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Retailers must stop feeling threatened by online

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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.

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Low-cost wireless sport earphones get a kickstart

Wireless earphone brands are common, but not crowdfunded brands. BRYAN TURNER takes the K Sport Wireless for a run.

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As wireless technology becomes better, Bluetooth earphones have become popular in the consumer market. KuaiFit aspires to make them even more accessible to more people through a cheaper, quality product, by selling the K Sport Wireless Earphones directly from its Kickstarter page

KuaiFit has an app by the same name which offers voice-guided personal training services in almost every type of exercise, from cardio to weight-lifting. A vast range of connectivity to third-party sensors is available, like heart rate sensors and GPS devices, which work well with guided coaching. 

The app starts off with selecting a fitness level: beginner, intermediate and advanced. Thereafter, one has the ability to connect with real personal trainers via a subscription to its paid service. The subscription comes free for 6 months with the earphones, and R30 per month thereafter. 

The box includes a manual, a USB to two USB Type B connectors, different sized soft plastic eartips and the two earphone units. Each earphone is wireless and connects to the other independently of wires. This puts the K Sport Wireless in the realm of the Apple Earpods in terms of connection style. 

The earphones are just over 2cm wide and 2cm high. The set is black with a light blue KuaiFit logo on the earphone’s button. 

The button functions as an on/off switch when long-pressed and a play/pause button when quick-pressed. The dual-button set-up is convenient in everyday use, allowing for playback control depending on which hand is free. Two connectivity modes are available, single earphone mode or dual earphone mode. The dual earphone mode intelligently connects the second earphone and syncs stereo audio a few seconds after powering on. 

In terms of connectivity, the earphones are Bluetooth 4.1 with a massive 10-meter range, provided there are no obstacles between the device and the earphones. While it’s not Bluetooth 5, it still falls into the Bluetooth Low Energy connection category, meaning that the smartphone’s battery won’t be drastically affected by a consistent connection to the earphones. The batteries within the earphones aren’t specifically listed but last anywhere between 3 and 6 hours, depending on the mode. 

Audio quality is surprisingly good for earphones at this price point. The headset style is restricted to in-ear due to its small design and probable usage in movement-intensive activities. As a result, one has to be very careful how one puts these earphones, in because bass has the potential of getting reduced from an incorrect in-ear placement. In-ear earphones are usually notorious for ear discomfort and suction pain after extended usage. These earphones are one of the very few in this price range that are comfortable and don’t cause discomfort. The good quality of the soft plastic ear tip is definitely a factor in the high level of comfort of the in-ear earphone experience.

Overall, the K Sport Wireless earphones are great considering the sound quality and the low price: US$30 on Kickstarter.

Find them on Kickstarter here.

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Taxify enters Google Maps

A recent update to Taxify now uses Google Maps which allows users to identify their drivers, find public transport and search for billing options.

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People planning their travel routes using Google Maps will now see a Taxify icon in the app, in addition to the familiar car, public transport, walking and billing options.

Taxify started operating in South Africa in 2016 and as of October 2018 operates in seven South African cities – Johannesburg, Ekurhuleni, Tshwane, Cape Town, Durban, Port Elizabeth and Polokwane.

Once riders have searched for their destination and asked the app for directions, Google Maps shares the proximity of cars on the Taxify platform, as well as an estimated fare for the trip.

If users see that taking the Taxify option is their best bet, they can simply tap on the ‘Open app’ icon, to complete the process of booking the ride. Customers without the app on their device will be prompted to install Taxify first.

This integration makes it possible for users to evaluate which of the private, public or e-hailing modes of transport are most time-efficient and cost-effective.

“This integration with Google Maps makes it so much easier for users to choose the best way to move around their city,” says Gareth Taylor, Taxify’s country manager for South Africa. “They’ll have quick comparisons between estimated arrival times for the different modes of transport, as well as fares they can expect to pay, which will help save both time and money,” he added.

Taxify rides in Google Maps are rolling out globally today and will be available in more than 15 countries, with South Africa being one of the first countries to benefit from this convenient service.

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