Powered by Shopline, Hong Kong
What: Asia's largest smart-commerce online platform opens its first physical pop-up store at IFC Mall, Hong Kong.
Why is it important: though online shopping has been rising in the past few months, this opening shows that physical retail remains relevant. Physical stores complement marketing efforts implemented on the online platform; in this case, increase the visibility of Shopline seller's products. Will this strategy pay off? Are physical marketplaces the next step toward a more agile brick-and-mortar retail?
Addressing new retail trends and consumer behaviour, Shopline is an omnichannel solution that provides total customised services (marketing tools, CRM, inventory management, etc) and commerce solutions to DTC brands to support businesses of all sizes to go online and go global. Powered by Shopline will give the opportunity to its merchants to showcase their products physically in the first pop-up store, set to run for six months.
Opened in October 2020, the items are selected and displayed according to the theme set for the month. This facilitates purchasing decisions for customers who can now see the products that were only available online, giving them a sense of security on the product.
Plato Wai, General Manager of Shopline Hong Kong said, "The integrated O2O model has become an emerging concept for businesses globally." Online-To-Offline business model identifies potential customers in the online space, through emails or ads, and then with different approaches and tools convince the customer to purchase in physical store.
Wai also said: "Our e-commerce Whitepaper H2 2018-2019 revealed that 20% of online merchants surveyed consider the O2O model, such as opening pop-up stores, as a key component of their future plans". This type of strategy includes techniques used in online marketing within brick-and-mortar marketing, for example, pick-up of items purchased online allowing the return of the articles at the physical store and encouraging clients to place online orders while being in the physical shop.
With the opening of this store, the sellers can experience a hands-on opportunity to get to know what multi-channel retailing is and, at the same time, see how mixing digital and physical strategies perform. For example:
- Use digital signage: inside the store, digital displays will show product information and brand videos to promote the items. For instance, Hiwalk is a popular Taiwanese snack brand and is the first merchant to set up in the store. Customers can get an exclusive look at the new items the merchant sells and learn about their nutritional value in detail and the origin of ingredients.
- Click-and-collect service: an EF locker is installed exclusively for Shopline sellers and serves as a pickup option for the online customers who can collect heir orders physically and then explore the store. It gives them the opportunity to discover the other products displayed and experience the new environment.
- Live streaming booth: brands can use the Shopline Live feature to interact with customers, during the non-peak hours.
On the other side, to generate more traffic, they will invite popular local Key Opinion leaders to the store. This strategy will respond to the current trend of livestreaming-driven online shopping by joining merchants' livestream in store.
In order to understand consumer behaviour, sellers can control sales information and customer databases. In terms of providing their sellers one-stop management, the company utilises the Shopline POS (point of sale) system which ensures that they can know their inventory, shipping status, stocks, prices, and order.
Powered by Shopline is not the first physical store that gives space to DNVBs. Dallas-based Neighborhood Goods is presented as a "new type of department store" and offers the possibility to online brands to showcase their products physically. The rotating assortment is carefully curated in order to cater to the local community.
Not to mention Showfields and Naked Retail with stores located in NYC. The first one is envisioned as an "immersive retail experience" that combines popup shops with art exhibitions and theatrical experiences, and the second one as a showcase for DTC brands.
