The Real Reason E-Commerce Merchants are Opening Stores
When asked why he robs banks, the notorious Willy Sutton answered: “Because that’s where the money is.”
Several high-profile e-commerce merchants are venturing into the world of brick-and- mortar for the same reason. Bonobos, Trunk Club, Nasty Gal, Warby Parker, Rent the Runway and Birchbox are just a few of the big e-names opening stores. Though they tout them as an invaluable way to showcase their brands and engage with consumers, it turns out these shops might also be an unavoidable route to reaching their financial potential.
Late in the Aughts, when most of these companies came into being, venture capital was plentiful for tech businesses, which is how they were positioned. But today, pure-play e-commerce is so last decade. [Read more…]