Augusto Beato Encourages Digitally-Native Brands to Expand to Physical Stores

October 23, 2018
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Digitally-native brands should not have second thoughts on expanding into brick-and-mortar stores, according to Portland SEO's Augusto Beato.

The digital marketing executive was reacting to a study by Deloitte that found 90 percent of worldwide retail sales are still done in physical stores.

"Instead of a retail apocalypse, we're now seeing digitally native consumer brands expanding to wholesale and physical retail stores," said Beato, who is the CEO of Portland SEO.

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He was referring to a growing number of digitally native retailers like Warby Parker, Glossier and Bonobos, which didn’t need physical locations to win over millennials and steal market share. They only needed a well-designed website.

However, stiffening competition, surging online advertising costs and cheap mall space has prompted them to expand offline.

Digitally-native brands are leveraging their digital stories to break into innovative and reimagined physical locations such as pop-ups, showrooms, and experiential exhibits.

When Casper, an online mattress shopping retailer, announced its physical store early this year to complement its online sales, not only were consumers eager to see the merchandise in person, but they were excited by the digital story and felt like they were part of Casper's growth journey.

Similarly, when Glossier, an online beauty shopping resource for women, announced pop-up shops, consumers seamlessly patronized it.

According to research from a recent survey of more than 400 brands, 83 percent of brands feel the opportunities are endless for getting a product to the consumer via physical stores, eCommerce, direct to consumer and through traditional retail partners.

"In today's retail landscape, online and offline experiences are more complementary than competitive," Beato noted. "With a social media following, brands can put up physical locations and expect it to be patronized."

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SOURCE: Press Advantage [Link]

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