Posted in Marketing and Strategy Terms, Total Reads: 165
Definition: Brick and Mortar
Brick and Mortar can be defined as those store that are physically located in a place and execute the business through a constructed storefront. They are contrary to the online portals which don’t need a physical infrastructure to operate. They are based on the philosophy that the customers want to experience the product before buying.
1. They offer customers the actual look and feel of the product before the consumers actually buy the product and thus attract those customer who are not tech savvy
2. They have been in existence for the last many years and therefore elaborate literature on marketing and other domains are available making life easy for executives.
3. In India where the penetration of the internet is still very low particularly in tier 3 cities and villages they form the life lie for the customers.
Disadvantage of Brick and Mortar
1. They require customers to physically visit the stores and therefore don’t score when it comes to convenience at home.
2. The reach of Brick and Mortar is very limited and confined to particular locality while that of an online store is unlimited
3. The investment in construction and maintenance of physical infrastructure is huge when compared to its online counterparts
Recently we have seen a spur in the growth of online shops as they offer a large marketplace with significantly very low investment. Many players in the online space have led to hyper competition and extreme price wars. Many of the big players even in the brick and motor industries have decided to go online so as to grab a piece of the pie. However with the advent of giants like flip kart, Snap deal this competition has become more competitive than ever.