By Ryan Findlay
“IF your business is not on the internet, then your business will be out of business." Given the last year, these words from Bill Gates will have resonated strongly with millions as they sought to move their business online.
Reliance on the internet hit a whole new level during the pandemic. Online shopping leaped 84.7 per cent in comparison to 2019 to account for more than half (51.6%) of all retail spend in March (2020), while online grocery spend rose a staggering 116.5%. But as the world reopens its "non-essential" retail, has the online boom had its moment? Has this digitalisation been a mere stop gap?
There's no doubt shoppers have been itching to get back into stores. The seclusion and screen time over the last year has left behind a thirst for a physical presence, leading many in our industry to question whether restrictions lifting will see a lull in e-commerce’s successful year.
Hudson is among the lucky few that closed on a profitable year in 2021. We grew 150% with the sudden, increased demand for versatile online retail platforms. But if you’re wondering whether we’re planning for a quieter period as the world resurfaces to shop in-store, the short answer is no.
The fact is that the online shopping experience is now better than ever. Brands have seen the benefits of using data to map, track and respond to target audience habits and preferences across multiple channels, to effectively convert browsers into repeat customers.
E-commerce undoubtedly saved thousands of businesses – big and small – as the shutters went down last year. But this raises the question: how does this bode for bricks and mortar shops, whose "death of the high street" concerns existed even before Covid-19?
Put simply, it’s not an either, or: today’s retail winners will be those that can offer a linked-up "omnichannel" approach. Retailers with the tools to let shoppers easily "click and collect", "check store stock" and mirror the unique brand experience with the smell, sound and look of the store with the app that sits in their customer’s pocket. With endless choice online, consumers want fewer, better, choices offline; mediocre players won’t cut the mustard.
E-commerce is growing, but we mustn’t forget that a brand’s physical presence is invaluable; there’s a reason why Londoners were queuing round the block for Selfridges as English restrictions lifted, leaving hours later with their iconic yellow bag. The public won’t stop loving physical places, and showing off products in the flesh is an age-old marketing technique to demonstrate a proud brand.
The rise in e-commerce will only continue, and it may be a turbulent year for bricks and mortar retailers as we resurface to a changed world. But Covid-19 has only hit fast-forward on the evolution of the high street – not its death.
Ryan Findlay is CEO of Glasgow-based e-commerce agency Hudson
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules here