Is Click & Collect the saviour of retail?

Traditional bricks and mortar retailers are facing significant challenges due to the wave of digital disruption sweeping the industry. Shopping and spending in Hong Kong – in fact, all throughout the Asia Pacific – is shifting online as technology progresses and consumers become more digitally-savvy.

This year Asia Pacific will actually surpass North America to become the world’s largest market for business-to-consumer e-commerce sales (Forrester), with sales of nearly $1.5 trillion (eMarketer). And with high smartphone penetration in Hong Kong and China the region is primed for smartphone shopping.

M-commerce is also being embraced in Hong Kong as payments with mobile is expected to reach HK$17.8 billion by 2015, according to PayPal.

Essentially, shopping is shifting from bricks to clicks.

From personalised marketing communications to flexible delivery options, retailers are increasingly learning that offering more choices to their customers often delivers significant value further down the line. Perhaps the best example of this new focus on customer satisfaction is a concept called Click & Collect.

The Click & Collect trend is becoming increasingly popular with retailers in Hong Kong as they look to revamp the customer experience and offer clientele a flexible array of touch points. Unlike traditional “pick-up-in-store” scheme, Click & Collect allows customers to check if a product is available and then reserve it to pick up in store at a later time.

A number of innovative retailers are capitalising on the trend in Asia. For the physical retailer it creates a bridge to the online world where consumers are increasingly spending their shopping time. While for the online-only retailer it ensures their products are available to collect at a location that suits the needs of consumers.

In Hong Kong, the largest specialist wine retailer Watson’s Wine has recently introduced Click & Collect services in their online store. Through this new service, customers can enjoy the convenience of online shopping with the flexibility to collect their goods at one of the 22 stores around the city.

Harmonisation is key

Click & Collect also offers the opportunity for better inventory management and a reduction in churn, but there needs to be careful coordination between the front and back office, as well as throughout the supply chain.

Another benefit of Click & Collect is that it also can help increase footfall in store, offering companies the chance to promote products with a higher margin to a larger audience.

Click & Collect has the potential to be the driving force in the future of retail, but on its own will not work as either a sustainable retail strategy or an impactful customer service proposition. It has to work in tandem with every other part of the business, from sales to marketing to logistics.

When used correctly, it can help retailers not only attract new customers and retain valuable customers, but also can gain a better understanding of exactly how their customers wish to interact with them so as to increase their share of shopping occasions.

As consumers become ever more demanding in what they want from a shopping experience, it’s hard for any retailer to ignore this fascinating trend.