Is there a difference in the way you shop today when compared to probably a decade back? For most of us, the answer would be a definite ‘Yes.’ The retail revolution and technology have together turned the tables for customers, making shopping a more exciting and hassle-free experience. And today’s customers are far from being gullible to retail tactics, a click of a button is all it takes to get all the information that they require about a particular product or a retailer. Also, surging competitive pressure from online as well as offline stores is one of the prominent retail industry trends that is putting immense pressure on retailers to act now and bring in innovations and make room for themselves in the market. Furthermore, trends such as demographic changes, multichannel and mobile commerce, personalized marketing, the distribution revolution, and emerging retail industry trends and models are further expected to have a significant impact on the industry. For retailers to cope up with these changes by making the right leaps and bounds in their business, here are some of the things they need to do:
The era of ‘digital shoppers’
In the US alone, the e-commerce business is growing at an impressive rate of over 18% a year. One of the retail industry trends that have taken the sector by storm is the rise of mobile shopping. Mobile technologies are expected to influence every stage of the customer’s shopping journey — ranging from personalized promotions prompted by geotargeting, in-store research, and price checks, as well as payment capabilities that offer checkout options beyond waiting in line. Retailers must acknowledge such retail industry trends and identify how they can use mobile technologies to complement the in-store experience for their customers.
Personalized marketing
The best marketing tactic to reach out to a customer is to build a connection and make them feel valued. The good news for retailers is that the consumption of content on digital media is on the rise, which makes targeting personalized content to specific customers easier. Although mass advertising will not disappear overnight, its influence is undoubtedly waning. Companies in the retail industry can make use of sophisticated algorithms and predictive models that analyze transaction data and retail industry trends to push the right products to the right customers.
Create cost-cutting roadmaps
In this highly competitive market scenario, cost-cutting is the way forward to widen the profit margins. Retailers must address three cost levers: the indirect costs of goods not for resale, direct product costs, and labor costs. By tackling these levers, companies in the retail industry can reduce 20 to 30 % of their costs. Retailers must figure out all those aspects of businesses that are adding to the unnecessary expenses and formulate ways to cut down on them.
Data and analytics for decision making
Retailers today have access to a significant amount of data. Forward-thinking retailers are making use of the available database to facilitate effective decision making. The use of advanced analytics is one of the most promising retail industry trends that will help retail companies in making decisions and offers that are targeted and localized, as well as delivered in real time. It is not just about the marketing, but analytics can help companies create value across the whole business such as tailor assortments at the store level, to anticipate changes in customer traffic patterns, and to determine optimal distribution routes, inventory levels, and allocations.
Revamp assortments and product offerings
There is an ample number of players in the market. Therefore brands must give the consumers a good enough reason to choose them over the competitors. To attain this, companies will need to offer in-depth product expertise and unique product education to the customers that would make them feel that they are deriving more value. Retail enterprises must also develop products and services for specific groups that will drive retail spending.
