Published On: Thu, Oct 29th, 2020

Online Businesses Helps Bounce in Retail Sales but Stores will Start Earning Slowly

 

 

Online sales were already picking up around the globe and amidst that the pandemic happened. With that, the buying behavior and patterns of the consumers started changing. People started thinking that buying online for health products is safe because this can be done from home itself and this is the contactless way of buying things. Thus, these days have seen a good amount of momentum in online retail sales growth.

A few things you must note:

  • As per the statistics as available for online business growth, around 22 percent of people shop online. After the lock down, the consumers’ behavior has changed a lot and hence their dependence on online buying has increased. As per the experts, it is therefore expected that by 2021, the global retail sales growth online will be good enough and the sales figures might reach to $5 trillion.
  • The variety and options in digital payment options have contributed to the success of online stores and the online retail sales growth.
  • Due to the benefits that e commerce has been providing to the people, their dependence has already increased over the online options. The improved experiences and facilities that the consumers get might be responsible for this new online drive.

Is there a hope for Offline Retail Stores?

 

If you compare the retail sales growth and online sales growth then as per the data, you will realize that the retail industry sales growth is less and yes, it is declining. In one way, this is a matter of concern. If over a period of time, the retail offline sales doesn’t pick up then it would affect the bricks and mortar stores. They would have fixed overheads and very low income.

 

As a result, these stores that do not earn much would shut down. Of course, these results would be disastrous for the real estate sector too.  So, ideally if the retail stores follow a few features from the online sales business model then the chances of survival of the offline retail businesses would increase. Also people like to shop online more for products like furniture nowadays so there is no reason to hold back.

The points of discussion to show that there is still some hope for retail outlets:

  • The retail outlets will have to integrate new and advanced technology for their stores. They will have to adopt experiential approach and perhaps this might help the retail outlets in some ways.
  • Some customers want to feel and touch the products, and for them retail outlets are more real.
  • People who seek human interaction while shopping would not be satisfied with the online stores. They would love the social aspect of shopping and hence this factor too lays down the hope for offline retail stores.

The points of discussion that talk about the death of retail outlets

  • Looking into increased dependence on technology, the customers would remain happy with the online purchases. Thus, for this coming decade too, the online sales business model seems to be a hit one.
  • The AI and big data will take over the shopping space as well. Like, if the customer wants to buy a dress, then with AI there will be a perfect anticipation about the measurements, choice, suitable colors and the materials.  Thus, the online store would automatically know what the most suitable stuff is for the consumer. These factors would contribute to online business growth for the future.
  • AR and VR will make it possible to see the store items from the comfort of home. Thus, buying without visiting the store would be a convenient thing to do. The stores that would quickly get adapted to the new technologies would experience the retail sales growth. These kinds of stores can be created online and hence the need for bricks and mortar stores would decline.

 

With the above discussions, it is clear that the picture is still not clear that what the future holds when it comes to global retail sales growth. But yes, the retail stores that are flexible enough and are ready to change with time, will be able to fetch some benefits.

The current situation supports online shopping because of the benefits it offers

Considering the online retail sales growth many offline outlets also are attracted towards joining the bandwagon for small business online sales. These stores are ready to make the relevant changes in the way they sell things and thus, wish to offer the customers with the best experience and deals too.

If an offline store wants retail sales growth then it should study the online sales business model and come up with a few potent changes as per the demand of time.  Even for a small business online sales would be possible if the outlet comes up with some best offers that the customers would crave for.

With the online business growth there has been a downtrend in retail industry sales growth and perhaps that is an alarm for the offline retail outlets that they should respect the times and come up with the relevant strategies to boost the retail industry sales growth. If collective steps are taken then there would be a positive effect on global retail sales growth.

When the retail outlets want to get ahead with the online platform, they would come across a lot of challenges.  But once things are at place, marketing the business online will fetch a lot of benefits. With online retail sales growth through various marketing platforms like social media marketing, optimizing the online store well, providing the best user experience and so on, there would be long term results that one can expect.

E Commerce is growing very fast and the consumers have already started liking the way it provides convenience, safety and the multiple payment options. But this particularly doesn’t mean the death of retail outlets.  At this point, a pandemic situation prevails and thus online shopping seems to be rising. But, when things settle down and the situations are normal, people might again demand social interaction and for that reason, the hope for offline retail outlets doesn’t become dim as such. But to match up with the online stores, these offline outlets should now take a few steps which can help in at least surviving.

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