Retailers threatened by online competitors are distracted from the truth that consumers are just consumers and should be treated the same, regardless of where they are shopping, writes SIMON VAN DER MERWE, Head of corporate and trade business at weFix.
Headlines like these appear regularly in the South African business and trade press: “Online shopping blasting holes in traditional retailer profits” and “Retailers acknowledge the threat of online retail on physical stores”.
Statistics tell a different story.
According to World Wide Worx, it was only in 2016 that online retail sales made just a 1 percent dent in overall retail sales. Last year, Effective Measure’s E-Commerce Industry report noted that more than half of respondents had still not purchased anything online.
Then, just-released Statistics SA Retail Trade Sales figures show a 5,3 percent increase year-on-year in December 2017, with an overall increase of 3 percent in 2017 compared to 2016.
In November last year – the month of Black Friday, Small Business Saturday and Cyber Monday, neatly packaged by some as Black Friday weekend – Stats SA recorded the highest retail trade sales figures in the second half of 2017.
The irony is, of course, that these massive sales originated online in the United States and have only recently seeped into local brick-and-mortar stores looking to cash in on the pre-festive-season-shopping extravaganza.
By my estimation, traditional retail is as alive and well as it can be given the ongoing economic and political uncertainty that was South Africa’s reality last year.
Still, this is no reason for brick-and-mortar retailers to be complacent.
After all, a third of Effective Measure’s respondents shop online between once a month and once a week, and another third are shopping online more frequently than they did the previous year.
My advice to brick-and-mortar retailers, the cornerstone of our weFix footprint and therefore a cornerstone of our strategy, is to leverage the many ways that online stores will never be able to compete with ‘real-life shops’.
- Customer service from real people still has an edge – invest in sufficient staff on the floor, train them properly, and select personnel with engaging personalities.
- Online stores do not have passing foot traffic – sure, visitors may stumble across the online store while browsing the web (and a site’s design should certainly be as enticing to these users as possible), but this traffic is arguably less focused and of less volume than customers ‘captured’ in a shopping mall or other retail space. Take advantage of this fact by making it easy for customers to visit you. In other words, select your store location and décor very carefully.
- Bring your brand to life for all five senses – granted, it can cost more to invest in bricks-and-mortar store space and inventory, depending on the sophistication of a competing online store. However, it is so much easier to create a unique, holistic, creative brand and shopping experience in the physical world and this is something that retailers should take advantage of when design their spaces, planning inventory etc.
A final statistic worth reflecting on – again from Effective Measure – is that 30 percent of respondents report that they often browse in-store before making a purchase online. By contrast, 28 percent browse online, then purchase in-store.
I believe this reflects the trend towards online and offline shopping becoming just shopping.
A local brand that is recognising the need to unify channels, rather than separate them, is local ecommerce darling YuppieChef. In October last year the company opened a bricks-and-mortar store in Cape Town’s Willowbridge Mall.
Designed by well-regarded interior design company ARRCC, this is a far fancier retail experience than the space from which one could previously collect orders ordered online.
Our approach has been focusing on partnerships with mobile device brands, insurance companies and other machine manufacturers. weFix originally worked only with Apple devices, but we have since added Samsung, LG and Huawei to the suite of mobile devices that we repair, as well as Yoco wireless card machines and DJI drones.
No longer are we merely a repair shop – we operate sophisticated technician-staffed labs in Cape Town and Johannesburg, supported by a robust framework to manage large corporate trade volume for the likes of FNB and Energizer.
It will be interesting to see how the imminent 1% VAT increase (South Africa’s first since 1993) and increased luxury goods taxes which we anticipate will affect at least some mobile devices, will affect the retail trade sales figures in the coming months. I suspect that the upward trajectory will continue, even if at a somewhat more modest pace.
Ultimately, I don’t believe that retailers are facing an online vs offline battle at all – we’re battling for consumers, period.
Our challenge is to integrate the best of both worlds into our business models.
Now download a bank account
Absa has introduced an end-to-end account opening for new customers, through the Absa Banking App, which can be downloaded from the Android and Apple app stores. This follows the launch of the world first ChatBanking on WhatsApp service.
This “download your account” feature enables new customers to Absa, to open a Cheque account, order their card and start transacting on the Absa Banking App, all within minutes, from anywhere and at any time, by downloading it from the App stores.
“Overall, this new capability is not only expected to enhance the customer’s digital experience, but we expect to leverage this in our branches, bringing digital experiences to the branch environment and making it easier for our customers to join and bank with us regardless of where they may be,” says Aupa Monyatsi, Managing Executive for Virtual Channels at Absa Retail & Business Banking.
“With this innovation comes the need to ensure that the security of our customers is at the heart of our digital experience, this is why the digital onboarding experience for this feature includes a high-quality facial matching check with the Department of Home Affairs to verify the customer’s identity, ensuring that we have the most up to date information of our clients. Security is supremely important for us.”
The new version of the Absa Banking App is now available in the Apple and Android App stores, and anyone with a South African ID can become an Absa customer, by following these simple steps:
- Download the Absa App
- Choose the account you would like to open
- Tell us who you are
- To keep you safe, we will verify your cell phone number
- Take a selfie, and we will do facial matching with the Department of Home Affairs to confirm you are who you say you are
- Tell us where you live
- Let us know what you do for a living and your income
- Click Apply.
How we use phones to avoid human contact
A recent study by Kaspersky Lab has found that 75% of people pick up their connected device to avoid conversing with another human being.
Connected devices are becoming essential to keeping people in contact with each other, but for many they are also a much-needed comfort blanket in a variety of social situations when they do not want to interact with others. A recent survey from Kaspersky Lab has confirmed this trend in behaviour after three-quarters of people (75%) admitted they use a device to pretend to be busy when they don’t want to talk to someone else, showing the importance of keeping connected devices protected under all circumstances.
Imagine you’ve arrived at a bar and you’re waiting for your date. The bar is busy, and people are chatting all around you. What do you do now? Strike up a conversation with someone you don’t know? Grab your phone from your pocket or handbag until your date arrives to keep yourself busy? Why talk to humans or even make eye-contact with someone else when you can stare at your connected device instead?
The truth is, our use of devices is making it much easier to avoid small talk or even be polite to those around us, and new Kaspersky Lab research has found that 72% of people use one when they do not know what to do in a social situation. They are also the ‘go-to’ distraction for people even when they aren’t trying to look busy or avoid someone’s eye. 46% of people admit to using a device just to kill time every day and 44% use it as a daily distraction.
In addition to just being a distraction, devices are also a lifeline to those who would rather not talk directly to another person in day-to-day situations, to complete essential tasks. In fact, nearly a third (31%) of people would prefer to carry out tasks such as ordering a taxi or finding directions to where they need to go via a website and an app, because they find it an easier experience than speaking with another person.
Whether they are helping us avoid direct contact or filling a void in our daily lives, our constant reliance on devices has become a cause for panic when they become unusable. A third (34%) of people worry that they will not be able to entertain themselves if they cannot access a connected device. 12% are even concerned that they won’t be able to pretend to be busy if their device is out of action.
Dmitry Aleshin, VP for Product Marketing, Kaspersky Lab said, “The reliance on connected devices is impacting us in more ways than we could have ever expected. There is no doubt that being connected gives us the freedom to make modern life easier, but devices are also vital to help people get through different and difficult social situations. No matter what your ‘connection crutch’ is, it is essential to make sure your device is online and available when you need it most.”
To ensure your device lifeline is always there and in top health – no matter what the reason or situation – Kaspersky Security Cloud keeps your connection safe and secure:
· I want to use my device while waiting for a friend – is it secure to access the bar’s Wi-Fi?
With Kaspersky Security Cloud, devices are protected against network threats, even if the user needs to use insecure public Wi-Fi hotspots. This is done through transferring data via an encrypted channel to ensure personal data safety, so users’ devices are protected on any connection.
· Oh no! I’m bored but my phone’s battery is getting low – what am I going to do?
Users can track their battery level thanks to a countdown of how many minutes are left until their device shuts down in the Kaspersky Security Cloud interface. There is also a wide-range of portable power supplies available to keep device batteries charged while on-the-go.
· I’ve lost my phone! How will I keep myself entertained now?
Should the unthinkable happen and you lose or have your phone stolen, Kaspersky Security Cloud can track and protect your device from data breaches, for complete peace of mind. Remote lock and locate features ensure your device remains secure until you are reunited.