Nevertheless, it’s also important to note that adding physical retail to your channel mix is not always the right choice for digital-native brands. It can be useful to list the pros and cons for your brand when deciding if it’s the right move for you. Here are some of the factors you need to consider when deciding whether or not to add physical retail to your channel mix.
What are the benefits of an omnichannel model?
In-store shopping can provide a much more personalised experience than shopping online. For example, if a customer buys an item of clothing on a retailer’s website only to find that it doesn’t fit, they may feel resentful. This can lead to reduced customer satisfaction and increased returns. Return rates are particularly high in fashion e-commerce because consumers will often buy the same item in multiple sizes or colours and return the ones that don’t fit or that they don’t like. This is less likely to happen in physical stores, where shoppers can try on clothes before buying.
Meanwhile, despite the perceived ease of reaching a global audience through online channels, staying digital-only may actually limit brand awareness. Direct-to-consumer brands rely heavily on digital marketing to gain customers, which is difficult to do in a highly saturated market. An omnichannel approach, on the other hand, can increase brand awareness among the 54% of consumers who prefer to shop in-store. Add to this the rising cost of digital advertising, and physical retail starts to look like an even more attractive investment.
D2C (online-only) retail
Advantages | Disadvantages |
Lower overheads | No physical brand experience |
Low friction and high convenience | Limited product testing capability |
Easy to reach a global audience | No face-to-face customer interaction |
