5 things you need to know before setting up a phygital store
In today’s world, customers are increasingly looking for a seamless shopping experience across physical and digital channels. More flexibility leads to a better customer experience, higher sales, and increased brand loyalty; hence merging is essential. The touch and feel of physical shopping are amalgamated with the ease and habit of online shopping to provide instant gratification to shoppers.
Brands like Amazon, 6th Street, and Rebecca Minkoff are proving to be trendsetters in this domain and have launched their phygital store across the world. Retailers who are not able to provide this experience may find themselves struggling to keep up with the competition. Retailers need valuable data insights on customer behavior, sales trends, inventory levels, and more. This will help them make better business decisions and optimize their operations for maximum efficiency and profitability.
For example, by analyzing sales data, retailers can identify which products are selling well and which are not, allowing them to adjust their inventory levels and marketing strategies accordingly.
Let us first take a look at how phygital works.
Jane wanted to buy a leather jacket and went to a phygital store. She ordered the products she wanted to try using the touch screens in the store or the company app on her mobile device. She can touch and feel the jacket on the racks. Next, she sees if a fitting room is available and when to try the products. If Jane does not like the fit, she can order a different size of the same product. If not available in store, she can try out the size in a similar leather jacket and place an online order for her desired jacket in the correct size. There are micro fulfillment centers behind each store, with inventory selected based on that region’s style preference and size curve. This micro fulfillment center acts as a back store for not only the retail customers but also the online orders from that region. This is one of the many ways phygital will transform the shopping experience.
Prerequisites for a phygital store
Plan your assortment effectively
The assortment is the biggest asset for any e-commerce retailer. They must plan their assortment effectively. By taking into account factors such as customer demographics, seasonal trends, market trends, and regional preferences, retailers can ensure that the right products are available in the right locations. Thus, reducing the risk of excess inventory and improving customer satisfaction.
Group products into categories based on factors such as price, style, color, and size. This will make it easier for customers to navigate your store or website and find what they are looking for. Increff Merchandising Software helps you unify your assortment that will help you build a phygital store.
Understand the regional demand
Many brands that were operational in the Covid times as online sellers are now planning to open their physical stores since it gives them product clarity as they can touch and see the product. They have the advantage of customer pincode level demand patterns in their past years of operations.
Merchandising solutions like Increff Merchandising Software can help brands to analyze this data and mirror this online regional demand to plan inventory for the physical store. Merchandising Software can also help understand which is the best region to open a store based on data. This store can again work as a micro fulfillment center and serve both offline and online orders for which the inventory can be planned on Merchandising Software.
Avoid stockouts and overstocking
Phygital is a new concept. In order to increase sales, you may end up overstocking, but that should not be the case. By understanding data across retail sales channels brands should plan their inventory. This solves overbuying and underbuying.
This is resolved by Merchandising software solution of Increff. You need a solution that provides real-time inventory management across all physical and online stores. This means that retailers can avoid stockouts and overstocking, which can lead to lost sales and wasted inventory. With a real-time view of inventory levels, retailers can fulfill orders faster and more accurately, improving customer satisfaction and increasing sales. These features are covered by Increff’s WMS solution.
Fulfill orders faster
Conventionally, stores were just transactional avenues, by turning stores into fulfillment centers and enabling buy-online-ship-from-store capabilities, orders can be fulfilled faster. The OMS solution can be incredibly valuable when it comes to order fulfillment. Stores will be able to manage returns effectively by means of Increff Store Fulfillment System. Increff SFS helps fulfill orders and manage returns. Just like buy online pickup in store, stores can fulfill orders placed online. This will fulfill the order in a shorter time frame.
Provide an omnichannel experience
Experiences matter to customers irrespective of the mode of shopping – online or offline. Instant gratification, convenience, and flexibility are the determining factors. By understanding the customer needs and offering what is needed through the customer’s preferred sales channel, you will be able to deliver omnichannel experiences better. Increff’s Omni solution can help retailers create a seamless shopping experience across all channels, including in-store, online, and mobile.
Retailers can leverage Increff’s solutions to create a unified shopping experience that suits the needs of modern consumers. By providing real-time inventory management, dynamic discounting, valuable data insights, and optimizing order fulfillment. Increff’s solutions can help retailers improve efficiency, increase sales, and build customer loyalty. As the retail industry continues to evolve, retailers who embrace phygital retail and implement solutions like Increff’s will be best positioned for success in the future.
Embracing the phygital revolution is no longer a choice but a necessity. Customers crave a seamless blend of physical and digital experiences, and retailers must rise to the challenge. From effective assortment planning to understanding regional demand, avoiding stockouts and overstocking, fulfilling orders faster, and providing an omnichannel experience, retailers can unlock the potential of phygital stores.
With Increff’s innovative solutions by their side, retailers can optimize inventory management, streamline order fulfillment, and gain valuable insights to stay ahead in the ever-evolving retail landscape. So, hop on the phygital bandwagon, and get ready to revolutionize the way customers shop while enjoying the sweet taste of success.
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