Which way would you choose?
The Xetum Watch
Going digital is undoubtedly part of all companies right now. Most retail companies have a social media platform, such as Twitter and Facebook, or a website in which has eCommerce capabilities in hand with their brick-and-mortar stores. However, there are also many brands that have decided to go with the online-only route. While doing some research about brands like this, I came across an interesting one – Xetum. In a Forbes article called “The Online-only Watch Era“, the writer, Arial Adams, describes how this brand overcame the challenges in launching a completely new luxury watch brand that relies solely on the eCommerce platform. For me personally, deciding to buy a $1000 watch in-store is already a very difficult decision, let alone buying one that I have never touched or seen in person, online. However, Xetum was able to successfully launch its business and some of the strategies that the founder, Jeff Kuo, mentioned which helped his business succeed is directly tied to what was mentioned in class:
- “A buying experience that is as comfortable as possible” (A. Adams, 2012) – have websites and social media channels that is consumer-focused (photos with different views, exchange/returns)!
- “Conveying emotional appeal online” (A. Adams, 2012) – community and communication through social media platforms such as Pinterest and Facebook and constant maintenance of all the platforms!
However, while the digital trend is rainbow coloured and full of potential, what will happen to the traditional retail businesses? Many people has speculated that eCommerce will “drive traditional retail towards extinction“. But maybe not. In a recent article on Brandchannel, American Express Shares Brand’s Clicks to Bricks Stories with Online’s Day Off” advocates a “clicks to bricks movement”. Famous online-exclusive brands, such as Birchbox and Rent the Runway have made a decision to enter the physical retail game. Businesses have begun to realize that omnichannel approaches – bringing both an online and offline strategy into a business – will be the big winner in the future.
Interestingly, these online brands, who are moving towards incorporating an offline presence, are advertising this exclusive “Online’s Day Off” event online. That was a handful right? All I am trying to say is, this proves how important it is to have both elements in a business – they are complementary to each other, and not a substitution for each other. Balancing the right amount is the key!
Find the right balance!