Unlocking success
Oxwhite banks on power of online, offline presence
WHILE online sales have picked up at a rapid phase amid the ecommerce boom, many online brands in Malaysia are also setting up physical stores to achieve omnichannel presence and ramp up their bottom lines. Similar trends can be seen in overseas markets.
This concept not only allows consumers to see the product they are actually buying, but at the same time, it also allows them to choose a product of their choice by feeling and seeing it first-hand.
Omnichannel is a business strategy that aims to provide a seamless shopping experience across all channels, including in store, and online.
Giant retailers in the United States like Walmart, Kroger, Costco, Home Depot, Walgreens, Apple and many more are maintaining their physical presence while also providing online convenience to fuel their bottom lines.
On the other hand, brands with ecommerce roots such as Allbirds in New Zealand and Everlane in the United States and homegrown Christy Ng and Shoploooh had their own success stories to tell expanding offline to maintain an omnichannel presence.
In line with this trend, Oxwhite, one of the country’s acclaimed lifestyle ecommerce brands, unveiled its inaugural offline concept store at Lalaport in Bukit Bintang City Centre in Kuala Lumpur early this year.
Its founder C K Chang tells Starbizweek, “Our offline expansion is not just about opening another store – it’s about redefining omnichannel retail presence. We recognise that while online shopping offers convenience, there’s an appeal to the tactile engagement and personalised service of physical stores.
“Although ecommerce adoption is high in Malaysia, there’s a threshold to what consumers are willing to pay for products without tactile interaction.
“Offline concept stores enable Oxwhite to offer even higher-quality products, as consumers are willing to pay more for the opportunity to touch and feel the merchandise first-hand.
“Our two months of data research indicates that consumers are willing to pay 38% more for products they can experience tactilely. This was also confirmed by the in-store buying pattern. We noticed that previously slow-moving, high-quality exclusive products that were sold online sold better in-store.
“This is probably because when buying online, people had to rely on pictures, videos and words. However, qualities such as fit, material and texture can only be justified through sensorial experiences,” Chang adds.
He says the company is expecting its retail store to contribute towards 15% of its revenue this year, as the store enables the brand to offer higher-ticket items to customers while reaching out to a different demographic.
Regarding the product mix strategy, Chang highlighted that while there may be some overlap between products sold online and offline, the sales approach differs. For instance, he says, items like casual tops for
men and women tend to perform better online due to their visual appeal, lower cost of acquisition and ease of comparison.
Conversely, Chang says products requiring a tactile experience and fit for sizes such as bottoms, often sell more effectively in offline stores, where customers can interact with them first-hand.
“There are also products that are offered exclusively offline such as limited edition special collaboration products featuring Malaysian patch arts such as nasi lemak and durians. These items are well liked by tourists who would have never discovered us online,” he adds.
Seeing opportunities in tapping into the tourist market offline, Chang says the brand will continue to collaborate with local artists to produce limited-edition apparels for its offline stores.
Oxwhite’s offline expansion was rooted in an 18-month trend and anecdotal study of movements of direct-to-consumer brands overseas and locally.
This data-driven approach allowed Oxwhite to tailor its offline expansion to meet the specific needs and preferences of its target demographic.
By leveraging consumer insights, Chang says the brand strategically positioned its offline concept store to offer an enhanced shopping experience that resonates with Malaysian consumers.
Furthermore, he says the integration of its online and offline point of sale into one robust Shopify platform allows for meticulous analysis of consumer data that enables Oxwhite to optimise its product mix and pricing strategies for both online and offline markets.
Additionally, Chang underscored the importance of ongoing data analysis to drive continuous improvement and innovation in Oxwhite’s offline retail operations. “We’re committed to staying attuned to evolving consumer trends and market dynamics,” he stated.
He says that by leveraging data analytics, the brand can adapt its online and offline strategies in real-time to capitalise on emerging opportunities and address shifting consumer preferences.
Furthermore, Oxwhite’s offline concept store also serves as a hub for customers to “try offline, and buy online”.
“This innovative approach leverages the best of both online and offline retail channels to enhance the overall shopping experience for customers,” Chang adds.
He says that customers have the opportunity to interact with the company’s products first-hand, experiencing their quality and design in a tactile manner at the offline concept store.
He views this as an important part of Oxwhite’s growth strategy as the opportunity to try, touch and feel the product addresses customers’ need for quality assurance. It then removes their barrier to purchasing higher-ticket items, he points out.