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BRICK AND CLICK

A business model by which a company integrates both offline


(bricks) and online (clicks) presences
Clicks and bricks Click and mortar
Chinchs and funchs Possibilities
Clicks and flips • Order on Telephone and get delivery at home
WAMBAM ('web application meets bricks and mortar' • Order from Mobile app and deliver to home
• Order from Website and deliver to home
• Order in the store and get the delivery at home

Advantages
For Company For Consumers
Retailers with good network & supply chain reach, known Some consumers like to see what they shop, some don’t,
for their traditional physical presence have a chance to both the sets of consumers are satisfied with Brick and click.
build an online presence Buy online pick up in store satisfies a customer’s desire for
instant gratification.
Retailers with limited physical space can expand their
selection by supplementing the in-store experience with No hassle and inconvenience of physically searching for
tablets, scannable QR codes, or even self-service kiosks products and standing in lines.
connected to their online store Flexible returns- When items purchased in a physical store
can be returned online and vice versa, customers have the
freedom to choose the most convenient option.
Disadvantages
For Company For Consumers

High costs incurred for both physical and online Online shopping makes price comparison easier
supply chains for customers, which encourages a 'race-to-the-
bottom', where retailers only compete on price,
Not a good option for Luxurious products or less often with quality and service deteriorating as a result.
purchased products, like cars, as sales are more
common with a physical presence, though online The prices listed online may not match the prices
product information may still be offered. listed offline, as overhead cost of offline and
However, e.g. Dacia, has an online catalogue where online purchases are different. This may result in
the car can be ordered and be collected from the confusion and deviations of expectations for the
dealership store. buyers.

Overselling is a tragic situation when your products are Buyers may end up buying more items than they
demanded in the market but you cannot supply them need, because online businesses are able to show
because your inventory does not contain that product them more items, more promotions, and more
anymore. advertisements
Some online-only service can remain a best-in-class
operation because its executives focus on just the
online business. E.g. Urban ladder.
Future Prospects
The basic idea of retailing online or offline in isolation in todays’ world can’t work. And the only
thing that will emerge as the true winning strategy is a synergized approach for brands to use a
blended model of brick and click.
Both mediums of retail possess an intrinsic advantage against the other and bringing them
together is the absolute best solution to maximize effectiveness.
Talking about India , Acc to Economics Times By 2025, 850 million people will shop online in
India accounting for over 30% of the retail industry (Source: news reports). But the fact remains
that we are still a largely traditional retail driven market.
Amazon’s plans to open over 500 retail supermarkets after the deal with Aditya Birla group
illustrate how both online and offline retailers are opting for hybrid mixed models.
Online as a medium offered better pricing, convenience of cash-free home delivered shopping.
But People still like to see, touch and try clothes. They like to smell a fragrance, try on a cosmetic
item and enquire about an array of products and brands before making a buying decision. For
many obvious categories like fashion, beauty and jewellery the online format has been observed to
be utilized more for information and the actual buying decision is made via physical contact with
the product and brand
It is believed that as digital retail channels are actively gaining momentum, more and more
retailers would be shutting their brick-and-mortar stores and relocating their businesses
online.
But in reality, ecommerce has its downsides, so a transformation from bricks to clicks will
not solve retailers’ problems entirely, but instead pose new challenges.

Adopting an omnichannel, or bricks-and-clicks, model appears to be the most viable way to


strike a balance between the worlds of online and offline retail and reap the benefits of both
forms of commerce. Such behemoths of retail as Target, Walmart, and Amazon have already
tapped into this mixed model and report positive results in terms of traffic and sales so far.

What is more, the latest solutions for the integration of online and offline retail can bring this
mixed strategy closer to the average business. And the retailers who resolve to ride the
bricks-and-clicks wave will be able to bridge the gap between online and offline retail
experience and gain a competitive edge in the rivalrous retail market

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