However, even today, many people are still wondering, “What is omnichannel?” In this article, we will discuss what is omnichannel? From the basics, we will introduce specific strategies and success stories.
- What is omnichannel?
- Differences between omnichannel, O2O, and multichannel
- Why is omnichannel necessary?
- Omnichannel precedent case study
- Case 1. MUJI
- Case 2. ABC-MART
- Case 3. Akachan Honpo
- What is your omnichannel strategy?
What is omnichannel?
Omnichannel means eliminating the distinction between online and offline in the comprehensive process of awareness, information gathering, comparison, consideration, purchase, and support when customers purchase products.
For example, a person recognizes a product at a physical store, collects information on the Internet, compares and considers it by referring to word-of-mouth and comparison sites, and then purchases it at a specific e-commerce site or physical store. After purchase, you will receive support from the manufacturer and store. If we can eliminate the boundaries between sales channels through this series of processes, we will be able to provide high value-added products to our customers and maintain long-term relationships with them as business partners.
Macy’s omnichannel strategy uses RFID (RFID tags) to unify inventory in physical stores and e-commerce, and also lends tablet devices to store staff, allowing them to make product suggestions that include e-commerce inventory when interacting with customers. By doing so, we provide high value-added services.
In addition, it is also possible to pick up products purchased through e-commerce at a physical store, and we have developed a service that suits the lifestyle of our customers.
Differences between omnichannel, O2O, and multichannel
We will explain the difference between O2O (online-to-offline/offline-to-online) and multichannel, which are often confused with omnichannel.
O2O is an abbreviation for “Online to Offline” and is a measure to realize a system that guides customers from online to offline or from offline to online. For example, these measures include giving coupons that can be used at a physical store to customers who purchase products on an e-commerce site, or conversely directing customers who have visited a physical store to the e-commerce site. Recently, efforts have expanded to include push notifications sent to the smartphones of customers who approach a Beacon module in a physical store using a technology called Beacon .
Multichannel, on the other hand, was the standard in the retail industry before omnichannel became popular. This strategy is not limited to e-commerce sites and physical stores, but uses multiple channels such as websites, SNS, and videos to increase touch points with customers. However, the biggest difference is that there is no coordination between channels like in omnichannel.
Why is omnichannel necessary?
In Japan, omnichannel strategies are progressing mainly among major retailers such as Aeon Group and Seven & i Holdings. So why is omnichannel necessary in today’s world?
The biggest reason is that “customer purchasing processes have changed significantly.” With the spread of the Internet and smartphones, customers have started purchasing by checking the actual product at a physical store while searching for the lowest price online. This is called “showrooming.”
Since e-commerce sites can offer products without intermediary margins, they can naturally sell products at lower prices than physical stores, which has accelerated the shift to showrooming and led to a decline in sales at physical stores.
In addition, it is difficult to retain customers in the internet-based purchasing process, and service quality at physical stores has less influence. Under such circumstances, it is necessary to take measures to attract customers back to physical stores and maximize sales by connecting physical stores and EC.
Due to these problems unique to the retail industry, the need for omnichannel has gradually increased.
Omnichannel precedent case study
Case 1. MUJI
MUJI, a miscellaneous goods brand developed by Ryohin Keikaku, has released the smartphone app “MUJI passport” as part of its omnichannel strategy. This app is equipped with functions such as news distribution and inventory searches for MUJI products, and a mileage program that allows users to earn points just by visiting physical stores, increasing the number of people visiting physical stores.
It also has a check-in function that allows you to earn miles when you enter within 600 meters of a store with a smartphone installed with MUJI passport, and you can receive coupons and the latest information depending on the location and time of check-in.
Case 2. ABC-MART
ABC-M ART , which has stores all over the country selling shoe products, mainly sneakers, has more than 1,000 stores in Japan and overseas. The company’s omnichannel strategy was to solve the size problem. We have started a store pick-up service that allows you to try on and purchase products selected on our e-commerce site at your nearest store.
ABC-MART opens dominant stores (multiple store openings) within the same commercial area, and has multiple stores within walking distance in major cities. If a store doesn’t have the product you want in stock, we will introduce you to a store that has a dominant store that has it in stock, and our staff may run out to pick up the product. Additionally, if a nearby store does not have the item in stock, you can search for EC inventory on the in-store tablet and purchase the item by specifying home delivery.
This reduces opportunity losses due to out-of-stock items and contributes to annual sales of 150 million yen.
Case 3. Akachan Honpo
Akachan Honpo (Seven & i Holdings Group), which specializes in baby products, is developing an omnichannel strategy that accurately captures the needs of young families who visit brick-and-mortar stores in urban areas.
Since we handle not only small items but also large items such as strollers, it would be difficult for customers who did not own a car to take them home if they purchased them at a brick-and-mortar store. Therefore, we installed tablets in stores and introduced a service that delivers products from a common inventory to your home. This makes it possible to shop hands-free by paying at the store and having the product delivered to your home as early as the next day.
Compared to other retailers, families who purchase baby products have a stronger need to “check the actual product before purchasing,” so we introduced this service to increase the number of large-scale products purchased even in small stores. This contributes to the increase in numbers.
What is your omnichannel strategy?
What do you think? There are many different types of omnichannel strategies, but they generally focus on linking channels to provide a seamless purchasing process and customer experience. What kind of omnichannel strategy is best for your company? Let’s work on our own omnichannel strategy while referring to precedent cases!
