Why retail needs eCommerce (not the other way around)

And why you should watch the deodorant aisle

Is deodorant the consumer canary?

One of the interesting data points that came out of the pandemic reporting was a decline in deodorant sales. Naturally, people were going out less, gyms were closed, and social gatherings were restricted—and since Zoom hasn’t invented smell-o-vision yet, deodorant was less of a concern. The more obvious behavior shift came out of the apparel sector with consumers only willing to wear elastic waistbands as WFH became the norm. 

But the first two months of 2021, with positive vaccine news and declining case numbers, brings new optimism and signals from consumers that they’re ready to think about life after the pandemic. Beauty brand founders are discussing a sharp uptick in deodorant sales and earnings reports show consumers buying more than athleisure. 

Additionally, fewer than 8 in 10 consumers are avoiding public places according to Coresights Research. In a weekly survey from February 22nd, consumers reported purchasing more apparel in stores than online for the first time since November 2020. Avoidance of indoor dining, recreational activities, and public entertainment venues are also declining steadily.

All of these signals read net positive for physical retail. However, there is a danger in misreading the data to confirm a return to pre-pandemic ways. As you’ll see from my article below, there will be no return to 2019. Make no mistake, consumers will never shop the same way as before and complacent retailers are and will continue to be on the chopping block. 

ICYMI 

All rooms are eligible for the home improvement revolution, including kids’ rooms. Play furniture is on the rise and brands like Nugget are well positioned to grow even as we exit the pandemic. I give my thoughts to Retail Brew here. 

Retail needs eCommerce, not the other way around

In the early days of the digitally native brand revolution, a physical presence was used as a way to legitimize a brand and its product. Warby Parker’s founders opened a showroom in their apartment for customers to try on the glasses and Bonobos opened guideshops for customers to touch and try the clothing. Entering physical retail became an important, and almost necessary, part of a DNBs growth. 

Today, however, we’ve seen this phenomenon come full circle. Brands that are born online have the ability to stay online for the long-term, but physical retail without a connected digital experience is floundering. Even mom and pop boutiques have Shopify websites. 

Better Together

Physical retail is not going away any time soon (or ever, really), but eCommerce will continue to gain momentum and will likely someday eclipse physical retail as the go-to destination for all purchases. But, it’s clear that there are strengths and limitations on both sides and the more brands can combine the two, the better the customer experience will be. 

Build on the good. The top three reasons for shopping in a physical store are 1. To touch and try, 2. To discover additional products, and 3. To socialize with friends. 

The top three reasons for shopping online are 1. Convenience, 2. Finding the best price, and 3. It’s relaxing.

If a brand can infuse the digital experience with the elements that customers enjoy about physical retail, and do the same for digital elements in their retail stores the result will be a better overall customer experience and increased customer loyalty. 

Mitigate the bad. The top three complaints about shopping in physical stores are 1. Crowds, 2. Queues, and 3. Sizes out of stock.

The top three complaints about shopping online are 1. Waiting for delivery, 2. Unpredictability of fit, and 3. Paying for shipping. 

These complaints should not be surprising on either side. However, there are things each can help the other with to improve the customer experience. Giving customers the ability to begin a transaction in one channel and finish it in another will decrease inconveniences on both sides. 

The bottom line is that, now more than ever, customers are looking for seamless, connected experiences. Building the infrastructure and muscle memory to provide channel agnostic shopping will serve brands well in the long run.

I work with brands to build, expand and run a retail channel that drives revenue and customer acquisition. Want to explore how we can work together? Schedule a time to chat.