Digital Disruption: Changing Landscape of Retail

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Transcript of Digital Disruption: Changing Landscape of Retail

Online Sales

(June 2015)

Offline Sales

(June 2015)

ONS Data John Lewis Partnership

Online Sales

£1.4bn

Offline Sales

£7.6bn

Of Apple’s direct sales are through its 437 retail stores

Net sales per store on average in 2014

68%

40%31%

37%28%

43%37%

33%

19%26%

Clothing Books Entertainment Home Furnishing Technology

In-Store Online

Bought clothes in-store in

the past 6 months

Bought clothes online in

the past 6 months

Of those who bought online did not trial the product before buying

Of those who bought in-store trialled the product first

Online Convenience Get good

deals

Can read

customer reviews

Gives me ideas

of what to buy

I can easily see

alternatives

In-Store Know it’s high quality I can easily see

alternatives

It’s easy to return to

store

Convenience Gives me ideas

of what to buy

Too many people!

Crowds and queues…

When it’s very busy and crowded.

Stupid people queuing...

All the crowds of people queuing at the checkouts.

Other people, especially the rude ones.

The crowds, the noise and being crammed into a small space.

75%63%

24% 25%36%

44%

Browsed product range Compared products and prices

Retailer Website

(e.g. Argos)

Physical Store Online Retailer

(e.g. Amazon)

18-34 35-54 55+

69%64%

50%

44%

28%

9%14% 12%3%

MobileLaptop Mobile App

Location-based

sales

I-want-to-buy

spontaneity

Always-on

information

Lead to a store visit that day

Increase in the number of near me searches online

Lead to an in-store purchase within 24 hours

In-store

Satisfaction

Online

Satisfaction

In-store

Satisfaction

Online

Satisfaction

Channel

Integration

Excellent Customer

Service

Convenience Curation

They offer a great delivery service, an excellent website,

great customer service and high quality products.

Fabulous customer service, great quality and

well-curated website.

Exceptional range, price and display.

Easy to order and pick up in store.

The website is amateurish and their in-store staff seem

disinterested and underpaid.

Orders are accepted and then days later you

are told it’s not in stock.

The customer service team never reply to e-mails, never

respond to queries. It made ordering stressful and over-

complicated.

The search function on the website is appalling!

Most of the product images are tiny and their

categories make no sense at all.

The website always freezes when it’s trying to process

your payment.

They force you to open a store account with them and

make it harder to order online without one.

e-Commerce and m-Commerce have complimented, not conquered

Brick-and-mortar stores are central to our product selection process

As our daily lives transition more to a mobile and always-on environment

Digital channels live and die by the same rules as the high-street