Part 1 of 2
“The internet has undoubtedly had a huge impact on the retail industry in a variety of ways. Perhaps the most notable is how the internet has opened up huge opportunities and benefits for both consumers and merchants.” Those thoughts are according to Ben Wong from tech startup, Bindo. We recently caught up with the VP of marketing to discuss how brick and mortar stores can capitalize on the e-commerce trend, and more in this two-part Q&A.
GlobeSt.com: What impact has the internet had on retail over the past few years? How significant a role does it play to the methods retailers user to interact with consumers?
Ben Wong: With the advent of the internet, shopping has become much more convenient for consumers, who also have more choice now in terms of products, delivery, and payment methods, allowing them to effectively choose their shopping experience. Merchants can now reach a much larger audience, and effect a variety of unique marketing and branding campaigns, which has also led to the existence of web stores and brands that exist purely online, something previously impossible without the adoption of the internet. The availability of the internet and the reach it provides has made digital mediums a huge source of value, which is why we've been seeing merchants heavily shift their focus towards social media marketing, exclusive online promotions, and other sales-generating tactics.
GlobeSt.com: How can brick and mortar stores capitalize on the e-commerce trend, including mobile payments?
Wong: It sounds obvious, but the best way to capitalize on this e-commerce is to simply join in and create a digital presence for yourself. A majority of small, brick-and-mortar stores have no social media or website, making for a very weak digital presence. Make your store and products available not just in a brick-and-mortar store, but also online and use these digital mediums as a way to reach potential customers that would otherwise never have known about your small retail location. In addition, small retail stores should always be looking to keep up with the latest in retail technology like mobile payments and digital wallets. While these new technologies might not be the right fit for all stores, it is very important for merchants to be knowledgeable about the tech in their space, so that they know the pro and cons, and so they're able to capitalize on the potential sales growth and cost-savings provided by new retail technologies. For example, merchants should know that a huge portion of online shopping is now done on mobile devices, making mobile payments a technology that can provide potential for great sales growth.
GlobeSt.com: With the shift of the on-demand economy (including companies like Uber and Instacart), how can brick and mortar stores compete with the likes of these bigger brands?
Wong: The great thing about ecommerce and the internet, is that the playing field is much more level than the physical front. A big retailer has the capital to build more storefronts and hit multiple locations, whereas small retailers can't afford this type of expansion and spending. However, digital mediums are a different story. Sure, big box stores will still have an advantage in capital that can be spent on marketing and digital ads, but in this case, small retailers have access to the same audience due to the borderless nature of the internet. It all comes down to how well a merchant can manage their digital reach. There's plenty of new retail technologies, like mobile POS systems, that can also help a small store reach better efficiency and growth levels. Ultimately, knowing your business inside out, and being proactive with technology and digital tools is key to a small retailer's success.
Check back in the next few days where we chat with Wong about why larger brands will always have the advantage and what smaller retailers can do.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
