With the internet, the retail industry is changing at a rapid pace. In order to put your brand in the best position to take advantage of changes, you need to know what to expect. Otherwise, you could miss out on more customers and risk falling behind. So here is what to look forward to and how to prepare:
1. Online Marketing
The biggest shift happening in the retail industry is the emergence of online marketing. This digital marketing trend means that things move faster than ever before. It also means that it is cheaper than ever before to reach your target market.
More and more companies are creating social media profiles on Instagram, Twitter, and Facebook to reach their demographic. By being proactive and establishing your brand, you can be everywhere at once and control the conversation around your brand. Of course, it is free, so you have nothing to lose by being on social media. If you own a physical storefront, then you can’t be online only of course. In that case, you need to embrace an omnichannel retailing approach. This means that you use both online and offline strategies.
One way to leverage this digital trend is to use your online storefront to drive promotions and sales. You can build an email list and then send out promotions at regular intervals to promote events, season sales, and holidays. Then, have certain rules in place that they can only redeem the coupon in the actual store. That way, you are reaching your market with digital marketing but making sure they have a higher chance of seeing and touching other items they love because they have to come into the store.
Another trend is data and analytics. If you don’t measure something, you can’t manage it. That is why it is so crucial to have marketing software installed that lets you track your online traffic. See which items are converting and which ones aren’t. That way, you don’t end up with wasted advertising dollars and traffic that you don’t learn anything from.
2. Speed
Speed is key today. Customers simply don’t have the patience they used to have years ago. Today, they expect to be served and they want delivery right now. This is a way that you can compete and stand out from the crowd if you are smart. After all, most physical retail stores don’t offer quick shipping. If you do, you will gain more business than other stores in your area. Consider ultra-fast shipping options like drone delivery and really set yourself apart.
3. Lean Retail Fronts
Managing a real brick and mortar store can be expensive. Instead of simply a website, you have to worry about real estate costs, insurance, labor, benefits, and theft. Therefore, you need to realize that ecommerce is going to squeeze you out with lower profits if you don’t cut your costs. Luckily, you can do this in a few ways.
The first thing you can do is reconsider if you need as large of a store as you have. You might have better luck with a smaller store and paying less rent. This allows you to also hire less people to manage it as well. Secondly, remove clothing or items that are not selling and instead only feature your best items right up front. This can be a way to focus on the things you excel at and save the low profit items for the end.
If you want to put your retail business in the best position to have major profits this year and beyond, then you need to embrace what is coming. Failure to make changes in your company means that the trends above will wipe you out in favor of younger companies who are using online marketing and other strategies. So instead of risking losing profits, ensure growth by getting ahead of the curve and enjoy peace of mind.
