Introduction:
As we approach the brink of 2024, the once-clear line between online and offline realms is blurring. Companies, taking inspiration from giants like Alibaba and Amazon, are successfully transitioning from the digital to the physical world. In the past year, Global Relax, following this trend, has opened four establishments in Spain, underscoring the relevance of physical stores in the era of omnichannel commerce.
Unique Challenges and Strategic Shift:
Global Relax faces unique challenges in this transition, including training for in-person sales, implementing alternative payment methods, and developing specific promotion strategies for the physical environment. However, the strategic shift towards physical retail is driven by several key reasons, offering valuable lessons for other digitally native brands considering a similar move.
- The Power of Personal Experiences in Physical Stores:
In a world saturated with digital transactions, physical stores provide an irreplaceable advantage: human-led personal service and in-person experiences. The contemporary consumer, seeking solace in moments rather than material possessions, finds refuge in the tangible and personal touch provided by brick-and-mortar retail.
Physical retail becomes a canvas for brands like Global Relax to showcase their identity through compelling storytelling and create a consumer-centric, experience-driven environment. For Global Relax, venturing offline is not merely about establishing a physical presence; it’s a commitment to delivering a high-end experience seamlessly complementing its digital offerings.
- Luxury and Tactile Experience as Distinguishing Factors:
Global Relax’s strategy aligns with the reality that, despite online research, a significant portion of high-value product sales still occurs in physical stores. Allowing customers to try products, especially high-value items like massage chairs, is crucial. This tactic not only alleviates consumer doubts but also enhances the luxury shopping experience, where in-store guidance becomes pivotal. Global Relax transforms its product range into unique experiences that transcend mere transactions.
- Generating New Revenue Streams and Increasing Web Traffic:
As digital-native brands mature, exploring new avenues for growth necessitates moving beyond an exclusively digital model. Global Relax’s expansion into physical retail represents a strategic move to explore new avenues of revenue. Reports indicate that physical stores enhance the online benefits for e-retailers, translating into increased net spending, heightened consumer trust, and more online brand mentions and searches.
A study by ICSC further highlights that opening a physical store can lead to a significant 45% increase in web traffic, showcasing the positive impact of offline presence on digital engagement and brand health.
- Fulfillment Centers and Improved Customer Experience:
For growing digitally native brands like Global Relax, a centralized and cohesive customer service strategy is paramount. As demand surges, maintaining optimal customer service becomes challenging. Many brands are transforming their physical stores into delivery channels, offering options like free in-store pickup for online orders to reduce shipping costs and enhance order fulfillment speed. Beyond transactions, local stores serve as convenient return centers, enhancing customer satisfaction.
- Consumer Data Acquisition and Deeper Brand Connections:
Investing in physical retail provides a goldmine of qualitative and quantitative consumer data. Direct in-store interactions allow brands to gather real-time feedback and foster deeper connections with customers. For digitally native brands, this means moving beyond the confines of online advertising to gain profound insights into consumer behavior.
In an era where competition intensifies, and the costs of acquiring digital customers rise, the offline realm becomes a valuable source of contextual data. This enables brands to personalize relationships with consumers in a more nuanced manner.
Global Relax’s Strategic Vision:
Global Relax’s foray into physical retail is a strategic response to evolving consumer preferences and market trends. The fusion of digital and physical commerce represents a new era in retail, transforming it into an experiential space immersing consumers in the brand culture.
Two crucial factors underline Global Relax’s success:
- Planning (developing a suitable pre-strategy).
- Patience (from deciding on store requirements – location, size, features) to choosing the methodology and seamlessly integrating it with the brand’s primary source: the online channel.
In collaboration with Innova Digital Export, we’ve worked closely with Global Relax, aiding them in planning their strategy and fostering growth over the years. Our partnership has enabled them to adapt and thrive in a constantly evolving market, effectively merging the online and offline worlds.
Beyond providing specialized tools and knowledge, we ensure each step of their expansion is measured and effective – from selecting store locations to integrating payment systems.
In conclusion, Global Relax’s experience demonstrates how digitally native brands can successfully expand into the physical space. By adopting an omnichannel approach, businesses not only enhance their reach and visibility but also enrich the customer experience. The future of retail undoubtedly lies in a harmonious blend of digital and physical, and Global Relax is paving the way with its innovative strategy.
