Starting to see fewer people in shopping malls, especially retail shops? This comes as no surprise. E-commerce is taking over the global retail industry and traditional brick-and-mortar shops are panicking.
According to an announcement made in the NRF Retail’s Big Show 2018, e-commerce sales are expected to greatly exceed in-store sales by 2024 (Kuhner, C., 2018).
Therefore, with e-commerce catching up, brick-and-mortar stores should be flexible and change their traditional ways of doing business in order to stay in the race. However, this does not mean a full migration to a solely e-commerce online platform. There are many examples of online shops setting up physical stores to expand their outreach. This shows that just having an online shop is not enough.
Researchers find that even though most prefer to shop online because of its convenience, many shoppers still feel the need to see the products and even try them out (Ecommerce Platforms, n.d). The fact that shoppers still need to “touch and feel” products before buying them online shows how important it is for an interactive experience (Skrovan, S., 2017). In addition, shoppers may feel safer to purchase from an online platform if they know there is a physical store.
Adopting the brick-and-click concept will ensure that the shop caters to the different preferences of shoppers, retaining them instead of losing them to their competitors. Therefore, brick-and-mortar stores are moving towards enhancing the shopping experience by providing excellent customer service and digitizing their operations.
Likewise, commercial retail developers are also looking to digitizing their operations. It is shocking to find out that many of them are still stuck with traditional methods that involve lots of paperwork. Hence, developers like Frasers Property Singapore are looking for a faster and more efficient alternative to handle their operations.
Inefficient and time-consuming manual tracking systems
Siloed Know-Your-Customer (KYC) records
RED is essentially a platform that would streamline and digitize the document management process using blockchain technology, and provide an analytics tool to track leases and bookings for mall operators. With RED, digital tenancy agreements can be created and digitally signed, and instead of cheque payments, one can opt for credit/bank transfer.
With the blockchain, we would also be able to create records of retailers for mall operators to fulfil their KYC obligations, and provide a fast and secure platform with enhanced security to store the data collected.
Kuhner, C. (28 Feb 2018). IN 2024 E-COMMERCE WILL OVERTAKE PHYSICAL RETAIL. Retrieved July 17, 2018, from https://www.generixgroup.com/en/blog/2024-e-commerce-will-overtake-physical-retail
Ecommerce Platforms. (n.d). What is a Brick & Click Store? Retrieved July 17, 2018, from https://ecommerce-platforms.com/glossary/brick-click-store
Skrovan, S. (26 April 2017). Why many shoppers go to stores before buying online. Retrieved July 17, 2018, from https://www.retaildive.com/news/why-many-shoppers-go-to-stores-before-buying-online/441112/