Book review/summary: the end of traditional retail stores
The end of traditional retail stores : www.eindevandewinkel.nl by Cor Molenaar.
I found this book (although most is obvious for me) interesting and easy to read. Especially because many improvements that Mr Molenaar suggests, already are common in many other countries (e.g. Asia or the USA). I have seen a lot of examples Cor Molenaar describes in his book, during my recent travels.
It seems like we (in Holland) are running behind.
What are the dangers for traditional retailing?
Internet: is a threat to traditional retail because, traditional retail has to compete against unknown competitors and competitors who have less limitations like shop opening hours and location.
Wholesalers/suppliers who are going to sell at the web: for example big brands are starting their own webshops to get into contact with customers.
Customers: have a new way of buying and internet is integrated in this shopping process.
Grocery's are still bought locally and often in traditional shops, emotional shopping also still takes place in traditional retail, but more and more people buy specific products via internet. Think about books, music, clothing etc. Also a trend is that big web shops are more and more opening physical stores.
New buying behavior: "information" is being de-attached from buying. A good example is the travel business.
What kind of shopping can we define :
- Shopping 1.0 - traditional retailing, personal contact with customers.
- Shopping 2.0 - (mail order for example) there is no personal contact with customers.
- Shopping 3.0 - the new shopping is centralized around the customer.
- The limited shopping hours (most shops are open only 54 hours a week
- The absence of big shopping malls with plenty of parking space
- The extreme costs of parking
- The unfriendliness of shop staff
- The lack of making shopping "fun"
- The high costs of shop rental (is getting more difficult since there will be less people visiting the shops in the traditional city centre's)
Yes mr Molenaar, Internet can really help traditional retailers with listening, and engaging with customers. Many chances here, for both big and small companies. They should start with a communication and engagement strategy. Use social media tools, use email, use special internet events, use a combination between online and offline (reviews printed on goods sold in the store for example) etc.
Use internet in the communication strategy of traditional retailers and learn and listen to your customer or prospects.
New chances and trendds for traditional retail:
- Shopping in "out of town" shopping malls
- Traditional shops in city center
- Orientation and information at the internet and then buying via internet or at the physical shop
- Service, advice, touching articles, take away immediately etc.
- Build relationships with customers and prospects.
Just like in the internet marketing, the important words for traditional retail are also: build a relationship/engagement.
- Limited radius
- Limited assortment
- Limited shopping hours
- Often no knowledge of individual customers
- No direct communication
- It takes time for customers
- Unlimited assortment
- Always open
- A lot of knowledge about customers
- Only direct communication
- People can shop when they want
What is not really mentioned in the book is the future of location based marketing. Signals or marketing messages people get, when they are near your store, or even more targeted, when they are near your store and most likely want to buy something you sell. This all based on information from social networks.
The book has much more chapters, especially about internet marketing, new business model's and case study's.Interesting for everybody to get some insight in the new way of retailing.