Our Insight & Thinking on Retail Industry
Retail industry is undergoing a dramatic shift. Technologies are redefining what customer buy, how they buy, and where they buy it. Changing consumer behavior, digital disruption, shifting global landscape, and regulations changes are all on the mind of executives. How they can define their strategic pathway to growth in this digital reality is the biggest challenge face by every company.
When E-commerces emerge, retailers are forced to transform. Yet many aren’t really take a consumer-centered approach when it comes to their digital strategy. We often saw brands blindly deploying technologies just for the sake of it or because their competitors are doing it. The result? dropping customer experience and depreciation of value drive customers even further away from the brands.
In fact even in todays market, sales coming from brick-and-mortar still accounts for 84.7% of total market revenue and in the US market that figure is 89.1% which is 4.83 trillion dollar. Even if we look at innovative digital players like Apple, Costco, Decathlon, or Nike, their digital shares of revenue are on average less than 8%.
While it doesn’t mean that retailers should remain off-line while almost all customers are online, retailers should have a more consumer-centered approach to growth in this digital age. That does not just mean distribution, services, and marketing. Even in manufacturing, supply chain, and logistic retailers brands have to plan their strategy from customers perspective.
For the past ten years it has been a roller coaster. Companies around the world are testing new technologies and emerging trends are reshaping industry. However, for the next decade, it is time for retailers to take control and lead the digital wave by defining exactly what customers want and how technologies can support their journey in doing so.
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