When we think of the concept of shopping, we often think of going to a brick & mortar store and buying physical goods. However, this could be about to change as customer demands change and new opportunities arise due to the technological advancements of the past decades.
In the past, customers did not have the opportunity to order just about anything they want online, for a cheaper price and sometimes faster availability. However, due to the ever-improving efficiency of supply chains made possible by technological advancements, this became a reality. Physical stores have not (yet) fully adapted to this new reality, and one way to evolve the way brick & mortar stores work is by transforming them into digital showrooms. A digital showroom consists of a physical store location where customers can see the products a company has to offer in a virtual form. This could be used for a clothing brand to show virtual samples of their clothing, or for a car showroom to show cars that are currently not physically available.
This concept is not just interesting for a tech-savvy or business student, but also has a lot of practical upsides. Think of lower inventory costs, a reduction in the number of employees needed, and increased speed to market for new products. Moreover, due to the increased potential for data collection, digital monitoring and analysis can be used for data-driven planning, optimization and efficiency. Not to mention the fact that customers could have a better shopping experience as they will have an easier time finding products they like and ordering them through self-service.
One of the brands that recently adopted the digital showroom concept, is Tommy Hilfiger. “I’m convinced this will revolutionize the fashion industry”, chief executive officer Daniel Grieder said. “We believe this technology will play a big role in the store of the future. I don’t think brick-and-mortar stores will die out, but they will definitely change”. Even though the technology needed for digital showrooms has to keep evolving before this kind of store will become mainstream, it shows a lot of potential. Ultimately, it could end up being the solution to the modern problem of failing brick & mortar stores.
References
Damen, A. (2021). What Is a Digital Showroom? 6 Examples & Best Practices to Sell More. Available at https://www.shopify.com/retail/digital-virtual-showroom#5 (Accessed 5 October 2021)
RetailInnovation (2015). Tommy Hilfiger open digital showroom in Amsterdam. Available at http://www.retail-innovation.com/tommy-hilfiger-open-digital-showroom-in-amsterdam (Accessed 5 October 2021)
Hi,
Interesting and relevant blog. These days you see a lot of Bike Delivery companies (with Dark Stores). They focus on delivering a smaller amount of groceries with very fast delivery (most of the time within 10 minutes). A lot of people still go to brick and mortar stores for their weekly (and thus a greater amount) grocery shopping. There is one company, picnic, that delivers groceries by car and can therefore be a substitute to brick and mortar stores. However, they haven’t been profitable since they were founded in 2015.
In my opinion, digital showrooms will not be a substitute of brick and mortar stores in the feature but more an additional service. Therefore, the advantage won’t be the cost reduction for not needing physical stores – but the data collection for the company, and the fast delivery an convenience for the customer. What do you think about this?
Interesting article. Especially the pandemic has shifted many consumers from brick-and-mortar stores to online shopping. A digital showroom combines the two concepts and innovates the consumer shopping experience. Companies will have to come up with novel and creative way to design their digital showrooms as not all products are suitable for the concept at the moment. For example, retail consumers might want to feel the fabric and fitting of clothes, so a digital showroom would not be sufficient to address these needs. Although your article includes the example of Tommy Hilfiger, it does not describe how they integrate their digital showroom in their store. A digital showroom might be more convenient for furniture or decorations stores and I am curious which industries and companies will adapt the concept.