Showrooming is a consumer behavior where shoppers visit physical retail stores to examine, try on, and research products before leaving to find and purchase the same or similar items online at a lower price. This practice has become increasingly popular with the rise of e-commerce and mobile devices, allowing customers to compare and shop for the best deals while still being able to physically interact with products before making a purchase decision. This consumer behavior is reshaping the traditional shopping experience, compelling both small boutiques and large brick-and-mortar chains to rethink their strategies. But what exactly does this term mean, and who are the consumers engaging in showrooming?
What is Showrooming?
At its core, showrooming refers to the practice where shoppers visit physical stores to examine, try on, or learn more about products but make their final purchase online, often at a lower price. This trend has gained momentum with the widespread adoption of smartphones and easy access to e-commerce platforms. Consumers can now effortlessly perform price comparisons, read reviews, and find the best deals online while still benefiting from the tactile experiences physical stores offer.
Showrooming reflects a significant shift in how we approach shopping, driven by the digital age’s convenience and transparency. This behavior is particularly prevalent in categories such as electronics, books, apparel, and home appliances, where the price variation between online and offline retailers can be substantial.
The Profile of a Consumer Who Showroom
Consumers who showroom are actively seeking the best of both worlds - the tactile, immediate experience of physical retail and the competitive pricing and convenience of online shopping. Consumers engaging in showrooming are typically well-informed, tech-savvy, and price-conscious. They value the ability to physically interact with a product before making a purchase decision but are equally keen on stretching their dollars further. These shoppers often use mobile devices in-store to check for better deals, leveraging apps and websites that compare prices across multiple retailers.
They also represent a broad demographic age but share common characteristics like comfort with technology and prioritizing value over the immediacy of in-store purchases. Their motivations can range from seeking the best prices to avoiding shipping costs, getting faster delivery, or accessing a wider variety of product options than what is available in physical stores.
Advantages of Showrooming
Rather than viewing showrooming as a threat, innovative retailers leverage this behavior to their advantage by enhancing the in-store experience and linking it seamlessly with their online offerings.
One of the primary advantages of showrooming is the potential for consumers to secure the best prices for products at that exact moment, with online retailers like Amazon offering incentives such as free shipping to Prime customers. This practice empowers consumers with more information and bargaining power and encourages a more informed consumer base capable of conducting extensive research and price comparisons.
Furthermore, showrooming removes the need for retailers to display every product they sell physically, thus requiring less space and potentially saving on overhead costs. This behavior is particularly prevalent in categories such as electronics, books, apparel, and home appliances, where the price variation between online and offline retailers can be substantial.
Disadvantages of Showrooming
Showrooming can be problematic for traditional brick-and-mortar retailers as it causes a gap in the customer journey. When customers decide on a product in-store but are swayed by online offers or lower prices, the physical retailer suffers decreased sales and profits while benefiting online competitors. This phenomenon is particularly prevalent for smaller, easily shipped items and electronic devices.
One of the disadvantages of showrooming is ethical concerns arise as shoppers may take advantage of a store's resources, staff, and expertise without contributing to its revenue. Additionally, brick-and-mortar retailers risk losing sales to competitors, including discount retailers or even secondhand shops, as customers seek the best price for a product elsewhere. This shift in consumer behavior can cause a gap in the customer journey, affecting in-store decisions due to online offers or lower prices.
Combating Showrooming
To combat showrooming, brick-and-mortar retailers offer better in-store experiences, match prices, allow in-store returns and exchanges for online purchases, and provide curbside pickup. Smaller stores and boutiques may also hold special sales, sell in-store merchandise via their websites, create membership clubs, and promote a shop's local culture. A personalized shopping experience for customers can also help combat showrooming. It allows shoppers to try out different products for themselves with the help of a shopping assistant and speak with customer service one-on-one, fostering a unique and engaging retail environment.
Conclusion
Showrooming exemplifies the evolving dynamics between online and physical retail environments, reflecting today's consumers' changing preferences and behaviors. While it presents significant challenges for brick-and-mortar retailers, particularly in competition and revenue loss, it also offers unique opportunities for adaptation and innovation. The key to overcoming the disadvantages of showrooming lies not in resisting the trend but in understanding and harnessing it to enhance the value proposition for consumers. In doing so, retailers can transform showrooming from a threat into an opportunity, ensuring sustained relevance and success in the digital age.
