Sales Strategy
It’s No Longer About Being the Biggest — Inside the Rules of Changing Retail August 22, 2022 (0 comments)
Boston, MA--Retail is changing. It is no longer about being the biggest. Retailers must build ecosystems that help them reach customers where they live or work.
[Photo by Anna Shvets via Pexels]
There is an increased focus on going to the customer goes against the traditional business model of a brick-and-mortar where customers visit you. No longer can retailers win through scaling, and the reason behind it is a growing trust in online business, shown by increased spending.
US customers are spending more online. According to a blog post by Boston Consulting Group, spending has grown from 8.2% in 2016 to 14.% in 2021; the numbers have nearly doubled in China from 12.6% to 24.5%. Ease of access to data plans has only simplified this. Besides, it's not just about purchasing, but about knowing more about the product — seeking information about it which can be helpful for purchase; this princess is primarily driven by the empowerment that comes with internet access.
Not only are customers sitting at home, but they are also spoiled by choices — choosing models, trying them through Augmented Reality (AR) methods, and even sharing them with friends. Shopping's never been easier, and the sooner retail stores know it, the better.
The blog post by BCG notes several shifts in strategies that retailers need to look at. Some of them include:
- From selling products to providing holistic solutions to customers
- Focusing on channeling agnostic customer engagement that just stores and footfall
- Having an interconnected portfolio of store formats than just a store network featuring the same format in different sizes
- Building local geographic customer and data density over building absolute national scale
There's also a need to better understand consumer intentions — from selling products to providing solutions. To win the future of retail, brands must be aware of these changing trends. Read more in the entire post.