Taking your first steps into the omnichannel space as a D2C brand can feel like a big risk. However, for many brands there comes a time when not taking the risk can start to damage their growth potential. So, how do you know when that time has come? Based on my years of experience helping D2C fashion and lifestyle brands successfully expand into the omnichannel space, I’ve identified a number of ‘tipping points’ that can make the decision-making process much clearer and easier. Continue reading to find out if your D2C brand is ready for omnichannel success.
Do you experience unpredictable fluctuations in demand?
It’s standard for brands to experience peaks and lows in demand throughout the year. But a surprising benefit of going omnichannel is that it makes these fluctuations more predictable and therefore more manageable. According to our in-depth analysis of client volumes over the past few years, those that have adopted an omnichannel strategy have benefited from more predictable demand than for example at the online-only players. This is not to say that they haven’t experienced the usual ups and downs, but overall demand has been more consistent.
This is largely because going omnichannel allows greater flexibility in responding to changing market conditions. What we’ve found out through our research is that there are certain times of the year when e-commerce is much more popular, and certain times when this popularity drops considerably. You’re left exposed during those periods in case your brand is online-only,. The addition of physical locations to your channel mix can however help to shield your margins from the impact of these fluctuations. Additionally, it makes forecasting your inventory demand far easier, which in term helps you deliver a great customer experience. Omnichannel brings you closer to your customers.
Do you have a high concentration of customers in certain locations?
Omnichannel can also help you target audience segments that prefer to shop in person. it makes it much easier to cater these type of expectations. If analytics show a high concentration of customers in certain cities or regions, a physical store in those locations could serve to that existing market more effectively and more successfully, than an online-only approach. Our clients often talk about the reach and accessibility that omnichannel enables, targeting those customers that have hybrid shopping habits. Indeed, 70% of fashion shoppers surveyed by retail software provider Bazaarvoice prefer a hybrid shopping experience that combines the physical with the digital.1 It may be worth you wild surveying online your customers to gauge their feelings about a potential physical store.
Another benefit of bricks-and-mortar stores is that they can be used to further optimise inventory management by turning them into ‘micro fulfilment centres’ (MFCs). A Click and Collect service, targeting customers that don’t want to wait to get their hands on a particular item, allow for the items to be picked up in the stores, with your store teams picking and packing the order. The same set up can be used to (help) fulfil the orders as received from your online stores. This makes it easier to successfully manage peaks in demand, resulting in a better overall customer experience.
Do you experience high return rates?
Many fashion brands experience high return rates, which are often due to sizing issues. When customers shop at physical stores, they can try on items there and then, preferably with a trained sales assistant to help them pick the right size and style. This makes for a much more satisfying customer experience, leading to an improved brand perception. It’s no wonder that 54% of consumers still prefer to shop in-store, according to Emarsys.2
Would a physical store help your products shine?
Some products, especially more high-end or intricate ones, can be difficult to display online in a way that truly does justice to your brand. A physical store can provide a more engaging customer experience by showcasing your products in their element. Dutch accessories brand My Jewellery has made this approach a core part of its growth strategy. Starting online, CEO Sharon Hilgers quickly decided to expand the brand into physical locations. The stores build on the brand’s strong social media ‘personality’, reinforcing a strong bond with its core audience by embodying the lifestyle which the brand is known for. A physical location can also enable more effective cross-selling, with curated layouts that inspire customers to buy multiple products rather than just the one they came in for. This can make a shopping trip a much more uplifting and meaningful experience.
Your first steps to omnichannel success
As we’ve seen, going omnichannel can help you to increase customer intimacy, improve demand forecasting and extend your brand’s reach. However, your initial omnichannel move doesn’t have to be a full-blown mono-brand store. In fact, many D2C brands have successfully launched several different pop-up concepts that showcase the best of the brand in an engaging way before launching a permanent physical presence. This strategy can help ‘test the waters’ to see if there is consumer appetite for further physical locations. The key to any successful omnichannel move is to always put the needs of your audience first – it’s time to meet them where they are.
There are many more brand-specific ‘tipping points’ to consider before embarking on your omnichannel journey. Contact us today for a free consultation with a Bleckmann expert.
