5 WAYS TO REDUCE YOUR COSTS WITH VIRTUAL STORE TECHNOLOGY
During the budget planning period, particularly in these challenging economic conditions, brands and retailers should explore ways to utilize their resources most efficiently. Retailers, among many marketing options, should consider more cost-effective solutions like virtual stores, which offer a more economical alternative compared to traditional physical stores.
LOWER START-UP COSTS
Opening a physical retail store can be costly and time-consuming.
The cost of opening a retail store in a good location is high, and setting up, a virtual store costs approximately one-tenth to one-fifteenth of this amount. This cost includes permits, business licenses, security deposits, interior design fees, furniture, store equipment, and promotion, among typical expenses. Due to the greater variety in costs for virtual stores, they can be opened with a lower start-up cost.
SHORTER TIME TO ENTER THE MARKET
Opening a physical store, developing the concept, making arrangements, hiring staff, and completing numerous tasks before the store’s launch is a time-consuming process. The opening of virtual stores usually takes about one-fourth of the time compared to physical stores. By collaborating with an expert team in areas such as 3D design/photography, user interface design, content implementation, engineering, and user experience testing, you can bring your vision to life on time for the launch of a virtual store. While opening a physical store can take up to 12 months, virtual stores are typically ready within 2-3 months.
LOWER OPERATING COSTS
Average prices per square meter for leasing a retail space vary depending on the region. When considering leasing costs, labor wages, public utilities, maintenance, and insurance – all operating expenses – running a physical retail store can incur a significant annual cost.
Virtual stores substantially reduce operating costs by providing an attractive and discovery-focused shopping experience. This allows retailers to offer this experience to consumers without dealing with additional operational expenses. As a result, virtual stores can keep operating costs quite low.
GREATER AUDIENCE REACH
Virtual stores are not limited by store hours and can be accessed anytime worldwide. Consumers can experience the store without going to a physical location. This increased accessibility allows retailers to reach a much wider audience than the customer traffic possible in a single physical store. Brands can reach and engage with new customers worldwide without needing a physical presence in international markets.
ENHANCING CUSTOMER DATA AND INSIGHTS
Virtual stores provide valuable data and insights into customer behaviors and preferences. Through advanced analytical tools, retailers can track every aspect of customers within the virtual store, from the time they spend exploring products to the time spent on specific pages. These data enable more targeted marketing efforts, personalized recommendations, and an overall improved customer experience. Physical stores struggle to gather such comprehensive data, making them limited in comparison to virtual stores in terms of capabilities.
Virtual stores not only serve as a more innovative, interactive, and discovery-focused form of e-commerce, but also offer a low-cost and high-performance platform. This platform is particularly effective among younger generations familiar with interfaces through games, with lower likelihoods of shopping from physical locations. To adapt to the evolving retail market, it’s important to align with behaviors and preferences. Virtual stores are an excellent solution to reduce costs in your retail strategy and help you keep up with the changing landscape of the retail world.
In conclusion, to succeed in the digital age and gain a competitive edge, every company needs a 3D strategy. The advantages offered by 3D technology include benefits across various areas, from cost savings to customer satisfaction. Moreover, new revenue streams like in-game digital asset sales and NFT usage present enticing opportunities for businesses.
Utilizing the power of these technologies is crucial for companies to stand out and excel in the future digital landscape, ensuring their success in the competitive arena.