The retail industry is a highly competitive sector with a lot of mature players on the market. Nowadays, the abundance of retailers allows consumers to be choosy which makes customer loyalty one of the most desired assets.
Companies must find creative ways to distinguish themselves from their competitors. An even though retailers possess an extensive set of tools from target marketing to attractive merchandise, the profitable growth can still remain a challenge.
In order to succeed, retailers have to deal with customers’ liquid demands, modern trends, digital disruption and tight margins. Moreover, the digitalization process has now reached the retail industry hence increasing the popularity of online stores and driving the e-commerce sector.
Challenges of the Retail Industry
Over the past 20 years, the retail industry has been experiencing dramatic changes. Retailers are now used to constantly shifting competition factors. Those who acquired an ability to quickly transform their business strategy feel the most confidence. However, nowadays the frequency of these changes has increased making even established retailers feeling vulnerable.
As in any business, retail companies have to constantly evolve and implement new strategy techniques. Successful retailers aim to utilize new technology trends to enhance customer experience and grow their brand. It is important to identify the most effective technology related to the company’s infrastructure. For instance, retailers are now using data collection and analysis tools to have a better understanding of customers’ buying decisions.
It is crucial for retailers to be aware of the customers’ unique needs. Competitive prices, convenience and experience are the main factors that influence customers’ buying decisions. Regardless of the channel, retail managers have to focus on building long-lasting loyal relationships with their customers by understanding their expectations and making personalized offers.
The competition for a potential customer is tough in the retail industry. Giant stores like Walmart have the ability to offer a bigger assortment at a lower price, which makes it hard to compete with, especially for a small business.
On the other hand, Amazon is taking over the Internet retailing. With the increasing popularity of mobile smart devices, e-commerce has become a major shopping platform. People are using the Internet to search product information and compare prices. However, despite that e-commerce accounts for about 10% of all retail sales, physical stores with web-capabilities still have an advantage in the retail industry.
How We Can Help
The fast-changing retail industry landscape pressures company leaders to adapt their business strategies by making important decisions. Despite the fact that all market players experience similar challanges, we know that every company has its unique issues and goals that need to be addressed.
Brandlab Studio consultants have a deep understanding of the retail sector and can offer solutions that are tailored to solve specific challenges your company is facing. Using extensive knowledge, we can help you choose the best tools to transform business and adapt to the new environment.
Through in-depth data analytics, we help retailers increase the effectiveness of their operational, organizational, marketing and financial processes. Whether it’s diversifying assortments, exploring omnichannel possibilities or creating a unique in-store experience, we assist our clients every step of the way. Our main goal is to help you achieve the excellence in every aspect of the highly competitive retail business.