It just a few days ago when I wrote an article saying that business owners cannot rely solely on strategic location (See: Strategic Location & Customer Loyalty…). A few days have since passed and I have been getting a good feedback on it. It basically points out that now we can shop from home. Thank you to Mr. Internet. And no where can strategically beat shopping from you couch. Ouch!This is a really good point and makes me thinking why should I be bothered on spending all those money for one particular spot in the CBD (Central Business District), which will cost me around three grand a week (rent)? Where, if you think about it, it is possible for me to open an online store with considerably lesser amount (per week).
I said on previous article: “if a business needs to relocate to un-strategic location, it will need to rely not only on customer loyalty and branding but also a new way to lure customers by understanding their dreams (expectation).” This is needed because customer will incur more “inconvenient” cost and in return we have to offer something more.
Now, instead of having all the troubles figuring out customer’s dreams, why don’t we go online? If I may borrow eBay terms: “List locally, sell globally.” And at the same time, our business is in everyone’s living rooms.
Right now, some of you may still wondering why businesses still queuing for a strategic physical locations, and more of you may be puzzled with the fact that those big retails companies are gripping hard on their network of stores.
Well, it all comes to people preferences. Some people like to touch, feel and try items before they buy it. Other group of people may like window shopping, but then end up buying things. And few people I know were actually saying that they rather go to the nearest shopping mall rather than paying $10 shipping and handling fees. They all have their own reasons.
Cyber market or physical market, each has its own target audiences. A statistic has found out that the main reason people shop online was because of the convenience offered. They don’t have to queue; they don’t have to find parking. In comparison with the above, we may have two different personalities here.
People will always be different one another. A few years back, when Wal-mart offer all in one shopping experience, it has not yet made street corner convenience store die. I think even with the existence of Amazon, people still sell books in-store. I believe that people have different needs, different way of doing things, or maybe different preferences. All these different will contribute on their shopping behaviors.
It is by understanding existing customers and potential target market; a business will be able to make the best decision for them. Whether, following IKEA (one centralize massive store), do it like Target (stores all over major shopping centers) or abandon the old world and join the new cyber world. Understanding customer’s expectation and offering them with the value they want will pose a significant benefit.
Author: Michael A Oei – MarketingFirst Group
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