Pure Online Vs. Brick and Click Organisations
Before studying Pure Online Vs. Brick and Click Organisations, let’s understand what these organisations are and how they operate, with some notable examples.
E-commerce organizations can be broadly categorized into pure e-commerce and brick-and-click models:
1. Pure E-Commerce Organisations
Pure E-Commerce organizations operate exclusively online, without any physical storefronts. All business transactions, customer interactions, and service deliveries are conducted through digital channels.
Features of Pure E-Commerce
Pure online organizations, or pure e-commerce businesses, operate exclusively through digital platforms. Here are key features of these organizations:
i. Exclusive Online Presence
Operate entirely through online platforms, without physical storefronts or offices.
ii. Digital Transactions
All business transactions, including sales, payments, and customer service, are conducted online.
iii. Global Reach
Can potentially serve customers worldwide, depending on shipping and regulatory constraints.
iv. Scalability
Easier to scale operations up or down due to the lack of physical space and inventory constraints.
v. Lower Overheads
Reduced costs associated with physical stores, such as rent, utilities, and in-store staff.
vi. 24/7 Accessibility
Customers can access services and make purchases at any time, not restricted by physical store hours.
vii. Digital Marketing and Sales
Rely heavily on digital marketing strategies, including social media, SEO, email marketing, and online advertising.
viii. Customer Data and Analytics
Collect and analyze extensive customer data to personalize experiences, target marketing efforts, and improve services.
ix. Logistics and Fulfillment
Manage warehousing, inventory, and shipping through partnerships with third-party logistics providers or in-house systems.
x. Customer Interaction
Use digital channels for customer support, such as email, live chat, and social media, rather than in-person interactions.
xi. Technology-Driven
Utilize advanced technologies for website development, mobile apps, payment processing, and cybersecurity.
xii. Innovative Business Models
Often explore new business models like subscription services, digital products, and virtual goods.
xiii. Responsive Design
Websites and apps are designed to be responsive, ensuring usability across various devices like desktops, tablets, and smartphones.
These features enable pure online organizations to operate efficiently and adapt quickly to market changes, leveraging technology to enhance their business operations and customer experiences.
Examples of Pure E-Commerce Organisations
In India, several pure online organizations operate exclusively through digital platforms. Here are some notable examples across various sectors:
i. Retail
- Flipkart: One of India’s largest e-commerce platforms, offering a wide range of products from electronics to clothing.
- Myntra: Specializes in online fashion and lifestyle products.
ii. Services
- Zomato: A restaurant discovery, review, and food delivery platform operating solely online.
- Swiggy: Provides food delivery services from local restaurants.
iii. Marketplaces
- Snapdeal: An online marketplace for a variety of products, including electronics, clothing, and home goods.
- OLX: A platform for buying and selling used goods locally.
iv. Technology and Software
- Freshworks: Offers cloud-based customer support and CRM software solutions.
- Zoho: Provides a suite of online business applications, including CRM, project management, and office productivity tools.
v. Education
- Byju’s: An edtech company offering online educational content and tutoring for students.
- Unacademy: Provides online learning and educational content across various subjects.
vi. Freelancing and Gig Economy
- Freelancer.in: A platform for freelancers to find work and for clients to hire freelancers for various projects.
vii. Digital Products
- Hike Messenger: A messaging app that offers various features and services exclusively online.
- Paytm: Initially a mobile recharge platform, it has expanded into a comprehensive digital payment and e-commerce platform.
These organizations leverage the internet to provide their services and products, catering to diverse needs and contributing significantly to India’s digital economy.
2. Brick-and-Click (or Click-and-Mortar)
Brick-and-click organizations, combine both physical and online presences. They operate physical retail stores or offices alongside their e-commerce platforms, providing customers with multiple ways to interact with the business.
Features
i. Dual Presence
Operate with both physical stores and an online presence, allowing customers to shop in-person or online.
ii. Omnichannel Experience
Provide a seamless shopping experience across both physical and digital channels, including services like “buy online, pick up in-store” (BOPIS) and returns.
iii. Integrated Inventory Management
Manage inventory across physical stores and online platforms, often using centralized systems to synchronize stock levels.
iv. Hybrid Customer Interaction
Offer multiple ways for customers to interact, including in-store assistance, online support, and phone support.
v. Multichannel Marketing
Employ marketing strategies that cover both online and offline channels, including social media, email, print, and in-store promotions.
vi. Physical Store Utilization
Use physical locations for product display, hands-on customer experiences, and immediate purchase options. Stores can also serve as fulfillment centers for online orders.
vii.Local and Global Reach
Combine the ability to reach a global audience online with the ability to attract local customers through physical stores.
viii. Customer Service Flexibility
Provide options for customer service both online and in-store, catering to different customer preferences.
ix. Loyalty Programs
Often have loyalty programs that integrate rewards across both physical and online purchases, encouraging cross-channel engagement.
x. Cost Structure
Manage higher operational costs due to maintaining physical stores but benefit from enhanced customer reach and service capabilities.
xi. Sales Channels
Offer products and services through both physical retail and online channels, allowing customers to choose their preferred method of shopping.
xii. Experience Centers
Use physical stores as showrooms or experience centers where customers can interact with products before purchasing online.
xiii. Flexible Fulfillment Options
Provide various fulfillment options, including in-store pickup, home delivery, and returns at physical locations.
These features enable brick-and-click organizations to leverage the strengths of both physical and online retail, creating a comprehensive and flexible shopping experience for customers.
Examples of Brick and Click Organisations
In India, several prominent companies operate under this model. Here are some examples:
i. Retail
- Big Bazaar: A major retail chain with physical stores across India and an online shopping platform.
- Reliance Digital: Offers electronics and appliances through its physical stores and e-commerce site.
ii.Fashion and Lifestyle
- Shoppers Stop: A leading department store chain with physical outlets and an online shopping portal.
- Lifestyle: Operates both physical stores and an online store for fashion and lifestyle products.
iii. Pharmacy
- Apollo Pharmacy: Operates numerous physical pharmacies across India and also offers an online platform for ordering medicines and health products.
- Medlife: Provides a combination of physical and online pharmacy services, including medicine delivery and health consultations.
iv. Home and Furniture
- Urban Ladder: Specializes in furniture and home decor, with both online sales and physical showrooms.
- Pepperfry: Offers a wide range of furniture and home products online and has physical experience centers in select cities.
v. Books and Stationery
- Landmark: A retail chain for books, music, and stationery, with physical stores and an online shopping option.
vi. Grocery
- D-Mart: Operates physical grocery stores and has started offering online shopping and delivery services in select locations.
vii. Automotive
- Mahindra & Mahindra: While primarily known for its automotive and farm equipment, it has an online presence for vehicle information, bookings, and after-sales services, alongside physical dealerships.
These organizations integrate their physical stores with online platforms, providing customers with the flexibility to shop in person or online according to their preference.
Key Differences between pure online and brick and organisaitons
Pure Online Vs. Brick and Click Organisations
Here’s a table highlighting the key differences between pure online (pure e-commerce) organizations and brick-and-click (click-and-mortar) organizations:
|
Aspect
|
Pure Online Organizations | Brick-and-Click Organizations | ||
| Presence | Operate exclusively online. | Have both physical stores and an online presence. | ||
| Customer Interaction | All interactions occur through digital channels. | Customers can interact both online and offline. | ||
| Inventory Management | Managed solely through online platforms. | Managed across both physical stores and online. | ||
| Brand Experience | Limited to online experience and digital marketing. | Offers integrated brand experience through both physical and online touchpoints. | ||
| Cost Structure | Typically lower due to absence of physical stores. | Higher due to costs associated with maintaining physical locations. | ||
| Geographic Reach | Often global or nationwide depending on shipping. | Limited by the locations of physical stores but enhanced by online reach. | ||
| Flexibility | High flexibility in updating online content and services. | More complex due to coordination between online and offline operations. | ||
| Customer Service | Usually handled through digital channels (email, chat, etc.). | Can offer both online and face-to-face customer service. | ||
| Sales Channels | Exclusively online sales platforms. | Sales through both physical stores and online platforms. | ||
| Examples | Amazon, Netflix, Spotify. |
|
This table summarizes the main distinctions between the two types of organizations, highlighting how their operational models differ in various aspects.
