Diverse Customer: Convergence: Impulse-Buying, Unconscious Consumption or Conscious Frugality? : Zara and Amazon
We look at the digital-physical convergence as market forces disrupt both electronic commerce and bricks-and-mortar stores. Commoditization and contemporary technology as IoT, AI, Blockchain, Omni-Channel is impacting pricing and commercial effectiveness. Organizations are finding themselves at digital crossroads, at the intersection of the digital and physical and, are looking to integrate these aspects for an added perspective to an enhanced customer experience in digital, mobile, and asset-light environments.
MillennialsIt'll be interesting to note how this convergence will play upon their psychology as a Bloomberg study claims unhealthy impulse-buying and overspending will result from the sheer ease of purchase and the abstract payment methods thrust upon the (hapless millennial?) customers, meaning retailers need to “get more out of every person that walks through the door or in this case, the turnstile” | Bloomberg
Will the convergence usher in unconscious consumption or conscious frugality?
This week, in Seattle, Amazon opened its own convenience store. It's the first of its kind: a truly cashless grocery experience in which shoppers enter through gates that look like sleeker subway turnstiles, take what they want from the shelves and exit the way they came. No carts, no lines, no waiting
Spanish fashion chain Zara has opened a concept store in London, where it connects online and offline. Customers can still try out clothing in the store, but purchases are entirely handled online. Interactive mirrors | Purchases made before 14h in the 200 sqm pop-up store will be delivered at home on the same day. Customers will also not run into employees at the cash register, because payments are entirely through Bluetooth, apps or a self-scanning cash register. The fitting booths are filled with interactive mirrors that make recommendations based on the clothing customers are trying on at that time. | Retail Detail
Image and Inputs: Bloomberg, Retail Detail, the Star Online