In this video interview, L2 Founder and NYU professor Scott Galloway discusses the interplay between e-commerce and brick-and-mortar retail sales.
For the Millennial consumer segment in particular, research shows that 40% of men and 33% of women wish they could buy everything online. Does that mean that brick-and-mortar will cease to exist? Not exactly.
Stores are still the primary channel through which people make their purchases. Prof. Galloway anticipates that e-commerce is not likely to exceed 20% of total retail sales over the next 10 years. That said, you can’t discount the influence of digital on in-store purchase, which according to a Deloitte study, totals $158 billion USD in 2012 and is projected to reach $689 billion in 2016.
Galloway describes e-commerce as a “frenemy” for retailers: it’s been a blessing for brands who know how to wield it, such as Williams-Sonoma, Gucci and Sephora.
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