Tuesday, October 08, 2013

The rise of showrooming

Consumers are increasingly using stores not to buy their products, but to interface with the products they are considering on buying; they are comparison shopping. In the stores consumers are asking questions, trying to understand the different options and models available to them, using or playing with the potential products before checking on their mobile phone or tablet to see if they can get that item cheaper on-line. The best example being Best-Buy or any other tech product store which basically becomes a showroom for Amazon.

As showrooming increases (JiWire’s Mobile Audience Insights Report for Q2 2013 suggests that there has been a 25% increase) what can the Best-Buy’s of this world do to ensure that customers purchase from them (either in the store or online) apart from offering competing prices to the likes of Amazon? One lobby option is to persuade the manufacturers not to sell to companies which undercut as Target did when it wrote a letter to its vendors saying it was unwilling to be a showroom and would not carry products which the Vendors then sold online at a lower price.

If a customer wants to buy a product on line; one route would be for the store to offer a discounted price, longer warranty, a free special offer such as a camera case if the consumer purchases that product either in the store, or online whilst in the store. Using locational software, companies can potentially advertise special offers to consumers whilst they are in the store hoping to encourage them to buy there and then.
According to a blog on econsultancy one shoe firm was doing this whereby shoppers were offered a 99% discount which was reduced by 1% every second in an effort to encourage fast purchases.


 These retail stores should be encouraging consumers to check their apps whilst in their stores to try and bring both the store environment and the comparison or research shopping experience together.

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