Why Do We Still Need Brick-and-Mortar Stores? What Does Offline Retail Tell Us About Brand Building?

In an era dominated by e-commerce and algorithm-driven consumption behaviors, it may seem counterintuitive that so many brands are doubling down on physical retail spaces.

I have visited Documents’ store and written two articles about my observations. Most recently, I returned to see their newly opened flagship – Long Temple – a name phonetically associated with the Dragon Palace, inspired by its location on Longteng Avenue (literally translated as Dragon Soar Avenue) in the West Bund. Rooted in traditional Chinese culture, this new concept store seamlessly integrates Chinese aesthetics and philosophy into its spatial design.

Coincidentally, Le Labo has also launched a new brick-and-mortar store – Beijing Heyuan Fragrance Lab (北京·合院香氛实验室) – which pays tribute to the iconic Siheyuan, a traditional courtyard residence found in Beijing. Before this, Le Labo had already shown its cultural sensitivity and strategic insight through its first store, Wulixiang Lab, in Shanghai’s Xintiandi, which also drew inspiration from local architectural heritage.

This makes me wonder: Why are brands doubling down on offline retail while more and more consumers shop online, especially in China, where e-commerce dominates, and revenue is often driven by convenience and price? What does the physical retail space teach us about long-term brand building?

1. Offline Retail Is Crucial in the Age of Cultural Branding

According to “How Brands Become Icons: The Principles of Cultural Branding” by Douglas B. Holt, we are entering a new era of brand building. We’re moving beyond the conventional model that fixates on owning abstract associations, into a time where a brand’s value lies in the specificity of its cultural expression. In this age, a brand’s success depends on how well it understands culture, weaves it into its storytelling, and creates content that resonates with its audience.

That’s why flagship stores and offline retail experiences are essential. They help establish brand identity, communicate core messages, and build emotional connections, attracting new consumers while deepening loyalty among existing ones. As I mentioned in a previous article, the magic of storytelling lies not just in hearing it, but in living inside it. A physical store sets the mood and creates an immersive atmosphere where stories rich in culture, history, and myth come alive, piquing curiosity and the desire to engage more deeply.

2. Convenience Should Not Be the Cornerstone of Brand Building

Online shopping thrives on convenience. It aligns with our fast-paced, gratification-driven lifestyles because it is efficient and time-saving. But as we doomscroll and shop out of habit or impulse, we often make decisions without intention and become less loyal to any single brand.

Meaningful brand building, however, is about creating intimacy and fostering long-lasting relationships with the products we choose. When a brand prioritizes convenience above all, it risks losing depth, vision, and emotional resonance.

That’s why brick-and-mortar stores still matter. They invite us to slow down, spend time, reflect, and become part of a brand’s world. They create the space where appreciation grows naturally, and emotional bonds are formed and reinforced.

Why This Matters Now

In markets like China, where digital commerce sets the global pace, the return to physical retail is not a step back but a strategic recalibration. Brands like Documents and Le Labo understand that physical presence, when done with cultural sensitivity and storytelling finesse, is not merely a backdrop for transactions; it’s a canvas for transformation.

As we look to the future of brand building, the most successful brands won’t just compete on price or convenience. They’ll earn loyalty by offering cultural depth, sensory richness, and a space for belonging.