Reshaping the Retail Landscape
Online companies are giving brick and mortar companies a run for their money. Not only can you oftentimes purchase items online for less, the QUALITY can also be better. A New York Times article states: there is a “consumer products revolution [happening] that would not have been possible without technology.”
Online distribution means that you can order your package and get it without leaving your house. Faster, better quality and cheaper? That is the consumer utopia isn’t it?
This challenge presents a problem for how giant brick and mortar companies market. Online companies market to us differently, and aren’t burdened by giant advertising and marketing budgets (think tv, billboards, magazine ads, etc.) So that means as consumers we are the winners.
Take mattress company Casper for example (one of the Inc.com top companies for 2016). Without a brick and mortar store (and the costs associated with it), the company can focus its marketing dollars radio, online, social networks, Google ads, podcasts, and other online ads. Casper is on track to book $200 million in revenue over the next year, but BECAUSE it’s an online retailer, it is now facing competition from other online mattress companies.
It is clear the retail industry is at a crossroads…how do brick and mortar retailers continue to stay relevant to younger generations while online retailers balance marketplace competition to stay profitable?
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