OMNICHANNEL Omnichannel future: the integration between online and offline

OMNICHANNEL

Omnichannel future: the integration between online and offline

By Matteo Melani

With the outbreak of the pandemic, all our habits changed and of course, retail was also affected. Firstly with the closure of shops, then with the consequent decrease in sales and, over recent months, with the new anti-contagion products for customers.

How do we deal with this big change? What methods can guarantee success despite the stalemate? While it is true that in-store sales have dropped, online purchases have also seen a large increase. According to an ISTAT study, in the first seven months of 2020, retail sales decreased overall by 8.5 per cent compared to the same period in 2019, while online business recorded a 28.5 per cent growth. These statistics show that in the current market, in order to be competitive, retailers must implement an omnichannel strategy with the key focus on digital. Several brands have used the lockdown period to change their strategies, replicating the e-commerce platform as much as possible with the physical store. Like La Rinascente, which has expanded its online commercial offer with 600 brands and 1500 products.

“This initiative,” explains the company, “represents a new and important piece of La Rinascente’s omnichannel strategy, aimed at providing a multi

channel experience. We wanted a site that replicates, as far as possible, the experience and entertainment that can normally be found in our physical stores. All mobile friendly”. La Rinascente’s strategy did not stop at simply displaying products online, but also combining elements concerning logistics and customer loyalty. By ordering on the site customers are offered free shipping throughout Italy for orders over €30 as well as free returns. Through the Click&Collect option, there is also the option of withdrawal of the product ordered from a store, along with express delivery options. A 20 per cent discount is also available for holders of the Friends Card on the online store. In short, a mix of innovation and tradition which guarantees

customer satisfaction and enhances the retail experience through ad hoc services. Offline and online are no longer two separate worlds, but two sales systems which work together to create added value to brands. The first step to implement a winning omnichannel strategy is to understand the needs of customers, guaranteeing an offering which meets their needs. An initiative which does exactly that, is Virtual Artist, developed by Sephora. Products can be tried on using the virtual reality, shoppers can then choose their favourites and order. As for the availability of products, an adequate assortment must be guaranteed to avoid selling out. An example of this is the O2O project (online to offline) implemented by Intimissimi, allowing a fluid and quick purchase process of online products. With O2O it will be possible to purchase the desired products online within the 1,029 stores involved, of which over 650 in Italy, by enlisting the help of a sales assistant and obtaining the advantage of a widened range and faster delivery times. The service is already active in Italy, Austria, Germany, France, Spain and Portugal. In the coming months, Poland, Belgium and the Slovak Republic will also be added, with the aim of including all 25 markets where the Intimissimi brand is present. Until a few years ago click and collect was a tool used only by a few, but today it has become fundamental for retailers’ omnichannel strategies. According to a survey by CBRE, the largest real estate consultancy company in the world, click and collect remains the most requested service by customers in shopping centers. In fact, during the re-opening period following lockdown, many customers collected the product in the store rather than at home. Each strategy must be accompanied by a strong advertising campaign in which online and offline are equally involved. To encourage consumers to visit physical shops, retailers can use social networks such as Instagram or Facebook to communicate the latest arrivals, discount opportunities such as Black Friday and, as many do, introduce the staff.

Another widely used method is email marketing to inform customers about the store’s activities, experiences, news and growth. In-store, it may be useful to put up signs inviting customers to sign up to a loyalty card or to indicate the brand’s website as H&M does. So it seems the future of omnichannel has already begun in earnest and the interaction between physical and digital stores requires an ever closer relationship.