Online shopping has become a booming industry. But does it mean it is a threat to offline, physical brick-and-mortar shops?
No, not directly.
Why?
It is all about the unique experience.
- Physical stores allow customers to experience the service. Online does not.
- Brick-and-mortar shopping is still something local consumers are comfortable at, where they can feel the products.
- Cinemagoing is a social activity. Netflix is not.
- Cinematic experience screens current movie titles and blockbusters.
How can traditional industry improve competitiveness? Heighten experience.
Cinema
-Infrastructural investments or refurbishments to existing cinemas such as premium movie experiences e.g. GV introduce Nappa leather seats at Gold Class Cinema for added luxury and comfort among others
-e.g. Shaw at Waterway Point is the first to use Karness' newest Clarus screen technology for better light and image quality in IMAX theater
Shopping
- Provide good face-to-face customer service
- Improve shop outlook e.g Etude House which is decorated like a princess palace delivers a visually appealing shopping experience in-and-out, including a Play, Makeup and Photo-Taking area
-On a smaller scale, facilities like fitting rooms, mirrors, music or even staff dress code also serve as a value-add and create the mood!
Second competitiveness, Benefits & Privileges
Cinema
-Offer personalized experience e.g. GV has a loyalty programme that rewards cinema patrons with customized options like programmes specific to his or her movie preferences and other benefits, encouraging them to repeat visits
Shopping
-Monetary rewards of purchasing e.g. Etude House members can accumulate points for every purchase and redeem a discount / coupon.
Third competitiveness, Relative Affordable Prices
Cinema
-Set within price range e.g. Netflix premium subscription is only $16.98 a month, which is very economical. GV Gold Class, on the other hand, is $29.00. But is it still fairly affordable? Yes! Standard cinema ticket also starts from $8.50 which remains a reasonable rate.
Shopping
-Hold promotions e.g. Products sold online e-commerce in e.g. Lazada, Carousel are normally cheaper by 40-50% than those sold in the brand physical stores. Nevertheless, there are also distribution outlets that holds regular Special Promotions and Warehouse Clearance sales every now and then.
Forth competitiveness, Convenience
Cinemas
-Be more accessible: Cinemas are increasing their locations e.g. Shaw in Waterway point, GV in Suntec city, and the new Cathay Cineplex Jem to narrow distance
Shopping
-Be in heartlands malls, other than town: Suburban malls is where office buildings educational institutions and hospitals are present, with catchment diverse and attractive to serve
-Many prefer to do their shopping in the comfort of somewhere near home, if not online.
Fifth competitiveness, Strengths
Cinema
-Immersive: Cinema is 3-dimensional in itself. It cuts you from the entire world and be engross in the movie and its characters. Netflix experience can't beat that.
Shopping
-Peace of mind: Retail Shopping is touch and feel by nature. You buy when you are 100% fine with it. You pay, you get the product immediately. Online shopping, however is risk-ier. You pay first, product later. Sometimes, you get scammed, and product received fails to meet expectation etc
Hope these pointers 1) Heighten Experience, 2) Benefits & Privileges, 3) Relative Affordable Prices, 4) Convenience and 5) Strengths help any retail and entertainment businesses in leveraging potential competitiveness against online alternatives.
In fact, online and offline leisure each has its own set of advantages that can complement as much as they compete with each other.
Bye!
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