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Chapter 2 - The Second Round: Comparative Advantages

By 1999 retailers had started addressing the threat posed by their e-tail competitors, and e-tailers had begun recognising the values inherent in old-world experience. The result? Some offline operators abandoned their stores and headed straight onto the Net; others established partnerships with online foes to create clicks-&-mortar entities; and a handful of e-tailers, finding online financial returns dismal, entered clicks-&-mortar relationships with skilled traditional retailers. Have these strategies been reflex reactions or considered responses? Before executing any online or offline transition, you must analyse retailing’s and e-tailing’s comparative advantages.

3 of the 12 topics covered in Chapter 2…

A bad online experience will deter a large proportion of Net customers from returning to online shopping and 6% of users who have bad online shopping experiences also stop patronizing the retailers physical store.

Virtual and real-world retailers enjoy mutually exclusive assets. The trick of establishing a clicks-&-mortar partnership is to capitalize on these and minimize each side’s unique disadvantages.

A crucially advantageous role for retailers lies in supplying soft values that recognize the consumer’s human condition: sensory, experimental values which can only be met with in the physical world. The principle of real contact is central to retailer’s real-world advantage.



Articles for this Chapter
  • Contextual Branding
  • Shopping DNA
  • Retailers: Don't Fall Asleep


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