Retailers more than many other industries have had to make large adjustments to stay competitive. Retailing is a very different industry these days than 10-20 years ago. The Internet has changed the retail industry and the future of the retail industry forever. Many retailers are finding themselves overwhelmed by big data, social media, e-commerce sales, and consumer behavior.
There are several factors that are changing the business landscape of the retail industry and the future of it. Here are 3 that are significantly altering the retail industry.
1. Manufacturers and marketers have gone to direct sales strategies with consumers through e-commerce websites.
Prior to manufacturers and marketers going direct, retailers alone owned the relationship with the consumer. This coveted relationship is now these days shared by online retailers, brick and mortar retailers, distributors, and manufacturers, who sell directly to consumers now. Retailers will have to learn to share their consumer relationships moving forward and adjust to stay competitive.
2. Online retailers and consumer behavior is a real challenge for brick and mortar retail industry.
Consumers are in our mobile and digital world behaving very differently these days. Many consumers still enter brick and mortar retail stores, but often use smart phones and tablets to search for the same product online, to find better deals. This is a real challenge for brick and mortar stores. They will have to adjust to become much more flexible with pricing and incentives for consumers. It is also forcing brick and mortar retailers to have a well-established online presence.
3. Brick and mortar retail stores have moved focus on customer retention to stay competitive.
Since brick and mortar retailers have lost their monopoly on consumer relations, the business landscape changed for these brick and mortar retailers from customer acquisition to retention. With the added consumer choices, traditional retailers are busy finding the right strategies to not loose customer and retain them. This is going to become a growing trend as e-commerce websites and online retailers become more sophisticated through technology, consumer features, and incentives.
Future of the retail industry is quickly evolving and consumer’s behavior is adapting just as fast. Companies and retailers that want to stay competitive and be successful must as well evolve to meet the demands and standards of the industry, consumers, and competitors.
To get assistance as a retailer or brand, consulting services are most of the time a great method to learn about options, gain further details prior to making any decision and allocate money. Consultants can shed light on certain opportunities, options, and improvements that can be made.