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Servicing the hybrid consumer

Retailers must be visible both online and offline to keep ahead of consumers, says Flux Trends.

By Lwavela Jongilanga, Portals journalist
Johannesburg, 07 Jul 2014
Retailers must have connectivity on the most basic level like social media, and Web site offerings, says Flux Trends' Dion Chang.
Retailers must have connectivity on the most basic level like social media, and Web site offerings, says Flux Trends' Dion Chang.

Consumers are leading the retailers; this is problematic because retailers are not giving consumers what they want.

This according to Dion Chang, founder at Flux Trends, who notes that to service a hybrid customer is like having two companies at the same time because you've got to run a virtual and physical store, retailers are reluctant to service hybrid consumers who shop both online and offline because of this.

To Chang, even though bricks and mortar retailers have the advantage of impulse shopping. Retailers must to be visible both online and offline to keep ahead of consumers.

According to Chang, the number of online consumers is on the rise, meaning that the hybrid mentality is growing because more people are going online and offline all the time.

SA online consumers mainly buy apps, books, music, tickets electric devices and clothing.

He notes that 25% of South African online shoppers only made their first purchase less than a year ago. After five years of Internet use, respondents were 59% more likely to shop online - the more connectivity consumers get, the more likely they are to shop online.

Of those that did not shop online, concern regarding security was the primary reason given.

Retailers need to up the game in retail and have digital gimmicks; they must have connectivity on the most basic level like social media, and Web site offerings. "There are some restaurants that are tapping into tablets instead of menus, and when the customer is not sure what to have, a video is played to showcase how the potential dish is prepared. This is bridging the virtual and physical world," says Chang.

The future is getting more blurred and this is just the start of the hybrid consumer. The different shopping models like click and collect, showrooming and Web rooming all need to be explored because people are getting accustomed to such services.

"The model that has been very strong for me is the click and collect service, because of how people are so afraid of cyber crimes. I've seen it internationally, it's not so prevalent here but some stores have a completely different section for click and collect customers."

Click and collect follows Web rooming - a trend whereby the consumer does comparative shopping online. South African consumers are comfortable with this kind of shopping. Click and collect and showrooming will play a major role in South African retail due to how weary and cynical South Africans are about cyber security. This model allows consumers to research the product and make the final purchase in a physical store.

Most of the customer relationship work happens privately, and that creates the opportunity for retailers to place as much information about the product in cyberspace.

"Servicing the hybrid consumer is enviable for retailers but for me it's almost inevitable with the way that retail is going," Chang concludes.

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