STAR event was held to give an appreciation for top 50 Samsung's Handphone Retailers across Indonesia. Spire, along with Google and Kadence, was invited to STAR event to share their knowledge and applicable strategy to improve offline handphone retail business. Spire Indonesia Senior Manager, Albertus Edy shared the importance of offline to online (omni-channel) strategy to the retailers.
He said the online retailing has not completely shift the purchase behaviour, since most of the purchase activities are still found in offline retail stores. However, business adaptation to bring multi-channel experiences would be a significant advantage in current competition. Available at anywhere and accessible at anytime are the concept of Omni-channel that is urgently required.
3. In Omni-channel strategy, the divisions between channels
disappear altogether. Multiple channels are merged and
meshed in the customer experience – not just the
online/offline divide
Merging of retail and
customer transactions
Multi-channel
presence
Targeted
communication to
customers, across
multiple mediums
Uniform pricing,
ranging, branding and
service standards
across all channels
Wealth of information
available to retailer and
shoppers
4. The goal of online-to-offline commerce is to create product and
service awareness online, allowing potential customers to
research different offerings and then visit the store to make a purchase
It is projected that more than 80% of retail sales will still happen at
physical locations in 2020. And despite the best efforts of e-commerce
sites, only around 8% of retail sales currently happen online.
The regular brands were about creating ‘pull’, and store
brands could be about creating ‘push’. And the store brands
could be priced much lower because there would be no advertising and
other associated brand building costs.
CONSIDERATION TO CREATE
ONLINE AND OFFLINE AWARENESS
5. INDOESPORTS collaborated
with Pasar idEA through
INDOESPORTS BATTLEFIELD
program.
The Program held in Pasar
IDEA event / exhibition in
Jakarta Convention Center
(JCC) Senayan, Hall B,
Jakarta, 15-18 August 2019.
Pasar idEA 2019 is the first event initiated by idEA as a bridge for
e-commerce to directly meet their consumers (offline), and bring
the inspiring experience.
THE DIRECTION OF ONLINE AND OFFLINE COLLABORATION IS
BEING BROADCASTED IN NATIONAL SCOPE
6. Shipping times and delivery
logistics remain as a genuine
differentiator among ecommerce
companies
CURRENT TREND ON RETAIL & TRADING BUSINESS :
Easy Approach and Fast Response
More Storefront Apps means better
sales
Many major retailers have offered apps for
several years, and shoppers are already well-
accustomed to using dedicated storefront
apps to browse and shop from their mobile
devices
Need Faster Shipping and Better
Delivery Logistics
The Rise of ROPO
(Research Online, Purchase Offline)
71%
browse online all the time before
buying in-store21%
browse online some of the time
before they go to a physical store
VS
WebroomingShowrooming
consumers who researched online first
ended up spending 13% more in store
Driven largely by thrifty shoppers
and eagle-eyed bargain hunters
looking for the best possible deal
buy online pick up in store, ship-from-store,
express shipping, and easy return are all growing
trends taking over the ecommerce industry
7. Smarter Payment Processing
The payment process is the final step
in the customer journey, and it is a
vital stage that could make or break a
conversion
CURRENT TREND ON RETAIL & TRADING BUSINESS :
Customer Centric Features and Services
Innovative checkout process is highly demanded,
retailers are realizing how crucial it is to deliver
fast and efficient online and in-store checkout
processes for their customers
Multi-Channel Selling
• People aren’t using just one channel to
make their purchases online, 85% of
online shoppers start a purchase on one
device and finish on another (Google)
Custom Packaging
• Customers tend to perceive packaging
as a part of the product
• According to a Dotcom Distribution
study, 68% of shoppers felt that a brand
became more upscale due to its
packaging
8. HOW FAR IS ACTUALLY THE ONLINE PURCHASE?
Offline stores still a consideration TO PURCHASE
65%
45%
78%
34%
6%
11%
0% 20% 40% 60% 80% 100%
Physical Store
Online Store
Amazon
eBay
Instagram
Facebook
Where have global consumers
purchase? (2018)
Inability to try /
touch product in
advance, 27%
Paying shipping
cost, 18%Waiting to receive
products, 15%
Difficulty of return
process, 12%
Site security
concern, 7%
Entering payment
and shipping
details, 5%
Out of Stock
products, 4%
Limited payment
options, 3%
What are the consideration (problem) of
making online purchase?
9. CASE STUDY
OFFLINE promotion
ONLINE transaction
ONLINE promotion
OFFLINE redemption
Generic ONLINE items,
OFFLINE merchandise
Selling OFFLINE products
through ONLINE platform
ONLINE purchase
OFFLINE pick up
ONLINE selection
OFFLINE purchase
10. OMNI-CHANNEL ECOMMERCE IMPACT
Compared to single-channel shoppers, retailers find that Omni-channel
consumers:
7% shoppers shopped
online exclusively
20% were store-only
shoppers
73% shoppers used
multiple channels
21%
28%
52%
25%
32%
43%
49%
36%
14%
0%
10%
20%
30%
40%
50%
60%
Once a week or more At least once a month,less
than once a week
Less than once a week
1-4 channels 5-9 channels 10+ channels
Omni-Channel impact to customer experience Survey: How often do you make purchases from your favorite
retailer’s website?
10% 30%
higher
lifetime
value
Higher spending
in an average
transaction
35%
Increase in
profitability due
to repeat visits
11. Tel: (62 21) 5794 5800
Fax: (62 21) 5794 5808
Wisma 46 Kota BNI,
25th Floor, Unit 07-09
Jalan Jendral Sudirman Kav 1
Jakarta 10220, Indonesia
indonesia.info@spireresearch.com
www.spireresearch.com
Editor's Notes
OMNI CHANNEL RETAILING INVOLVES:
Merging of retail and customer transactions (e.g. Social networking between retailers and their shoppers).
Multi-channel presence. Shoppers are able to freely move
between the retailer’s channels.
Targeted comms to customers, across multiple mediums.
Uniform pricing, ranging, branding and service standards across all channels.
Wealth of information available to retailer and shoppers
OMNI CHANNEL RETAILING INVOLVES:
Merging of retail and customer transactions (e.g. Social networking between retailers and their shoppers).
Multi-channel presence. Shoppers are able to freely move
between the retailer’s channels.
Targeted comms to customers, across multiple mediums.
Uniform pricing, ranging, branding and service standards across all channels.
Wealth of information available to retailer and shoppers
OMNI CHANNEL RETAILING INVOLVES:
Merging of retail and customer transactions (e.g. Social networking between retailers and their shoppers).
Multi-channel presence. Shoppers are able to freely move
between the retailer’s channels.
Targeted comms to customers, across multiple mediums.
Uniform pricing, ranging, branding and service standards across all channels.
Wealth of information available to retailer and shoppers
Tokopedia : Affiliated with ride hailing app to provide same day delivery
Elevania: Affiliated with minimarket chain to offer pick-up in store services
Zalora: Fashion ecommerce Offers yearly express delivery subscription
Contrary to the popular belief that omnichannel retail promotes “showrooming”, consumers who researched online first actually ended up spending 13% more in store. This practice of conducting research online before going into the store for a final evaluation and purchase is called “webrooming.”
Shopee diversify their payment method by affiliated with Indomaret and add COD feature
Traveloka offers “Pay later” feature
(Baymard Institute)
Omni-channel customers loved using the retailer’s touchpoints, in all sorts of combinations and places. Not only did they use smartphone apps to compare prices or download a coupon, but they were also avid users of in-store digital tools such as an interactive catalog, a price-checker, or a tablet
Recently, the Harvard Business Review studied 46,000 shoppers to gauge what impact (if any) omni-channel retailing had on their experience:
7% shopped online exclusively
20% were store-only shoppers
73% used multiple channels