It can be tough to separate fast-burning fads from meaningful trends that deserve your attention. But while “phygital retail” might sound like a punchy buzzword invented by marketers, it accurately represents a new—and better—way to build a retail business.
Millennials aren’t kids anymore. The majority have entered the workforce, built careers, and pursued milestones such as marriage, home ownership, and starting a family. As a result, today’s millennials are a major force in retail, accounting for 30 percent of all retail sales in the United States.
Imagine a customer named Mary walks by your retail store on her way to work. She doesn’t have time to stop and shop, but a jacket in your storefront window catches her eye.
Direct-to-consumer (DTC) selling isn’t easy. It requires a lot of hard work in the marketing and messaging department and an uncompromising customer focus. Without the convenience of traditional distribution channels, DTC brands have to start from scratch. However, DTC continues to be a popular business model for new retail startups because it offers a number of unique advantages:
You can learn a lot by studying the businesses that break the mold of traditional retail. Although your own brand might not be one of the “retail unicorns” that have grown into billion-dollar businesses, you can still borrow a thing or two from the businesses that faced an uphill battle—and won.
Trader Joe’s isn’t your typical grocery store. Instead of offering a broad selection of items in a huge space, TJ’s curates its products carefully and makes them easy to find by keeping the store’s footprint small. And although many of the products are fairly standard, they’re presented in unique, branded packaging, and many products achieve cult status among customers.
Your customers want quick, responsive customer service. But the expectation of prompt customer engagement can be a burden on your limited resources.
Direct-to-consumer (DTC) brands like Glossier and Warby Parker have become huge success stories by going outside of traditional retail channels and focusing on online sales.
The retail world is changing fast, and it won’t slow down anytime soon. New technologies and shopping habits are challenging brands of all sizes to keep up with new customer expectations. The good news is that retail is still the place to be. In May 2019, U.S. retailers generated 3.1 percent year-over-year sales growth.
Today’s shoppers have more ways than ever before to shop their favorite brands. With so many channels at their fingertips, customers expect a higher level of choice, flexibility, and convenience, no matter where they shop.