How can brick-and-mortar stores compete with online retailers?

Ankita Katdare · 2015-05-21T19:11:10+00:00

In May first week, the largest hypermarket chain in India aka Big Bazaar's CEO Mr. Kishore Biyani declared that as early as next month, they will be launching the Big Bazaar app to compete with the likes of Flipkart and Amazon in India. It isn't hidden that brick-and-mortar stores have been struggling ever since India began rapidly embracing e-commerce stores for everything from their shoes to grocery to hairpins to what not. There have been lot of talks about how customers are thronging e-commerce portals instead of malls and shops because the price-difference is huge. People go to shops to check a product, if they find it worth buying, they check it on their apps then & there and if there's heavy discount available, they simply leave the shop without buying, go home and order it online. Flipkart, Amazon, Snapdeal and others have been offering SALE after SALE to lure customers. So, what should be the strategy for brick-and-mortar shop owners to retain their audience or prevent potential customers from turning away from them? Any thoughts?

How can brick-and-mortar stores compete with online retailers?

Ankita Katdare

Administrator

Updated: Oct 26, 2024

Views: 1.8K

In May first week, the largest hypermarket chain in India aka Big Bazaar's CEO Mr. Kishore Biyani declared that as early as next month, they will be launching the Big Bazaar app to compete with the likes of Flipkart and Amazon in India.

It isn't hidden that brick-and-mortar stores have been struggling ever since India began rapidly embracing e-commerce stores for everything from their shoes to grocery to hairpins to what not.

There have been lot of talks about how customers are thronging e-commerce portals instead of malls and shops because the price-difference is huge. People go to shops to check a product, if they find it worth buying, they check it on their apps then & there and if there's heavy discount available, they simply leave the shop without buying, go home and order it online.

Flipkart, Amazon, Snapdeal and others have been offering SALE after SALE to lure customers.

So, what should be the strategy for brick-and-mortar shop owners to retain their audience or prevent potential customers from turning away from them?

Any thoughts?

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rithesh salian

Member • May 21, 2015

1 Experience in the field always matters
2 They only need to improve in faster home to home delivery
3 Apps is the best method, competitive price they are already into, so they can just do is to upload item list .
4 products are already known by the customers as it is well marketed in the stores

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Ankita Katdare

Administrator • May 21, 2015

Here are some thoughts:

1. If most brick and mortar shops imitate the way Big Bazaar is adopting mobile (App) platform or push their presence online: That will be just copying their competitor.
In other words, they find success in being just like their competitor.

Apps are the future. All hail apps. Go online. Rule.

2. It would be interesting to see how a brick and mortar store retains its position by being the best at what it does and giving the best possible experience.

How to do that?

Note: I am being highly optimistic here, but anyway.
Brick and Mortar stores can create an 'unique' experience for their visitors and turn them into customers. Add a charm to the shopping experience. Make customers feel like they belong there and make them want to come back again & again.
(If you have visited an Apple store and have had a pleasant experience there, you know what it feels like.)

Much like going to a your favorite restaurant for its ambience, food or music or happy servers and smiling managers - a customer can be made to come back to your shop. Give them a custom, unique experience in terms of products and service. Whatay combo that would be.

Now coming to the main pain-point - The pricing!

Well, if you can't lower the prices, make the customer buy more stuff. The same practice shopping malls brought to the table and ate up small shop owners' cake.
The number one pass time for thousands of youth still today is 'shopping'. That's their number 1 idea of hanging out, next to coffee shops and movie theaters.

Like #-Link-Snipped-# said above, fast home delivery is always a great idea.

Last but not the least, build a digital presence for 'promotion'. Engage customers in giveaways and contests and host events at your shops.
Build a brand value to the shop that stands out.

I guess there's a lot to be done in this space by brick-and-mortar stores to combat the e-commerce retailers.

PS: These are just random ramblings. Didnt think twice before posting.

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Uma Shankar Nallaiah

Member • May 21, 2015

#-Link-Snipped-#

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Ankita Katdare

Administrator • May 27, 2015

#-Link-Snipped-# Thanks for sharing the link. It has several interesting points.
I agree with the fact that a 'great service' can give great results in the long term
Many e-commerce website customers are infuriated these days because of poor customer service. When they want a refund, they have to keep calling n number of times. When they want to return or exchange goods, the policies aren't straight-forward.

Brick and Mortar shops can find the advantage there. They can get great sales staff and make it easier for customers to return, exchange, or refund products. People would highly recommend if such great service wins their hearts.
Brick and Mortar shops can also start home-delivery and home pick-up for added comfort.

I love these tips:

Once a customer picks a product and wants to make a buy, ask them to follow the brand on Twitter and like their Facebook page.. in exchange offer a small discount. Trial rooms for clothes can let the customers click photos of new clothes on them and take part in the shop's official promotional contests. There's much to be done here.

Tagging #-Link-Snipped-# #-Link-Snipped-# #-Link-Snipped-# #-Link-Snipped-# #-Link-Snipped-# #-Link-Snipped-# to share their views.
How can brick and mortar stores compete the e-commerce giants?

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Anoop Kumar

Member • May 28, 2015

I think Big Bazaar have an edge here. They can adapt the modal of SportDirect from UK.
People have option to buy online or from big stores. People can try the things and buy from online.
What SportDirect does is if charge for online shopping (which is usually cheaper) and give your extra voucher to spend in stores. So people have to go store to buy more. Also they give option to collect in nearest stores.
Benefit for business is here : you don't have to ship separately to each customer and mostly people use collect in store because anyway they have to go to store to spend vouchers.

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Kaustubh Katdare

Administrator • May 28, 2015

They don't have to. In fact, the online retailers are now tying up with the local brick and mortar stores for quicker delivery.

Examples: ShopCity - a startup that lets you discover what's your local store selling.
Flipkart / Amazon Marketplace: Local stores can sell stuff online and can fulfill local orders quickly. For example, a mobile store owner next door can fulfill my order quickly via Amazon.

Kirana Stores may sign up with online retailers to ensure faster delivery of goods.

I think the midway path is that the online retailers become the middle-men to control financial transaction, billing and order management while the local shop-owners will be the actual sellers.

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Anil Jain

Member • May 28, 2015

The only to beat e-shopping is to lure the customer more than the e-shopping vendors.
As pointed out by Anoop, give offers that forces customer to come on shop again for doing shopping (by giving discount on other items). Having said that, the big question - Can they beat e-shopping in pricing?

NO, they can't.

Sometime, there isn't a solution for every problem. Rirght?
We need to agree that e-shopping is the way to go, Brick and mortar shops will soon be a story in the books.

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Ankita Katdare

Administrator • Jun 2, 2015

Interesting points by #-Link-Snipped-# #-Link-Snipped-# and #-Link-Snipped-#
Looks like the future is dark for our favourite shops.
My own experience with clothes shopping has been that the clothes look so much better on the website with the models wearing it and the same looks dull in the shop. Without a doubt, the chances of the user buying it through the web portal are much higher.

The last time I went to a mall, every shop - Pantaloons, WestSide, Reliance Trends etc.. wanted to shove a card in my pocket that gives me 'virtual points' that can be used to get discount on my next purchase.
^ Now I am not a shopaholic, so those scheme don't work with me.
A coupon code for buying right away with a discount works so much better.

TechCrunch has an interesting article about: Why Online Retailers Continue To Open Brick-And-Mortar Stores. Do google it & read.

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Anoop Kumar

Member • Jun 2, 2015

Interesting point in TechCrunch article Amazon is going to open store in NewYork.
I am pretty much sure that if Flipkart will open a store in any city, they are going beat other stores for sure.
This is best strategy, spend time online what to buy and get surety at stores. This is win-win for both seller and customer.
Some of my friend already doing it. They choose what product is good in stores and order online in lesser price 😁

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Anil Jain

Member • Jun 3, 2015

I would differ a bit !
One of the main reason why e-shoppers are selling in cheap is they are not spending money on shops, electricity, rent and maintenance. They are saving money there and passing it on.

I have seen that price for clothes were much cheaper on e-sites of MACY's rather than on store.

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Ankita Katdare

Administrator • Jun 15, 2015

#-Link-Snipped-# Don't you think that if Flipkart or Amazon opens a brick-and-mortar shop in Mumbai, it can sell goods at a much lower price? Will the online heavy discount model completely fail in normal stores? Surely, there would be a workaround.

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Anil Jain

Member • Jun 15, 2015

The heavy online discount model with no overhead charges of maintaing a show-room, AC's, lights, and a dozen salaried employees may not completely fail.

However it will surely take a hit. There is no workaround to that in my mind.

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Anoop Kumar

Member • Jul 28, 2015

Update: Flipkart is opening 100 offline collection centers in 10 cities.
Source: <a href="https://economictimes.indiatimes.com/industry/services/retail/flipkart-launches-offline-collection-centres-for-online-buyers/articleshow/48250621.cms" target="_blank" rel="nofollow noopener noreferrer">Amazon: Flipkart launches offline collection centres for online buyers - The Economic Times</a>

It is sometimes more convenient and faster way to receive products.

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Kaustubh Katdare

Administrator • Jul 28, 2015

Anoop Kumar
Update: Flipkart is opening 100 offline collection centers in 10 cities.
Source: <a href="https://economictimes.indiatimes.com/industry/services/retail/flipkart-launches-offline-collection-centres-for-online-buyers/articleshow/48250621.cms" target="_blank" rel="noopener noreferrer">Amazon: Flipkart launches offline collection centres for online buyers - The Economic Times</a>

It is sometimes more convenient and faster way to receive products.
Interesting. I'm wondering what problem are they solving? If I need something - I can simply get it from the store anyway. Why do I need to pay Flipkart first and then go to pick up the product myself? I'm curious to see what problem are they planning to solve. Read about <a href="https://www.crazyengineers.com/threads/f-qck-flipkarts-hyper-local-delivery-service.81913">f Qck : Flipkart's Hyper Local Delivery Service</a>?

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