Bricks and mortar (also bricks and mortar or B & amp; M ) refers to the physical presence of an organization or business in a building or other structure. The term "brick-and-mortar" is often used to refer to a company owning or renting a retail store, a factory production facility, or a warehouse for its operations. More specifically, in the e-commerce business jargon of 2000, physical business is a company that has a physical presence (for example, a retail store in the building) and offers a face-to-face customer experience.
The term is typically used to contrast with a temporary business or simply a presence on the Internet, such as a full-fledged online store, which has no physical presence for buyers to visit, talk to staff personally, touch and handle products and buy from companies in person. However, such online businesses typically have non-public physical facilities in which they operate business operations (eg, corporate headquarters and back office facilities), and/or warehouses to store and distribute products. Worries such as pedestrian traffic, storefront visibility, and attractive interior design apply to physical businesses and not to online businesses. Online businesses just need to have an attractive and well-designed website, a reliable e-commerce system for payment, good shipping or delivery services, and effective online marketing tactics to drive web traffic to the site. The government has also adopted an e-government approach, namely the use of online services for citizens to enable them to fill out government forms, pay tax bills and register for government programs online; the service aims to cut brick and mortar costs (build lease/purchase and staff costs) and improve service to citizens (by offering 24/7 access to information and services).
The distinction between physical business and online business and online business has expanded in the 2000s as more and more established entrepreneurs and organizations create profitable products known as web "apps" (software applications) and mobile apps. Many web and mobile apps are digitally distributed to customers online and offer value without providing physical products or direct services, eliminating the need to manufacture products, store them, and distribute them using shipping and delivery services and/or physical retail outlets. Additionally, due to the shift to digital media in audio and video, stores can sell digital audio files from digital songs or movies or TV shows over the Internet, either by selling files to subscribers or allowing subscription fees to "stream" songs, movies, or TV shows to their digital devices. In addition, the emergence of reliable and affordable remote business collaboration tools such as teleconferencing telephony systems and video conferencing systems (eg, Skype) reduces the need for physical business buildings and offices for many Web and mobile product businesses.
Some stores have strong bricks and mortar presence and extensive online shopping services. Examples include Best Buy, Walmart, and Target. Although these shops are primarily known as brick-and-mortar businesses, these stores also have great online shopping websites. In the 2010s, the presence of online stores greatly affected some brick and mortar businesses only, as some customers were involved in "showrooming". Customers who "show off" go to a local brick store and mortar store showroom to test and try the product, and then record the brand and model number, and leave the brick and mortar store and then buy products from online stores, often for cheaper prices. Some brick and mortar stores claim that this trend is lowering their sales.
Video Brick and mortar
Etimologi
Its name is a metonym that comes from traditional building materials associated with physical buildings: brick and mortar. The term was originally used by the 19th century British novelist Charles Dickens in the book of Little Dorrit. The term brick-and-mortar business is also a retronym, where most stores have a physical presence before the advent of the Internet. The term also applies in the pre-Internet era, when comparing businesses to physical retail presence with that operate strictly in pre-Internet message-to-mail capacity.
Maps Brick and mortar
History
The history of the brick and mortar business can not be precisely determined, but it is in the earliest stalls of sellers in the first towns, where traders bring agricultural produce, clay pots, and handmade garments for sale in the village market. Brick and mortar businesses remain important in 2010, although many stores and services, from consumer electronics stores to clothing stores and even grocery stores have begun offering online shopping. This physical presence, whether from retail stores, customer service locations with staff, where clients can go themselves to ask questions about products or services, or service centers or repair facilities where customers can bring their products, has played an important role role in providing goods and services to consumers throughout history.
All major retailers in the 19th and early to mid-20th centuries began with smaller bricks and mortar, which increased as the business grew. The main example of this is McDonald's, a company that started with a small restaurant and now has nearly 35,000 restaurants in over 110 countries and plans to grow further; This shows the importance of having a physical presence. For many small businesses, their business model is largely confined to brick and mortar models, such as restaurant restaurants or dry cleaning services. However, even service-based businesses can use websites and "apps" to reach new customers or improve their services. For example, a dry cleaning service may use a website to notify customers about the hours and location (s) of their brick and mortar store.
Decline
Netflix, an online film streaming website that was founded in 1997, is an example of how an online business has affected a B & M like a video rental store. After Netflix and similar companies became popular, traditional DVD rental stores like Blockbuster LLC out of business. Customers prefer to watch movies and TV shows directly using "streaming", without having to go to a physical rental shop to rent a DVD, and then return to the store to return the DVD. "The rapid emergence of online movie streaming offered by the likes of Lovefilm and Netflix makes video and DVD models from Blockbuster practically obsolete."
There has been an increase in online retailers in the 2000s, as people use e-commerce to meet basic needs ranging from groceries to book purchases. Sales by mobile devices such as tablet computers and smartphones also increased in the 2000s: "While total online sales rose 18% year-on-year in December to Ã, £ 11.1 [B], according to the latest figures [ January 2014] from the IMRG e-tail Industry Agency and Capgemini's advisory firm, sales by mobile devices doubled to Ã, Â £ 3 [B]. '
The increase in households where adults work outdoors, combined with the convenience of shopping and buying online products and services, has reduced the number of customers who go to retail outlets, as consumers can access the same information about products and services without paying for gas, parking , and other costs, thus saving them time and money. "Consumers are currently living a busy life and shopping [Bricks and Mortars] takes time.These are often challenging tasks: Consumers find research and shopping on the Web much more convenient than brick-and-mortar visits." Another example of this is the introduction of online banking, which has affected bank branches on High Street: "Barclays will close at least 50 [Bricks and Mortar] branches this year." Brick and mortar businesses are not limited to just having a physical presence; they may also have online presence such as Tesco, which offers online shopping services as well as the presence of brick and mortar retail.
Benefits
The presence of brick and mortar companies can bring many benefits to businesses;
- Customer service: face-to-face customer service can be a major contributor in increasing business sales and increasing customer satisfaction. When customers can bring products back to the store to ask staff questions or help them learn how to use them, it can make customers feel more satisfied with their purchase. Research has shown that 86% of customers will pay more for a product if they have received great customer service.
- Face-to-face Interactions: Many consumers prefer to touch the product, and experience and test them before buying. It is often associated with Baby Boomers, older Generation X customers and parents who are used to a more traditional personal approach when it comes to shopping and prefer to have a demonstration of a product or service, especially when purchasing new technology. Another study shows, at the same price, a 90% preference for personal shopping experiences, including among teenagers, that combine social interaction with shopping. On the other hand, many of the consumers are involved in showrooming: trying to dress or checking merchandise at the store, and then buying it online for a cheaper price.
Weakness
Brick and mortar approaches also have many disadvantages.
New business and fixed costs
Fixed costs are a serious challenge for B & Fixed costs are payments that businesses must make for elements such as store rentals and monthly payments for services such as security alarms. Fixed costs remain the same for business even if it raises its operations or decreases its operations over a slow period. Conversely, variable costs change as the business slows down or down. Variable costs include wages (for hourly paid employees) and electricity to operate machines used by businesses during their operating hours. If a business increases its hours of operation, hourly wages and electricity bills will rise, but the rent and security costs of the alarm will remain the same (assuming that the business does not add additional locations). Beginner companies and other small businesses usually find it difficult to pay all fixed costs that are part of their business. Research shows that 70% of new businesses start failing in the first 10 years.
Not comfortable for customers with busy lifestyles
People have a busy lifestyle in 2010, with more families having working adults, and therefore they find it harder to find time to physically go and shop in stores and services. In addition, in many cities traffic congestion and road congestion have made it more stressful and time-consuming to drive to a physical location to shop. Online shopping and online services, accessible to consumers from a laptop or smartphone connected to the Internet are more convenient for these people. With mobile devices, consumers can order food, gifts, and carrying services even when they are "traveling", like being stuck on a bus or waiting in an airport lounge for an airplane.
Expensive and luxurious products
B & amp; M increases fixed costs for any business, therefore products sold in physical stores tend to be more expensive than online stores. For stores that sell expensive products or services in B & amp; M, customers expect a beautiful window display, fine decor in the company and a well-dressed salesman who earns a high commission on their sales. Some luxury hair salons and luxury car shops even offer convenience like free espresso and bottled water, all of which add to the overhead of selling these products and services. Online stores, even for luxury goods, do not have to pay for upscale retail stores and sellers. However, high-end online stores typically incur higher costs for their online presence, as they must have Web 2.0 leading functionality on their websites, professionally designed sites, and in some cases staff are available to respond to phone calls, e-mail and online "chat" questions.
Availability of wider stock online
Products may run out of stock in relatively small brick and cement retail stores and due to limited space in small business retail stores, these companies can only carry several types of each product. Online stores can have large stocks in many large warehouses (eg, Amazon.com has warehouses in many locations from which it ships its products) that can be quickly shipped out. An online store may order products from a large number of geographically dispersed warehouses, even warehouses owned and operated by third parties (for example, small companies), which connect with large corporations over the internet.
Queue
The queue (formation and waiting room) is part and parcel of the B & M, due to physical limitations and limited number of staff that can be hired by the company. Physical stores may have few salespeople to serve customers, so many customers may have to queue up during the busiest hours. To ease the stress of waiting, some B & M stores provide wide screen TVs with cable TV, free coffee and newspapers; while this fun improves the customer experience, they add to the cost of establishing B & On the other hand, online virtual stores where customers choose their own purchases in a virtual "shopping cart" and paying them using an e-commerce approach may be able to serve thousands of customers at the same time.
E-government
Beginning in the 1990s and early 2000s, many governments in industrialized countries began offering e-government services to citizens. Online government services are offered by government departments and agencies, ranging from automobile departments (online car registration), police (paying online ticket tickets), municipal services (paying parking tickets online or requesting filled holes) and social services (registering for social assistance or unemployment insurance) and the tax department (paying tax bills or submitting online tax returns). Many governments use e-services to provide online information to citizens (eg, "help" guides, Frequently Asked Questions, guidelines for government program applicants, etc.), thereby saving the need for call centers where citizens can call to ask questions or physical service locations where citizens can come alone to inquire about government forms or services.
This online government service aims at two goals: reducing costs for governments and improving client services. By offering these services and information online, the government saves money, as they do not have to offer many bricks and mortar client service centers where people can come and fill out this form and pay government bills. Governments that offer electronic services may also operate with fewer civil servants, resulting in fewer salary and allowances, since citizens using online services generally perform all administrative tasks (eg downloading forms, filling out forms, seeking guidance in the online "help" manual, pay fees) on their own using their home computer. The e-government service also improves services for people who have access to computers, the Internet and online payment methods (for example, credit card or PayPal), since these citizens are not limited by 9 am to 5 pm or 8 am-4 pm. hours of work of most physical government offices, and citizens do not need to pay for transportation costs (eg bus tickets, gas, parking, etc.) associated with going to a brick and mortar location. However, e-government services do not help all citizens, because of the digital divide; poor citizens, who have no home or live in rural or remote areas may not have access to high-speed Internet. These citizens, as well as those who are uncomfortable with computers or those who do not understand how to use them, which in practice mean the elderly, can not benefit from electronic services.
See also
- Showrooming
- Bricks and click
References
Source of the article : Wikipedia
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