The challenges of the retail industry that occur continuously make activists have to work extra hard to maintain their existence. Not that the retail industry is extinct. However, the development of the digital world and all the conveniences provided are slowly suppressing the existence of their shops. This challenge looks very heavy for because there have been several well-known retail companies that decided to close their stores. Call it Debenhams, Lotus, and 7-Eleven. What are the actual challenges facing the retail industry. Here’s a summary journal for you.
Change in Shopping Trends
Big Challenges Facing the Retail Industry Today Retail businesses that rely more on physical stores are now increasingly depressed because of changes in shopping trends that are shifting to the online world. Digital transactions that continue to grow increasingly easier for consumers to get the desired item without the hassle of leaving the house. With their cellphones and internet quota, consumers can already find a variety of needs, both clothing, food, and board. Without the need to visit shops far enough distance that will take up time, energy, and transportation costs.
Shopping online in addition to providing convenience, the goods also vary with more competitive prices. Not surprisingly, this changing shopping trend is a challenge for the retail industry. For example in 2017, the large retail company Matahari was forced to close two of its stores in Pasaraya Blok M and Pasaraya Manggarai because sales were not meeting the target. And to overcome this, there are now several retail industries that are making physical shop efficiencies and starting to explore the online world. Because indeed the times are developing so rapidly. Those who are unable to follow it will surely regress slowly.
The Big Challenges Facing the Retail Industry Today Another challenge facing the retail industry is the dramatic decline in consumption and the decline in people’s purchasing power. Data from 2017 found that there was a decline in public consumption up to around 10-12%. And this decline will continue until 2019. This decline can occur for many reasons. The move to the online world described earlier was one of them. In addition, the weakening of the rupiah against the dollar which has an impact on the selling price of goods also makes many consumers hold back from shopping. Another factor is the increasingly expensive mortgage interest and falling commodity commodity prices. Therefore a number of retail industries must make electricity savings, limit products and be more selective in choosing locations.
Maintaining Consumer Loyalty
The Big Challenges Facing the Retail Industry Today Growing and maintaining consumer loyalty in the digital age is considered to be more difficult for retail entrepreneurs than in the conventional era. Once again because the goods needed are spread in various online shops or e-commerce with many variants and lower prices. Today’s consumers have lots of choices. So when a store does not provide goods and prices as desired, then there are many other alternative choices. Besides that the retail industry marketing method which tends to be the same from year to year is also one of the causes. The retail industry usually attracts consumers by providing promotions and special offers. And this has already been done by online shops even better. What retail entrepreneurs need right now is to take a personal approach to consumers. By paying more attention to members and providing information about consumer needs preferences that can be linked to the offered product.
Fulfillment of Consumer Desires
The Big Challenges Facing the Retail Industry Today What entrepreneurs need today is to prepare products that are contextual commerce. This is a term for the production process that is done by paying attention, watching and gathering the desires of consumers and how their digital behavior. This is applied so that retail entrepreneurs are able to create quick solutions so that products can be directly offered on a more personal scale. A number of global brands have adopted this with a personal communication process and understand customer journey in great detail. They have even created digital merchates for their own products. This change is a challenge that must be met by retail entrepreneurs. Where adjustments must be made in order to fulfill consumer desires.
The Great Challenges Facing the Retail Industry Today What has been alluded to earlier has been the price competition which has been the added thought of retail entrepreneurs.