On the threshold of 2024, the line between the online and offline worlds is blurring. Digital brands like Global Relax are successfully making the transition from online to offline, following industry leaders like Alibaba and Amazon and pioneers like Allbirds.
Last year, Global Relax, a Spanish digital-native brand of relaxation products, opened four of its own physical stores in Spain, recognizing the continued importance of physical stores in retail sales and the omnichannel of the new consumer who wanted a physical experience.
Although Global Relax tells us Several challenges that every native online brand must solve:
- The Training of employees especially in physical direct sales techniques.
- The Offering new payment methodsdifferent from the online channel, especially financing solutions at the point of sale.
- Advertising material at the point of salewhich differ greatly from the online channel.
Here are the reasons that drove Global Relax to venture into offline retail and the lessons other digitally native brands can learn from this pivotal shift:
- Physical spaces offer something that online spaces cannot
In a world full of digital transactions, physical stores offer an irreplaceable advantage: personal, human-led service and personal experiences.
The modern consumer, inundated by a fast-paced and intrusive environment, seeks solace in moments rather than material possessions.
Physical retail is therefore becoming a platform for brands to showcase their identity through compelling storytelling and create a consumer-centric, experience-led environment.
For Global Relax, the offline push is not just about establishing a physical presence; It’s a commitment to deliver a high-end experience that perfectly complements your digital offering.
- Luxury and the need for a tactile experience
Global Relax’s move is consistent with data indicating that while most customers research online before making a purchase, 80% of high ticket sales continue to occur in physical retail spaces.
The ability to try products such as high-quality massage chairs before purchasing them meets consumers’ need for a tangible experience before committing to a major purchase and is critical to overcoming consumer hesitancy when making purchasing decisions for these products.
The desire for a luxurious shopping experience coupled with the need to try products highlights the importance of evaluating contextual information and advice from in-store advisors.
The physical retail environment provides a platform to transform product assortment beyond purchase into unique moments while building the trust needed to purchase high-quality items.
- New sources of income and more traffic
As digitally native brands mature, achieving new levels of sales requires a move away from the digital-only model. Global Relax’s expansion into physical retail represents a strategic step for Discover new ways to grow.
The L2 Intelligence Report highlights that physical stores drive online profits for e-retailers. This synergy results in higher net spend, increased consumer trust, and more online brand mentions and searches.
An ICSC study further underlines this Opening a physical store can result in a significant 45% increase in web trafficThis shows the positive impact of offline presence on digital engagement and brand health.
- Customer service improvement and fulfillment centers
The need for one centralized and coherent customer service strategy is paramount to the growth of digitally native brands like Global Relax. As demand increases, maintaining optimal customer service becomes challenging.
Many brands They turn their physical stores into delivery channels, Offering options such as free pickup on online orders to reduce shipping costs and improve order fulfillment speed. Beyond transactions, local stores serve as convenient returns centers, increasing customer satisfaction.
- Consumer data and deeper brand connections
Offer investments in physical retail a goldmine of consumer data, both qualitative and quantitative. Through direct in-store interactions, brands can collect real-time feedback and build deeper connections with customers.
For digitally native brands, this means going beyond the boundaries of online advertising to gain deep insights into consumer behavior.
As competition intensifies and the cost of acquiring digital customers increases, The offline space becomes a valuable source of contextual data, This allows brands to personalize relationships with consumers in a more nuanced way.
In summary, Global Relax’s expansion into physical retail is a strategic response to changing consumer preferences and market dynamics.
The convergence of digital and physical spaces marks a new era in which retail is far from dead, but is transformed into an experiential space that immerses consumers in a brand’s culture.
Global Relax’s journey serves as a roadmap for digitally native brands seeking sustainable growth and emphasizes the symbiotic relationship between online and offline commerce.
Finally, Global Relax does not hesitate to give us two keys to success:
- planning (develop an appropriate preliminary strategy).
- patience (from choosing the store with the requirements we are looking for – location, space, characteristics -) to the choice of methodology and the perfect integration with the main source of the brand: the online channel.