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Vishwadeep Khatri
Message added by Mayank Gupta,

Bricks and Clicks Model is a business strategy where the products or services of a company are available both in online and offline modes. The organization has physical stores along with its online presence (e-commerce website or digital platforms).

 

An application-oriented question on the topic along with responses can be seen below. The best answer was provided by Sachin Tanwar on 1st May 2024.

 

Applause for all the respondents - Sachin Tanwar, Sameer Ahuja, Nikita Chordia, Sumukha Nagaraja.

Question

Q 665What is a Bricks and Click Model? How can it contribute to achieving business excellence and sustainable growth in retail operations? Provide examples of companies who have successfully adopted this model.

 

Note for website visitors -

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You know how some stores have both physical shops and online websites? That's the Bricks and Clicks thing. It's like having the best of both worlds.

Think about it like this: You can walk into a store, touch the stuff, try it out, and get help from real people. That's the "bricks" part. But then, if you're feeling lazy or just prefer shopping in your pajamas, you can hop online and buy the same stuff. That's the "clicks" part.

Benefits of Brick and Clicks in Retail Industry:

Expanded Reach and Market Growth: Offering both physical and online options allows retailers to reach a larger audience. Omnichannel clients often have a 30% higher lifetime value than single-channel shoppers.

Improved Access and Convenience: Customers may select how and where they interact with the company, whether it's online or in-store.

Enhanced Customer Experiences: The seamless transition between channels creates a holistic experience. Customers, for example, can place an order online and pick it up in store.
Improved Inventory Management: Unified inventory systems eliminate stockouts and excess inventory.

Higher Revenue and Lower Overhead: Using online shopping data, retailers can optimise their physical sites while lowering lease costs.

Few Companies Examples: 

Let's start with Walmart. I take it that they have physical storefronts all around? However, they're also very popular online. They have an online store where you can place orders and pick them up in person or have them delivered to your home. They seem to have combined the greatest aspects of both worlds.

And there's Ikea, the furniture company, as you may know. Most likely, you've visited one of their enormous stores. They are more than simply the showroom experience, though. You can place orders by visiting their website. They even offer door-to-door delivery services. Thus, you're covered whether you're perusing in-store or surfing the web.

Sephora. They specialise in beauty and skincare, and they provide a great loyalty programme. It works whether you shop online or in-store. You get points either way. They seem to want to reward you regardless of how you shop.

Simply put, these stores demonstrate how combining physical and digital shopping can be transformative. They're all about providing options and ensuring a positive experience, whether you're tapping away on your phone or wandering through the aisles. And you know what? It's working for them, increasing revenue and keeping customers satisfied.

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This model means a business model followed by the organization which wants to sell all or some of its products through retail network like shops and/or showrooms(ref word brick in the model) while also offering them through on-line (ref word click in the model) purchase through on-line retailers like amazon, and/or it's own website/app.

 

There is no specific sequence in this model that an organization needs to follow here i.e. an organization may decide to start selling it's products through a website/app/in-line retailer but may later on decide to also offer them through it's own or non-owned retail shops/showrooms or Vice versa 

 

Typically this is done to take advantage of the merits of both the prevalent modes (on-line as well as off-line) of reaching out to customers i.e. while option to purchase on-line  offers the customer the convenience of purchasing product(s) any-time, off-line purchase offers the customer an option to look and feel the product while purchasing. 

 

Based on customer response and feedback, it can help an organization decide which path it wants to follow for a sustainable growth. Another key factor here is how well the organization adapts to changing market demands and also use technology to augment customer experience, which is a key factor to help customer decide on its product while at the same time helping the organization enhance/optimize its efficiency while also increasing its market outreach.

 

CSAE STUDY: One example in this context is an Indian brand Lenskart which offers optical eyewear i.e. prescription glasses, sunglasses etc. on-line. While it started off initially as an on-line store offering eyeglasses/sunglasses, it later on also switched to bricks & clicks model by opening retail stores as it realized that people would also like to try it before purchasing what they want. While doing so they had also been conscious of the changing market dynamics due to new technology. It now not only offers AI solution on its website through which a customer can decide on-line if they like a particular frame and go on to purchase it, it also offers home check up by its trained resources to identify the customer's eyeglass requirement. Along with it, considering the modern day high usage of smart phone and/or computer, it has also started offering products which can reduce eye stress due to prolonged usage of smart phones and/or computers. this has not only helped Lenskart grow but is an example how the technology can be used to enhance customer experience and sales.

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It is interesting to know that even in the age of ecommerce, 80-90% sales happen in physical stores. Hence, many sellers are opting to sell product in a physical store as well as online platform. This is called Bricks-and-Clicks business model.
By adopting this model, the sellers can increase their reach and enhance customer experience. This allows the customer to shop as per their preference. The customers who prefer physical shopping may visit the store. The customers who enjoy shopping from the convenience of their device may choose online platform. 
It is possible to gather data from both offline and online channels. The data can be used to understand customer behavior, preferences, and purchasing patterns. This can help sellers to gain insights that can inform decision-making processes, such as inventory management, pricing strategies, and marketing campaigns.
Most companies in India that initially started as ecommerce business have now successfully launched their physical stores. This has significantly improved their revenue and market presence. Popular are brand like Mama Earth, Sugar cosmetics

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The Bricks and Clicks model, also known as Click and Mortar, is a strategy by retail companies which would have online/app presence in addition to already present physical stores/chains. This model enables customers a convenient way of shopping by bringing store online, they can order from home where they can pick the ordered goods physically at store or get it delivered at home.  

 

Key points in improving the business excellence and sustainable growth in retail operations:

 

  • Better Market Reach: By operating both online and offline, they can cater to customers based on desired way of shopping.
  • Better Customer Experience: It enables customers to shop through different channels and can interactions between the two parties would be more convenient with customized shopping experience.
  • Operational Efficiency: Efficient way of managing supply chain and overheads by integrating data management and inventory.
  • Flexibility and Adaptability: Businesses can reach to customer quickly based on market trends and change effectively as per change in market needs.

Examples

  • Decathlon - Sports store has both offline which started first and updated with online presence
  • Metro - Retail chain has presence with offline store and now has online presence too
  • Walmart - Retail chain started with big stores and now has online presence too
  • IKEA - had large stores for great experience and also has online presence too
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