has the desired product in stock online. They can then pick it up themselves without the need for an individually wrapped package.
“So-called impulse purchases are becoming more and more frequent online,” says Jürgen Eikmeyer-Bloch, Chief Sales Officer at Figo GmbH. “Still, there is no substitute for the joy of shopping with bags hanging on your arms, strolling past shops and shop windows, and indulging in a cappuccino while shopping.” It is common for repeat purchases to be made online and “more basic” products such as soap, detergents, and the like also tend to be ordered via Internet. More “experience-rich” products such as a new perfume or a cashmere coat, by contrast, are rather bought in actual shops. Ideally, the wish list and the virtual shopping bag can coexist online and offline, thereby connecting shopping on the Internet and in store.
Figo supports online brands to take the “offline route”
A successful brand that has built up a second foothold in the offline world is Fahrrad.de by our client Internetstores Group GmbH. Pure online trade of bicycles and accessories has successfully been complemented with “Eddies Werkstatt” as well as an offline trade where bicycles can be tested in the shop, ordered online, and picked up on site ready to pedal off.
By now, Fahrrad.de operates five locations in Germany, and another store is planned to open under the name “Bikester” in Stockholm, Sweden (launch in 2020). Bicycle enthusiasts and genuine mechanics can “upgrade” their bicycles on site which is brilliant. One can exchange ideas with specialists and cycling enthusiasts, discover new cycling routes and test these out. They also provide information about bicycle safety, helmets, cycling gear and the perfect bicycle and cycling equipment even for the smallest clients. The symbiosis of added value and the convenience of online and offline offers, tools, and services is a perfect example of how an established online company can successfully enter the offline world and impress customers with an expanded range of products and services whilst strengthening brand loyalty. René Benko from SIGNA Holding on the “offline movement” strategy: “We believe 100 percent in the future of city centres. The stationary trade is in a phase of transition due to online and Internet trends. The future is in combining strong local presence with own stores and potent online competence.”
Watch our drone fly through the Fahrrad.de store in Düsseldorf on YouTube and check out photos of the project on our Instagram account.
Would you also be interested in boosting your online presence with offline presence? Contact our CSO Jürgen Eikmeyer-Bloch for a personal consultation.
Jürgen Eikmeyer-Bloch
Chief Sales Officer
Fon: +49 234 - 810 305 24
E-Mail: eikmeyer@figo-gmbh.de
About the author
Carina Patrizia Gerards
M.Sc. International Marketing Management with Consumer Psychology
Carina was born in 1987 and is the Marketing Director at Figo GmbH. She completed her academic studies both in Germany and Scotland and has worked in eight different countries, which greatly influences her way of working and her understanding of different markets. Originally, she made her debut in the cosmetics industry, but her love of art and interior design brought her to Figo GmbH, allowing her to combine her passions: retail, interior, and sustainability.