To OMNI or not to OMNI?
Elena Kirioukhina
Independent Consultant - Retail/Wholesale at Openstyle Consulting
A store's integration within a true omnichannel experience is critical. About 6 years ago every department store in the US implemented OMNI and made it the way to do business. Basically, customers can purchase any items at any time of the day (or night) in-store, web, curbside pickup, phone. Logistically this is brilliant. Stores consolidated buying power: less expensive, one buying office, ability to transfer merch from stores to online and vis versa. The question that always interested me: how do this affects clients' behavior in terms of visiting stores?
Why? Because I like to look at the actual facts, not what theoretics of the fashion business is describing, a lot of "gurus" have never sold a piece (to an actual client) in their life. I started with myself. I like the Russian grocery store in Brooklyn and about ones a month I would go there to buy things. Recently I discovered that the store is delivering to Manhattan. I have never looked back. The result: I buy less because there are no "discovery" purchases, just what I need. Exactly the same is happening with OMNI buying. Let's face it, clients rarely buy unknown brands online, they don't know the fit, fabrics and, even though the returns are free, no one wants to bother.
When I worked for a designer brand, I would call sales associates every time store would have a new delivery and ask for the clients' reactions. Often they'd respond: "I call my customers, but everything is available online, they buy it there". Of course, this is still great for the company, clients are shopping. Let's look at this purchase: client buy, let's say" 5 pc, merchandise arrives and she/he doesn't like the way it fits, or the fabric, or the color (not always the same in real life), returns 3 out of 5 and call it a day. Plus Google algorithm will give these clients more items from the same brand and clients might migrate somewhere else, to the different sites. This is impossible to happen when a client is in the store: Yes, clients can return because of buying remorse but not much because of anything else. Plus, no walking through the store and discovering new brands (important for growing new businesses).
What needs to be done: in my opinion, 50 % of the buy needs to be exclusive to the stores, merchandising for online presentations should not be exactly the same as in the stores, there must be "special" pieces, that are only can be available in the stores. And companies need to advertise the exclusive store's assortment. Otherwise, people would stop coming to the store, period. The web is more convenient. This suggestion is only for companies with physical stores, still, 80% of the business is done there.