Clicks or bricks, now both

Some e-commerce companies are opening brick-and-mortar stores, even as retailers known for their branch networks are closing some physical locations and putting more emphasis on online retailing.

It's not just Amazon opening real doors to real stores in the United States. Yes, this is a good way to test products, observe shoppers as they browse and enhance brand associations. It's also a good way to identify emerging customer segments and emerging needs or preferences that represent potentially profitable business opportunities.

Online merchants don't have to be e-commerce giants to try brick-and-mortar retailing. Frank + Oak in Canada is also opening stores.

Frank + Oak's original business model was e-commerce clothing retailing. It's using artificial intelligence technology to offer product recommendations to online shoppers, much the way an expert salesperson would recommend products to in-store shoppers.

Now Frank + Oak has a growing chain of real stores in North America, featuring cafes and barbershops to provide in-person experiences that shoppers like. Just look at the store ambiance in this photo . . . it's designed as a relaxed and inviting atmosphere. The message seems to be: browse, relax and maybe buy. Frank + Oak co-founder Ethan Song comments:

There’s still a big space for physical shopping streets and malls. But I do believe the experience is going to be transformed.

One industry observer says that traditional brick-based stores might be able to use new technology to compete with the sophisticated algorithms of Amazon and other blockbuster retailers. He believes retailers can use technology to understand what shoppers are actually looking at in a brick-and-mortar store, and offer instant incentives to encourage browsing of certain merchandise. The technology could help the store change product locations based on shopper browsing and buying patterns, among other ideas.

In other words, just as Amazon and other e-commerce retailers monitor what pages attract shoppers and how long they remain on a page before clicking away, a store-based retailer can use technology to monitor what shoppers are doing and respond quickly, instead of waiting to count what is sold and when.

Burberry: To be a great brand, be a great company

Burberry (founded in 1856) is acknowledged as a great brand, with millions of global brand fans and laudable financial results. What does Burberry think about its stature? Here's a quote from the website:

Burberry believes that to be a great brand, it must also be a great company. Burberry constantly leverages the energy of its creative thinking culture for positive change, within its own organisation as well as in its business partnerships, wider community engagement and societal and environmental impact.


In other words, Burberry isn't just a fashion brand, it's also a creative force for good and for fostering creativity throughout the business world and society. And it has creatively revitalised the 159-year-old brand by using customer behaviour as the basis of its 21st century marketing.

Digital is, of course, a major element in Burberry's brand marketing. The CFO observes: 'We talk about the customer being agnostic, that’s how we think about digital versus mainline [sales]'. Customers can browse and shop as they choose, whether online or via mobile or in stores. Increasingly popular, click and collect (established in 2013) now accounts for 20% of Burberry's digital business. Being able to personalise Burberry sites for individual tastes and interests engaged customers in creative ways, as well.

Not only is Burberry embracing digital, it remains a solid presence in shopping centres and high streets worldwide, with 214 retail stores, 213 concessions, 57 outlets and 67 franchise stores. And it's a social media darling, with 1.7 million FB likes and 128,000 Pinterest followers.

Clicks and bricks evolve

Multichannel marketing continues to evolve as retailers, in particular, test combinations of online ordering and physical store locations that might give them a competitive edge in attracting and serving customers. Clicks and bricks strategies for UK marketers include:

• Buy online, pick up in a store. An example is John Lewis's Click and Collect service, which allows buyers to have purchases waiting for them at a nearby John Lewis, Waitrose or Click+ location. The new John Lewis 'convenience' outlet, opening in London's St Pancras Station this fall, will be a collection site and a retail store stocking high-demand items like home fashions and electronic gadgets. Already, 33% of John Lewis's online sales combine clicks and bricks--meaning one-third of the customers who buy online opt to pick up in a store.
• Independent online retailers test store openings. Here, the idea is to compete more effectively, increase sales and reach customers who don't buy online or prefer to see merchandise before ordering. Remember, the high number of high street vacancies means e-businesses have more opportunities to try operating a store in a good location.
• Pop-up shops allow for testing new products and markets. Clicks and bricks can include a limited-time pop-up shop for a specific occasion, product category and/or market. The temporary nature of pop-ups allows for flexibility and affordability. If the location attracts shoppers, the pop-up may be extended or used in another place or at another time.
• Integrating digital with non-digital in other markets. Tesco, for example, shows how its clicks and bricks approach supports global growth (see below). The UK retail giant's South Korean business combines retail stores and online buying, with savvy use of digital media and customisation. It was a pioneer of the concept of virtual stores featuring  shopping via mobile. 
• What about social media and shopping?  Stores open on a social media site appear to be perceived as slightly less trustworthy, according to a YouGov study. Still, social media content is vitally important for brand-building and awareness, even if shoppers don't actually click to buy via social media. Social media can influence, inform and persuade!