Many years ago, large online merchants such as Ebay and Amazon also established themselves in Europe. In addition, there are local companies such as Zalando, which also concentrate exclusively on online trading. They are gaining more and more market share, putting traditional retailers under great pressure. The latter reacts by setting up its own online offering in addition to the existing branches. However, the attempt to benefit from the growth of Internet commerce in this way is rarely successful. While the online pure players - i.e. companies that concentrate exclusively on trading on the Internet - can steadily increase their sales, the growth rates for mixed providers are only very low.
Stationary retailers can invest very little in the online market
According to estimates, classic retailers still generate around 95 percent of their sales in stationary retail - even if they also have an online platform. Revenues from this area therefore represent the most important basis for the company's profit, which no manager wants to risk. This is why most of the resources flow into the branches: into sales rooms, personnel and classic marketing. For online platforms, therefore, only a relatively small proportion remains. As a result, the competition from online pure players is overwhelming. They invest all their resources in this area and therefore make up this growth market almost entirely among themselves.
Only radical reforms will make it possible to oppose onlinePure player to exist
This results in an almost hopeless situation for the traditional retail trade. Although sales in the branches are declining, they still represent the most important mainstay of these companies and consume many resources. So there is not enough left to participate in the great growth of online commerce. In order to escape this dilemma, there is actually only one possibility: to dare a radical change. Only companies that are prepared to withdraw large parts of their resources from the branch trade - even if this initially leads to a reduction in turnover - can survive in the long term against online pure players.