29 April, 2019
Retail’s new paradigm
Digitally Native Vertical Brands, Millenial Brands o “Direct to Consumer” business model. There are many names about this new generation of startups that are breaking into the Retail sector. They are characterized by co-creating products with their clients and having an impeccable social media feed.
Since the e-commerce boom the main challenge of physical Retail has been to digitalize and become omnichannel. But what happens when we are faced with the reverse process? Digital brands are betting on brick-and-mortar and may seem to go “against the tide”.
DNVB are customer-oriented
They receive many requests from followers who want to be able to touch and test the product before buying it, so its founders are realizing they need to reinvent the off-line and compete in the world of physical retail.
Moreover, having an off-line point of sales gives a human touch in the customer relationship, as it goes from being a user name or email adress to actually know their face. It also allows the brands to learn from their customers, listen to them and develop products to meet their needs more directly, plus achieving bidirectionaliy. Having in these stores the necessary technology to optimize space performance will be key to survive.
Technology in their DNA
DNVB are Born with analytics in their DNA, putting efforts in their online traffic and engagement in social media, so they unerstand that this should also be transferred to off-line. Their founders know that converting physical space intpo the brand’s showcase requires visitor analytics.
As we mentioned in previous posts, having people counters in store combined with wi-fi tracking technology allows you to obtain valuable customer information such as their path within the store, timetables and duration of the visit, as well as the conversion ratio, key indicator to optimize the sales.