Retail – Back to the Future

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Chatting with Clearly Contacts, Indochino and Frank & Oak as they return to the physical retail store

 There is nothing like face-to-face contact. It also allows our customer to touch and feel the products, which is not possible online.

Ethan Song, Co-founder Frank & Oak

Canadian eCommerce-first companies are hitting the big time. Menswear designer Frank & Oak, recently raised over $15 million in their series-B funding. They design, produce and sell fashion-forward clothing to men all over the world…from their website.

Clearly Contacts quietly entered the market in 2000 and soon took the contact lens business by storm with their online-only approach. The low price point and anytime, anywhere convenience resonated with thousands of young people. In 2014, the company was sold to Essilor for $445M.

Vancouver based Indochino is a runaway success with humble beginnings. Indochino co-founders and best friends, Heikal Gani and Kyle Vucko, couldn’t find suits that fit, and which they could also afford. That experience turned into a mission to bring reasonably priced, beautiful custom suits to the world…all from a website.  Investors obviously believe in the model as well, with Indochino raising over $17M so far.

In 2014, these three eCommerce-first companies identified a way to boost their brand awareness to the next level. Ironically, this involved going back to the industry model they first disrupted—the retail store.

When eCommerce is working, why go offline?

This prompts the question: What’s missing from eCommerce? Does the physical retail environment fulfill a need that cannot be accomplished through digital alone?

For Clearly Contacts, the addition of retail made perfect sense. Their customers first visit an optometrist to determine their prescription. Why not offer that service directly? Clearly Contacts CMO Braden Hoeppner told Pressboard that the stores “provide additional opportunity for us to educate customers on eye health related issues and ensure an exceptional level of care for all customers.” This service simply was not possible in the online space. With retail stores, Clearly Contacts can curate the entire eyewear purchasing experience.

For other companies, offline stores are another way to gain the customer’s attention. Indochino experimented with pop up shops throughout 2011. Kyle Vucko, CEO and Co-Founder of Indochino told us that by hosting pop up shops, Indochino could “introduce guys to the Indochino way of getting styled, measured, and dressed.” Indochino curated a clothing experience unlike any other.  The custom suit brand now has permanent physical locations in Vancouver, Toronto, New York and most recently San Francisco.

Casual clothiers Frank & Oak have announced they’ll be opening a Toronto store in addition to their Montréal location. When asked why, Co-founder and CEO Ethan Song told Pressboard that “for Frank & Oak, connecting our online, web and offline offerings is key in the evolution of our business model. We want to give our customers simpler, more seamless and flexible interactions with our brand and the content we create.” It’s clear that Frank & Oak is obsessed with offering a quality product and a quality buying experience and according to their 2013 sales numbers, the approach is working remarkably well.

Nothing beats face-to-face interactions

The key theme throughout our discussions with our three favourite eCommerce companies is that face-to-face interaction is the standout reason for opening retail stores.

Clearly Contacts CMO Braden Hoeppner reminded us that even the best online marketing cannot mimic face to face interaction. The physical stores allow his company to “create a tangible understanding about the experience that your customers are having. The retail stores gave us an opportunity to develop, test, learn and receive faster feedback.”

Ethan Song of Frank & Oak echoed Braden’s thought by saying “There is nothing like face-to-face contact. It also allows our customer to touch and feel the products, which is not possible online.”

Kyle Vucko, CEO and Co-Founder of Indochino had a slightly different take on the value of face-to-face interaction: “We see retail as a great way to help a broader set of guys who enjoy connecting in person and introducing them to a great web experience for future orders.” Retail stores give the company a way to help those unsure about the online format a way to get the perfect fitting…and make their next purchases online with confidence.

Where to next?

Will the future of retail look a lot like the past, or will these bright eCommerce companies now reinvent the physical store experience as they make the move from high tech to high street.

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