Looking Ahead: The Future of the Offline Channel for Digital-born Retailers

Sammanfattning: During recent years, there has been a significant increase in e-commerce and the demand for it among customers. It has become imperative for new fashion retailers to have a digital presence, and the outbreak of Covid-19 has further accelerated this trend, amplifying the importance of having a presence online. Some believed that this was the beginning of the so-called retail death, but is that really the case? In this study, the aim is to highlight the evolving role of offline channels for digital-born fashion retailers in Sweden and the importance of an offline channel. We contribute to the existing literature by combining the views of prominent professionals from the retailer sector with consumer insight regarding digital-born fashion retailers and further explore the role of the offline channel today, and what role it will play in the future. The findings of this study suggest that the retail death is not here. There is still great value in extending offerings offline. Today, the offline channel does not necessarily have to be a place for transactions to be made, but rather an opportunity for retailers to market themselves and grow their brands. The offline channel will serve as a place for inspiration, service, and experience. Potential threats to offline channels were also investigated, and different factors that might affect the importance of it such as the price image of the retailer as well as the evolving technology regarding virtual shopping. The study concludes that virtual shopping will not serve as a threat to offline channels, but rather function as a complement. The price image of the retailer does not affect the importance of offline presence either, it still provides value regardless of price image. It rather depends on the customer in question and their individual preferences. Additionally, the rising customer acquisition costs for online retailers are investigated, and it is concluded that the offline channel will play an increasingly vital role in the future as a more cost-effective marketing tool. The overall research findings underscore the continued relevance of physical presence for digital-born fashion retailers and emphasize the importance of a multi-channel approach to meet customer expectations and drive a successful business.