Taking the Leap: How to Venture from e-Commerce to Brick & Mortar
The good news? Your business has grown in leaps and bounds. Maybe it’s attributable to your fabulous online social media marketing efforts. Or, you found fame and glory because supply chain issues had shoppers seeking and switching to other brands that were immediately available. Whatever reason, it’s all good. So, yay! And lucky you! And now you’re setting your sights on even greater adventures and growth, and thinking of taking your brand to other channels — like expanding into physical retail.
What is the bad news? You have a lot of company in so many other online brands who also got attention for the same reasons. And now they have the same aspirations as you.
And now, as you contemplate the next phase of your brand’s growth, considering physical retail as the next logical step in your sales strategy, there are a lot of other new brands that are also plotting their debut. In fact, you might be faced with even more competition in physical retail than you initially experienced in your online startup.
Yes, the time is ripe for getting into brick-and-mortar retail for many reasons, but one of those reasons has to do with retailers making changes in their product assortments. Due to economic uncertainty and increased import costs, shoppers’ have shown a willingness to switch to lesser-known brands. And subsequently, Big Box retailers quickly experienced an uptick in demand for these brands.
Loyalty, out. Accessibility and discovery, in.
Welcome to recession pragmatism, where brand loyalty gives way to accessibility and affordability. And in turn, this leads to discovery for many shoppers while in-store.
As a result, retailers are quickly coming to understand that giving shoppers choices could be a point of differentiation for them in getting consumers to shop their store over others. They learned that it wasn’t just about filling the consumer’s pantry but about providing a diversity of product choices, boosting the curiosity of the digitally burned-out shopper — as in, “what other discovery will I make in-store the next time I visit?” And this could push the message that their physical retail is the place to come for just that type of experience. Experts at this hunting game — like T.J. Maxx or Aldi — understand this strategy through and through.
Certainly, this newfound interest by retailers in bringing lesser-known brands in-store sets up for an ideal situation for those brands ready to take the next step. How much better can it get? You want to be on their shelves, and they want you there too. Right?
Well, yes. But nothing is ever as easy as it looks.
Physical retail is a lot like dating
For one, as I mentioned earlier, as an e-commerce brand you now have a lot of competition with others trying to do the same thing you are: expand into physical retail.
And two, if you think that you’re going to breeze right in and get a seat at the adult table, think again. Getting in-store real estate means that you’re gonna need to woo a lot of buyers. Think of it like a dating experience: lots of judgment and a healthy number of rejections.
Okay, I know that doesn’t sound particularly fun. Because your online experience up to now has been something that you had some sort of control over — when and where you wanted to be, and how much you were willing to spend in getting there.
Now? Someone else will be making those calls. And you’re going to need to convince those gatekeepers that you are right for them and belong in their store. That you will help drive engagement down the aisles and dollars into their registers.
Will it be challenging? Yes. Is it doable? It is.
But just like with dating, you’re going to need to work at it. Because it’s not just about the wonderfulness you think you can bring to the retailer’s store — it’s also very much about what you look like. Yes, even on shelves, looks do matter. And remember, with all the competition you now have trying to get in-store, you won’t be the only one pitching, “I’m the one!” And it will be the store buyers who will want to know what you can deliver over the 20 or more brands waiting out in the lobby, right behind you.
You’re going to need to up your game and your wow factor when you finally land that first date and meet store buyers. And like speed dating, you’re going to need to impress immediately and own that room as soon as you walk in.
A whole new ball game
Yes — you’ve had success and it’s clear that your product has something to offer, as your social media sales took off. But, make no mistake, physical retail and your exposure to a new audience in this new environment is going to be different, much different, in fact, than your online experience. Why?
Well, to start, unlike online where your potential buyers view your ads because you’ve paid to have your brand shown on their feed, in-store is more like a chance meeting. The shopper may be looking for something, but they’re not keying in a search query that delivers your product in front of them. In physical retail they’re walking down an aisle, maybe not even thinking that they need what you’re selling and then suddenly, there you are (cue the dramatic music). Ta-da!
But what happens after this?
Well, it’s anyone’s guess. But we believe that if you’ve done your due diligence and made the effort to be where your targeted consumer shops and visually give them something compelling enough to cause a closer inspection of you, then it’s the most ideal situation you could ever hope for.
Because your product is right there in front of them. To touch. To feel. To smell. To try on. No swiping to another page to order the product, and then having to type in all of their payment information. Then wait two or three days for their delivery to arrive.
Physical retail has an immediate advantage over the online experience: it’s called instant gratification. Grab it and go.
Now, arguably, getting attention and the sale does have its challenges, especially in-store, as you aren’t alone on the shelves. There are thousands of SKUs around you, and everyone is trying to do the same thing as you are. You’ll need to convince that shopper that you’re the brand they’re taking home.
Will it be worth your investment to do all that you can to get in-store?
Undoubtedly, YES. Because once you’re there, there’s a distinct chance that no matter what causes the shopper to go into physical retail, even if they’re not looking for you specifically, you now have a daily opportunity to convert that shopper and any shopper, for that matter, who ventures in-store. And that’s the beauty of being in-store. The chance to expose your brand to new audiences, to grow your brand.
Preparing for the entry (and romancing the buyers)
An insightful article in Entrepreneur.com lays out several things to keep in mind when considering venturing into physical retail. Here are a few.
- Begin with questions. Before you try to make the leap to multi-unit retail, assess your situation with these basic questions:
- Does your product fit a demand just waiting to be tapped?
- Have you already found a multi-unit retailer that’s a good fit for your product?
- What is it about your product that would make a buyer see fit to take a chance on your product?
- If you land the deal, can your production handle the volume?
- Do you want to sell your product directly to the retailer, or do you want to license your product to a manufacturer who’ll then distribute it for you?
- Look for the right store. A search for the best retailer for your product starts with you browsing stores for similar or related products. Spend some time in local retail stores to see what’s on the shelves. Picture where in the store your product would sit on the shelf and keep that in mind when it comes time to approach the store’s buyer and make your presentation.
- Convey your passion. When presenting to the buyers, make sure to communicate your commitment to product marketing. Retailers are always willing to consider brands that will support and enhance their in-store marketing efforts. They want in-store demos, point-of-sale displays, advertising and promotion – they want any type of support you can give.
So having a full story on how desirable your product is, complete with the data you’ve collected from your online sales to back up the claim, and then punctuating it by how you will enhance the in-store CX is an absolute must to get buyers’ attention.
Don’t tell. Show.
But you can’t only talk about your product, you’re going to need to show the product. And by that, I mean you’re going to need to give the buyers a sense of what your product display might look like in-store. And this might mean having a prototype of your product display in the ready, to help bring your pitch to life.
It’s not just about telling your story. It’s nailing the physical presentation of that story that’s going to be critical, especially to those buyers. And your point-of-purchase display is your story.
While you can’t always know going into a pitch meeting,where your positioning in-store might be with that retailer, you should definitely give serious thought to creating something visual that buyers (and shoppers) can quickly connect with. Of course, the display you start with might go through several iterations over time as you move from retailer to retailer in your pitch, each time adjusting to the preferences of that retailer. To be fully prepared you’ll need to have a starting point for your POP — Something that has the potential of expanding or contracting without sacrificing selling power.
So, whether you’re trying to romance a group of very picky buyers, or just determining a best approach to creating an engaging and action-inducing POP display, chances are you’re going to need to seek out a point-of-purchase display professional that will help bring your display to life.
With over 60 years experience, Medallion Retail has the expertise to ensure you put your best foot forward when pitching to retail buyers. Our proptype displays consistently seal the deal, and as your retail marketing partner we cannot help you with every iteration of your in-store marketing, from concept to the version that hits the stores. Contact us today to learn how we can make your transition from on-line to in-store a success.
