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5 tactics for winning at physical retail

As digital-first brands find online advertising costly, physical retail is becoming a more cost-effective way to acquire customers and build long-term loyalty. What makes these new market entrants profitable is that their business models do not revolve around their products, and their physical stores reflect this shift. Many successful retailers today monetize their businesses around consumers’ pattern of engagement with a brand, which may comprehend having access to high-quality lifestyle content, benefiting from personalization, attending events, identifying with a creative or a social message, and experiencing a celebrity connection. Click through the examples below to see how digital-first brands are capturing user value with physical stores:

Retail everywhere: expanding retail from stores into hotels, Airbnb apartments, co-working spaces, and standalone accommodations;

Viral retail: investing in creating viral experiences with a high novelty factor;

Clubhouses: building upon what’s already out there in their fan networks—be it Instagram, WhatsApp, WeChat or a local coffee shop—to test and spread ideas;

Consumer intelligence channel: optimizing the physical space and interpreting consumer behavior on a more personal level;

Lifestyle hub: replacing “shopping” with exercise, travel, home decor, nutrition, and identification with a social cause as an ammunition for personal currency.

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