The Office of National Statistics latest figures on retail performance indicate that sales volumes in January 2012 increased 2% year-on-year. In this right to reply article, Kentaro Hyakuno, CEO of Rakuten’s Play.com, looks at how these sales volumes were driven primarily by non-store retailing, and what this means for the ecommerce industry.
It was not so long ago that the weekly shop was conducted at the local high street, but in recent years this has changed dramatically and today’s figures highlight the growth of ‘non-store’ retailing and the continued decline of the high street.
Many believe that bricks and mortar will continue to steadily lose ground to their digital competitors in the coming years, but this doesn’t have to be the case. E-commerce can be used to complement and encourage offline sales as well as loyalty.
Rather than facing a simple ‘death of the high street’ scenario, retailers are in fact in a process of acclimatising to a new connected retail environment.
Today’s shopper is a complex beast. They engage with brands in a variety of different ways when coming to a decision about what to buy and where to buy it.
The offline and online worlds continue to merge and consumers are turning to an ever wider variety of social and commercial information sources before making a purchase. While many view the connected customer as more valuable, the bricks and mortar experience is something many consumers still value.
The key for retailers is to combine the flexibility and convenience that online, mobile and social channels deliver, with the customer service and tangibility of the physical shopping experience.
By bringing together these elements, retailers will make their offerings and service more compelling to their customers. This in turn will lead to increased revenue and improved brand value for the businesses themselves.
By Kentaro Hyakuno
CEO
Rakuten’s Play.comwww.play.com
