SINGAPORE (Dec 21): In the cut-throat environment of the e-commerce space, online retailers are finding it increasingly hard to differentiate themselves from their other online competitors.

Some have resorted to retreating into a new old space ‒ physical retail. The trend is partly driven by consumers’ dissatisfaction. Karen Yeung, an account manager, for example, is wary of buying clothes online due to inconsistent sizing by retailers.

Recently, online fashion brand Love, Bonito, as well as online concierge service Honestbee has moved offline, opening their physical stores.

With these brick-and-mortar stores, the brands are able to have a more “intimate” experience with its customers and understand them better.

Moreover, moving into an offline space allows it to leverage data to better cater to customers’ preferences, as it uses the retail space as a fulfilment centre for online orders.

By setting up physical shops, the retailers are also starting to better appreciate that locations can play a critical role.

Moving forward, would there be more online retailers on the ground — the way physical retailers were under pressure to go online in an earlier era of e-commerce?

Find out more in this week’s issue of <i>The Edge Singapore</i> (Issue 862, week of Dec 24), on sale now at newsstands.

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