E-Commerce Brands Continue To Expand Into Physical Locations

For Capital Realty president Garry E. Adams, the transition of e-commerce to brick-and-mortar stores is a natural one. E-commerce retailers have the advantage of knowing where their customers are, have established products and can complement their website with a physical location.

Adams, whose company represents emerging brands, said the beauty sector is the latest to expand into brick-and-mortar locations. His company has recently represented DryBar and Healthy Spot. New York and Los Angeles have been top locations for new brands to test. DryBar has six locations in Los Angles and five in New York.

“It’s a natural transition to establish a base, and proof of concept in a larger market is easier to duplicate and ramp up in other major markets,” said Adams, who will be speaking at an upcoming Bisnow retail event.

Adams said retailers that can expand on the service side provide customers a compelling reason to come into the store. He said DryBar, which offers beauty supplies and blowouts, is a great example of this concept.

It is irrelevant to continue to divide e-commerce and brick-and-mortar, especially when each can provide tools for the other, he said.

“Why not combine a website with brick-and-mortar? There is a physical location where people come together in person, see the product and tell each other stories. There are opportunities to bring that experience online,” Adams said. “If you have a quality product … it’s irrelevant where the transaction happens.”

Online brands also have the benefit of analytics. Online retailers track when a customer puts a product in their online shopping cart, but does not end up buying the product. With a brick-and-mortar presence, an indecisive customer could see and touch the product, giving the retailer a better chance of completing the sale.

Adams typically tells his clients the brand will eventually have competition, and he encourages retailers to make a compelling reason for the customer at brick-and-mortar locations. That way, when a competitor comes in, the bar has been set high.

Find out more about branding and e-commerce trends at Bisnow's National Retail: West Coast Series in Los Angeles on March 28.