Showroom: a success factor for modern retail
If even market giants such as Ikea now rely on showrooms in some countries, the groundbreaking success of the concept can no longer be denied. However, pure showrooms are not only of interest to global corporations; more and more small and medium-sized companies and start-ups are opting for a prestigious retail space without sales. And there are good reasons for this.
Contents:
- Showroom concept: what is it?
- What are the advantages of a showroom?
- What opportunities do showrooms offer online retailers?
- Can bricks-and-mortar retailers also benefit from the showroom concept?
- Rental of own retail space for showrooms
- The showroom concept as “Retails as a Service”
- Are there sectors for which presentation areas are particularly interesting?
- What does a successful showroom offer customers?
- Showme Stores as an expert for showrooms
Showroom concept: what is it?
A showroom is a retail space that is used purely for displaying products and providing advice. Customers can see the items they want in real life. Everything can be touched and tried out. However, the goods cannot be purchased directly on site, but only afterwards, for example via the website or online store.
Showrooms are primarily known in this country through car dealerships. There it is normal to test drive the vehicles and then order your own car. In the meantime, many other sectors are also relying on showrooms.
What are the advantages of a showroom?
A showroom offers numerous advantages to both end consumers and retailers who use the showroom – the following should be mentioned here in particular:
- Customers can inspect and test the goods in detail before purchasing.
- The retailer saves on expensive storage space in city centers.
- A comparatively small exhibition space is sufficient, which reduces rental costs.
- Showrooms may also open on Sundays and public holidays if no sales take place there.
The experience of showroom users shows that 75% of customers buy additional products after the on-site consultation. In addition, 20% higher shopping basket values are achieved after a visit to the showroom.
What opportunities do showrooms offer online retailers?
More and more online retailers are adopting this concept. Their aim is to pick up customers in their shopping behavior. The positive consequence of this is an increase in sales and turnover as well as customer loyalty.
But why are retail spaces with a purely presentational character becoming increasingly popular? One of the reasons is a phenomenon that marketing experts call reverse ROPO (Research Online, Purchase Offline).
The majority of customers(88%) research online before making a purchase. However, simply researching product details and customer reviews is usually not enough. People are drawn to local stores, especially when it comes to goods that require explanation or items with a high failure rate. There they test 63 % of Germans buy the products they had previously enquired about online. After trying out the product, it is often purchased on site.
The online retailer comes away empty-handed. One possible solution is to offer a showroom. The combination of online store and showroom offers an unbeatable overall concept. The advantages of online and offline retail merge.
Can bricks-and-mortar retailers also benefit from the showroom concept?
Traditional companies with a stationary offering can also use showrooms profitably. In regions with high rents, they only use a comparatively small exhibition space. They relocate their warehouse to less expensive suburbs. This saves costs. Customers still have the opportunity to see the items and test them in person. They can then either collect the desired goods from the warehouse in person or have them sent directly to their home.
One factor that affects local retailers is reverse ROPO or showrooming. Customers inspect the goods in the store but then buy them online from a cheaper provider. Thanks to the use of smartphones, it is now possible to compare prices quickly, easily and directly in-store. If the customer finds the desired item online at a lower price, they usually buy it there.
Rental of own retail space for showrooms
Resourceful retailers from the USA came up with an idea to cushion the potential loss of sales for bricks-and-mortar retailers. They began to rent out limited retail space in their stores to online store operators, among others. This trend is known as Retail as a Service (RaaS). The retailer offers store space and the handling of various services. The manufacturer of the goods pays for this. In addition, manufacturers who rent such a showroom receive valuable customer data that they can use to better analyze both their buyers and their products.
The showroom concept as “Retails as a Service”
Some companies have specialized in RaaS and offer this as a service to online retailers, manufacturers, etc. They rent out stationary shops and showrooms. They rent stationary stores and rent out individual exhibition spaces or showrooms there. The advantage for the exhibitor is that they do not have to worry about administrative matters such as rental contracts, electricity costs, etc. or specialist staff on site – the Retail-as-a-Service providers take care of all this and the basic furnishing of the local business premises.
For retailers, the cross-selling potential of RaaS should not be underestimated. People who come into the store because of one exhibitor’s products also see the range offered by other exhibitors or the main store owner. This can generate additional sales.
Are there sectors for which presentation areas are particularly interesting?
In fact, showrooms are more important for some sectors than others. The fashion industry is one of the beneficiaries, which is why even the online fashion giant Zalando has opened outlets in various cities around the world. The online-only trade means that clothing stores are otherwise losing out on important sales. But if you don’t want to pay the high rent for an outlet, you can rely on the trendy exhibition spaces.
In addition to the fashion industry, the following business sectors also use showrooms:
- Technology
- Household articles
- Furniture
A showroom makes particular sense when it comes to bulky or bulky items that require explanation. Customers also like to see the original products before they buy them when it comes to goods with a high failure rate, such as clothing and shoes.
What does a successful showroom offer customers?
For a showroom to be accepted and used by as many customers as possible, it must meet the following requirements:
- The showroom is in an attractive location and is easily accessible.
- Competent specialist staff are on hand to provide professional advice.
- There are plenty of products from the online store to try out.
- The atmosphere is pleasant and inviting.
Showme Stores as an expert for showrooms
As a Retails as a Service provider, we at Showme Stores are characterized by locations in regions with high purchasing power. Staggered display areas are available for your products. Showme Stores offer this option from an area of just 20 m².
Of course, expert advisors are available on site to explain the goods to customers in detail. Staff are also on hand to help with online purchases and guide shoppers through the process step-by-step if required. This is particularly appealing to older customers with high purchasing power.
The Showme stores are inviting, which is not only due to the modern café lounge, but also to the homely interior.
Showrooms are seen as the future of window shopping, which is why more and more innovative companies are using this option. Are you interested in the Showme offer? Then please get in touch with us!
