IMPORTANCE OF REINVENTION IN RETAIL

#Retail#Evolution#Consumerchanges#Technology

Retail involves selling goods and services to consumers. The retail industry is dynamic and keeps changing over time due to various reasons such as intense competition, changing consumer behavior, and technology, among others.

During the 1980s, retailers only needed to open stores in areas where their products were likely to be bought. This saw many retailers opening stores in different locations to take their products close to their customers. This value creation process by retailers to consumers revolved around interactions at a physical store and through advertisements using television, radio, posters, and word of mouth.

However, by the 2000s, with more users adopting technology and using smartphones, the retail industry was greatly affected. As a result, the number of walk-in customers declined since it was possible to shop for a product online and have it delivered. Businesses that failed to adapt to the changing trends ended up closing their stores.

The new trends made retailers realize that retail was no longer all about a product, ensuring it was supplied to the right locations and customers found it. With increased competition and similar products from different retailers, innovation and creativity are key to business survival. In the 21st century, brands cannot afford to keep presenting their products or services in the same format as they did years back.

There are various reasons pushing retailers to reinvent their businesses. One such reason is mobile commerce that has been enhanced by advancements in technology. This has seen retailers integrating mobile marketing as more consumers rely on smartphones for day-to-day use, including online shopping.

Social media platforms have also greatly influenced the retail industry as consumers’ decisions are swayed by information shared on these platforms by other users and influencers. This means that consumers no longer rely on retailer opinion. Instead, they will look for reviews and recommendations from other consumers on social media platforms.

Consumers also expect personalized services and products. This requires retailers to use technologies to track user activity on the internet and provide goods that fit customers' interests in or based on previous searches. This data-driven approach also helps create personalized experiences for consumers whether they shop online or in-store.

Even before the COVID-19 pandemic that affected the retail industry, the sector was struggling to keep up due to a shift to online and omnichannel shopping. The pandemic may have accelerated an already happening shift in the industry. Consumers are more interested in retailers offering digital and contactless shopping, requiring retailers to adapt and change their operations.

Consumers trust retailers that offer tailored incentives, fairly priced goods, predictable experience, and timely delivery in the case of online shopping. This indicates that retailer value creation is now driven by automation, personalization, interaction, transparency, and control. Therefore, retailers who invest in relevant technologies are better placed to survive in a market full of highly innovative competitors.

The bottom line is that reinvention in retail is constant. Every day, there are new trends, innovative entrants joining the market, and customers preferring convenience over loyalty. Therefore, retailers who want to continue operating need to adjust to meet changing customer demands and market conditions.

Published On:

https://www.behance.net/mikeedwardssite(December 8, 2021)