+ 44 20 8144 3706(1)Does growth in the online shopping mean extinction of high street store
In the past couple of years online shopping is increased and due to this reason departmental stores observe a decline in their income and their revenue mostly remain below expectation which is one of the main concerns of the firms following Brick and Mortar model. However, growth in online shopping does not mean extinction of high street store. There are two weak points of the high street stores due to which online shopping is increasing consistently. These weak points are limited choice and high price relative to online shopping sites. What customers love foremost is the choice in respect to the product (Powell, Horvath and Brandtner, 2016). If they will have a sufficient choice they can prefer to shop for store. In today’s time period recession is observed in multiple nations and some nations are at recovery stage. Hence, people have less money to spend on shopping. Online retail is making available products at cheaper price and due to this reason it can be said that people make more purchase online. They are getting good quality of product for money they spend online. Thus, value for money is another factor motivating people to buy product online. This does not mean that the high street store will be eliminated. If these stores will make available product at a cheaper price with wide choice people will prefer to buy offline also. Amazon has recently opened its first store in the USA. Mentioned firm understands that people cannot buy a product online from online or offline model. People will purchase some products online and some products online (Luo and Sun, 2016). Price, choice and quality of service matter for them in both models. Hence, online shopping does not mean extinction of street store.
All sorts of products can be sold online ranges of edible items to electronic items. In today time period, even second hand cars and scooters are sold online. Tangible product and services are more dominant online, then intangible services. Online, people can apply for services, but in some cases, they have to visit a financial institution to complete formalities. Customer’s involvement increased greatly with the Co creation of products and services (Dhankar and Malik, 2015). Retailer firms use analytics algorithms and techniques like “Market basket analysis’ etc. to evaluate customers buying pattern and on that basis take business decisions and improve their services accordingly. The shift is seen in the people buying behavior as now they research in store and make online purchase. One of the main limitations of the online purchase is that people like to do interaction with someone who has good knowledge of the product. Online people cannot get such kind of advice and due to this reason they first of all, do offline research and then buy product online to make purchases at low price. Thus, it can be said that customers can easily make purchase all sorts of products online. If the high street store will make available product at a reasonable price, then people may like to buy a product from the shop then online. Stores have good knowledge of the local market and accordingly they keep products in their stores. In other words, it can be said that by keeping customers in mind retailers offer products to them and deal with them (Lian and Yen, 2017). There are large numbers of retail stores that have a loyal customer base. Hence, they remain for years in the market. It can be said that online market will not completely replace retail stores. Today, also there are a number of people who give priority to the after sales service and return of product as the main factor while making purchases and prefer to buy a product from retail store than online platform. Thus, overall it can be said that still there are number of factors due to which people like to buy product from shops and online shopping platforms cannot completely take place of high street retail stores (Amazon opens non- virtual bookstore, 2015).
References:
Books and journals:
Campo, K. and Breugelmans, E., 2015. Buying groceries in brick and click stores: category allocation decisions and the moderating effect of online buying experience. Journal of Interactive Marketing. 31. 63-78.
Dasteel, J. H., 2017. Consumer click arbitration: a review of online consumer arbitration agreements. Arbitration Law Review. 9(1). 1-42.
Dhankar, R. S. and Malik, K., 2015. CASE STUDY: FLIPKART: TURNING BRICK AND MORTAR MARKET INTO A CLICK MARKET. Prestige International Journal of Management & IT-Sanchayan. 4(1). 100.
Dua, S., 2017. Internet banking: Transformation from brick and mortar to click and order. ZENITH International Journal of Business Economics & Management Research. 7(11). 145-153.
Lian, J. W. and Yen, D. C., 2017. Understanding the relationships between online entrepreneurs’ personal innovativeness, risk taking, and satisfaction: Comparison of pure-play and click-and-mortar. Journal of Organizational Computing and Electronic Commerce. 27(2). 135-151.
Luo, L. and Sun, J., 2016. New product design under channel acceptance: brick‐and‐mortar, online‐exclusive, or brick‐and‐click. Production and Operations Management. 25(12). 2014-2034.
Marmol, M., 2019. Trigger factors in brick and click shopping. Intangible Capital. 15(1). 57-71.
Payaro, A. and Papa, A. R., 2016. Products suitable for ecommerce. A proposed model for click and bricks companies. In 4 th International Conference on Contemporary Marketing Issues ICCMI June 22-24, 2016 Heraklion, Greece (p. 115).
Powell, W. W., Horvath, A. and Brandtner, C. 2016. Click and mortar: Organizations on the web. Research in Organizational Behavior. 36. 101-120.
Rancati, E., Codignola, F. and Capatina, A., 2015. Inbound and Outbound marketing techniques: A comparison between italian and Romanian pure players and click and mortar companies. Risk in Contemporary Economy. 2(1). 232-238.
Sakalauskas, D. P. and Ibeh, K. I., 2015. The Internet and ‘Brick and Mortar’Marketing: some Empirical Insights from Both Sides of the Atlantic. In Creating and Delivering Value in Marketing (pp. 77-81). Springer, Cham.
Online
Gfk: Young Shoppers expect brick- and- click retailing, 2015. [Online] Accessed through: <https://www.youtube.com/watch?v=geMoByjd0so>
Has brick- and- mortar stores lost the battle against e- commerce? 2017. [Online] Accessed through: <https://www.youtube.com/watch?v=zZU2hEghTGc>
Amazon opens non- virtual bookstore, 2015. [Online] Accessed through: <https://www.youtube.com/watch?v=XPJ-UI_JzHw>
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