Retail Industry Insights
Internationalisation & Evolving Models
The web as a platform has provided a viable means to reach global audiences, seeing businesses take their stores online in an effort to widen their activities and increase their profitability. Product diversity has amplified with the internet, allowing customers to benefit from an array of retailers to purchase goods from; this shift, however, has ultimately caused higher competition in the marketplace for attractive price points that encourage brand loyalty.
Regulatory & Consumer Expectations
Customer expectations have risen over time, with products expected to be high-quality regardless if it is branded, private or exclusive labels across all of their channels. This means that retailers are often left accountable for the supplier’s quality with review systems and social media comments enough to sway consumers to buy or not.
The advancement of technology is allowing companies to implement efficient resource management and gain invaluable insights for future developments. Retailers, however, may struggle in expansion if the IT solutions are not tailored to every market accessed, allowing for more concise strategic planning at a globalised level and clear training across the board. This doesn’t mean that companies should get complacent with specific software, particularly as technology continues to advance.
Profitability & Supply Chain Issues
As consumer expectations of service rise, retailers are struggling to deliver because of the complex and disjointed supply chains. Competition, nowadays, is not just between brand and brand, but in the effectiveness of the supply chain to deliver, therefore making supply chain management a crucial part of retail success. This can be difficult when transparency practice, trade experiences and supplier knowledge varies depending on countries you are operating in.