brick and mortar
The practice of “showrooming,” or viewing an item in a retail store and then buying it online, has brought the e-commerce threat directly to bricks-and-mortar retailers.
Mobile raises the showrooming threat to a new level since price comparisons are available to shoppers immediately, as they make decisions and browse e-commerce websites in stores.
We also look at what the big retailers are doing to combat showrooming, and identify the five broad strategies that will help brick-and-mortar retailers win business from showroomers.
Take a look at this chart from our report:
Estimates of how much retail volume is influenced by smartphones vary wildly, but here are some numbers that gauge mobile showrooming’s influence:
- IDC predicted that smartphone use would influence between $700 million and $1.7 billion in U.S. holiday season retail sales in 2012. Fifty-nine million U.S. shoppers will use their smartphones to showroom in 2013.
- Deloitte Digital believes smartphones influenced $159 billion in U.S. store sales over the course of 2012 or 5 percent of the total, and will influence $689 billion of store sales in 2016.
- A recent study revealed that JC Penney — which just announced a disastrous 32 percent decline in same-store sales for the fourth quarter of 2012 — is at risk from showrooming because showroomers visited its locations 14 percent more frequently than the average U.S. shopper did in January 2013.
| | Email this | Comments
Brick-and-mortar retailers are scared of being reduced to a “showroom” where shoppers go to try items out before going online to make the final purchase. Some feel that the showrooming panic is totally overblown, but there’s one segment of retailers that’s particularly affected.
Consumer electronics retailers are experiencing more showrooming than any other category by far.
More than 6-in-10 customers who have used showrooming bought an item online in that category, according to a slide from comScore’s “State of the Internet in Q1 2012” presentation by senior director Tiffany Walker. No other product category came anywhere close to that number.
As the biggest consumer electronics big box store out there, Best Buy needs to do something about this fast.
Acting CEO Mike Mikan said as much at his company’s recent annual meeting. “[The customer's] needs have changed,” he said. “We, unfortunately, have not.”
Here’s the chart:
We’ll forgive you if you failed to take MIT up on its offer take its courses for free when it rolled out its MITx online learning platform last year. However, Harvard took notice of its efforts, and has joined MIT online to form the edX platform and offer courses and content for free on the web. There’s no word on the available subjects just yet, but video lessons, quizzes and online labs will all be a part of the curriculum, and those who comprehend the coursework can get a certificate of mastery upon completion. edX won’t just benefit those who log on, either, as it’ll be used to research how students learn and how technology can be used to improve teaching in both virtual and brick and mortar classrooms. The cost for this altruistic educational venture? 60 million dollars, with each party ponying up half. The first courses will be announced this summer, and classes are slated to start this fall. Want to know more? Check out the future of higher education more fully in the PR and video after the break.
MIT and Harvard announce edX web education platform, make online learning cheap and easy originally appeared on Engadget on Wed, 02 May 2012 18:39:00 EDT. Please see our terms for use of feeds.
Modernization’s not for everyone — just take a look at Western Union. That 19th century institution’s finally getting its virtual act together, introducing a new digital payments platform today, dubbed WU Pay, that sadly does not involve laundering dough through the late, great ODB’s hip hop clan. No, this forward-facing system, built upon its eBillme acquisition, takes a backwards approach, eschewing direct payment options for something more circuitous. Customers that opt-in for the service at checkout from any number of partnered merchants, like Kmart or Sears, won’t have to link to their credit card accounts or even offer up any financial info. Instead, once the item is purchased, they’ll receive a bill via email that can then be paid online or at one of the company’s brick-and-mortar sites. Sound unnecessary to you? We sure agree. Now if only this innovation involved Marty McFly and Jason Alexander personally delivering those funds — that’s a service overhaul we can get behind. Check out the PR after the break.
Western Union debuts WUPay digital platform, misses the point of convenience entirely originally appeared on Engadget on Fri, 23 Mar 2012 05:53:00 EDT. Please see our terms for use ! of feeds .
From 2010 to 2011, Redbox’s percentage of the physical-disc rental market increased from 25% to 37%, according to market research firm NPD Group. (via Deadline)
Meanwhile, Netflix’s share stayed flat, despite the Qwikster debacle and Reed Hastings’ statement that DVD-by-mail subscribers will decrease steadily from here on out. Brick-and-mortar stores like Blockbuster lost 7%. And video on demand continues to increase in popularity, now accounting for 31% of all rentals.
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
advertising Amazon android apple business business insider chart com company conversation day demo EDT email email contacts Engadget Facebook Goog google iPad iPhone Join market marketing mdash money news news items online percent Permalink phone report search share SOURCE store story time today twitter use video way year