Photo by Charlotte Coneybeer on Unsplash
“Be where your customers are” has become the order of the day, driving online-online brands into retail storefronts and physical stores into ecommerce and social media. In 2017, Shopify published a great summary of the trend, noting that 80% of retailers weren’t adequately addressing all their potential channels at the time. Even Amazon got in on the game, investing tentatively at first and, most recently, even considering its own department stores.
If you haven’t read our earlier post, the TL;DR is: Direct to consumer (DTC) brands yet to embrace multiple ways to reach their consumers (what marketing folk call omnichannel) were forced by the pandemic to quickly jump on board. Meeting rapidly shifting consumer demands – from digital-only to unique in-store experiences as cities reopened – became the name of the game.
If you’re considering the jump from your Shopify jewelry site to a physical storefront – whether a popup or a boutique – there are some key things to consider before you move forward. It’s worth noting that this advice is based on our experience with jewelry retailers across a number of channels, from pure ecommerce to fashion retail stores, as well as research and an MBA or two. But each situation will be different, and it’s often worth consulting with an expert before you dive into anything this substantial.
What should I consider before I expand from a Shopify site to a storefront?
Why are you expanding? This seems like an obvious one, but it’s important to how you grow. With limited investments, it’s important not to spread yourself too thin. If you just want to increase purchases from existing customers, a partnership with a similar brand may be more effective than renting a storefront. But if your advertising is driving new business in certain markets but also getting too expensive, cutting a deal to pop up in a nearby mall for 20% of your monthly digital ad budget may be just the thing.
How many customers do you have, and how often do they buy? The number depends on your situation, but many experts advise that you should have no fewer than 15,000 existing repeat customers before you consider branching into a physical storefront if you have a successful online business. The reason isn’t just that you’ll want to drive some in-person traffic from existing customers. You’ll also want to reach out to people like your existing customers near your store to drive foot traffic, and the bigger your customer database, the easier it is to determine what traits make people your ideal customers.
Do some market research beyond your customers. In the early stages, it’s easy to assume what you’re hearing from customers is what matters. “More, more, more!” they insist to your sales teams. “We love you!” And you believe them.
But if you don’t have a sizable and growing brand presence, you may be investing in a nice place for existing customers to meet you – and nothing more. A good local marketing company can help you assess both brand awareness – how many people know about you – and market potential – how many people want what you’re selling (and may not yet know who you are).
Does your customer demand a more personal touch? For many direct-to-consumer luxury brands, a physical space can take their customer relationship to the next level. The human connection in-store can be difficult or impossible to replicate online, and, especially in luxury, people look for a human connection and story as part of the brand.
Reinforce your offerings. If you are looking to supplement your main jewelry collection(s) with new products, that launch should coincide with your new physical location. Whether expanding into new areas – for example, from jewelry to other accessories – or simply launching a new collection, a new storefront can help drive sales both digitally and in person, deepening your relationship with existing customers and attracting new ones.
What is your idea of a physical storefront? If it’s the jewelry section at a mall or a local ring shop, you are going to miss some major opportunities, addressed below, to best tie your digital and physical infrastructure in a way that best suits your customers. Just visit a Glossier or Warby Parker store anywhere in the world to reset your idea of modern retail.
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