News

How the relationship of sales channels is changing

The number of sales channels and their networking is constantly increasing. This also means the relationship of brands to stationary dealers, online dealers and marketplaces is changing. All those whose business does not involve selling products of everyday use will no longer be able to reach consumers without the Internet in future: 34 percent of the purchases in stationary trade take place after an information search on the Internet. These purchases correspond to 66 percent of the sales in stationary shops.

But how do I handle the individual channels and how do I approach them strategically? The sector is divided into two camps in this regard. One side wants to do away with the multichannel myth. These dealers view the online channel isolated as a separate profit center. The other side wants to develop online journeys for multichannel dealers so the customer is served at all touch points in the best possible way. There are advocates of both positions especially in the fashion segment. Some set up their own online shop within the channel mix as a separate outlet intended to contribute to increasing sales: a concept similar to Zalando. Others have only one commerce strategy for the stationary, online and print segment. They want to collect their customers at every touch point. 

A frequent dilemma: if a manufacturer opts for online direct selling, there is an outcry from the stationary trade almost as a reflex. This is then referred to as cannibalization of offline business by the online trade. Studies refute this argument to a great extent, however. In the end the stationary trade profits from online trade since customers are more aware of the brand.

Less and less channel loyalty among buyers

... and this applies increasingly, even during a single purchase process. Nowadays potential buyers frequently compare the prices of online providers to those of the stationary trade right at the POS using their smartphones. When shopping online, customers also find it nicer not having to stand in a line and having the products delivered to their home. They can compare more easily on the Internet and feel more secure about their purchase after getting detailed information and reading test reports.

Integration is faster online than at a retailer

As far as returns are concerned, expert opinions also differ. The only thing they agree on is that the problem is not of a technical nature, but strategic and has to be solved case by case. Numerous dealers, particularly in the fashion sector, already offer the option of returning goods ordered online to the stationary shop.

“Most stores are not adequately prepared for the principle “Order online, pick up at the sales outlet” in terms of logistics, area and staff,” Thorben Fasching curbs expectations: “Today mail order articles still have to be returned inconveniently via local post office branches or parcel shops.”

“In big cities, however, at least deliveries on the same day will become standard in a few years,” Fasching is convinced: “Customers and manufacturers of branded goods demand this service from the retail trade. Particularly young and innovative brands will focus even more on the service aspect in the future in order to distinguish themselves from the competition.” A current example is the Relation Browser provided by electronics store Saturn. Customers can exchange goods ordered at the recently launched Web shop at the 144 German outlets. The e-commerce late starter sees this as a way of offering added value in comparison to competitors like Amazon.

Multichannel shoppers gaining ground

A good place for observing how the relationship between brands and sales channels will develop is the mobile segment. Mobile services as a sales channel attain such minimal shares that they alone do not pay off at the moment. If, however, they are integrated into the purchase process in such a way that customers receive added value (service, information, customer loyalty), they enhance the buying experience overall and thus provide for more satisfied customers and thus more sales. Such expectations are rising on the customer side.

*Source: iBusiness