Top 3 Challenges in the Retail Industry
What do your peers think about Retail Industry?
Retail professionals state that they have to face 3 main kinds of problems: acquiring and retaining customers, operating in a very competitive environment, and providing good quality products and services to customers.
Retail Top 3 Peer Challenges
Customer Acquisition and Retention
Although the customer retention and loyalty is seen as a big battle for retailers, the level of difficulty strongly depends on the kind of product/service being sold. Finding and attracting new customers is difficult, too, as competition is strong. For online retailers this is especially difficult since business rivalry isn’t confined to geographical location.
The retail market is highly fragmented and competitive (depending on where the store is located), which gives consumers a lot of choice and makes it difficult for any retail company to stand out. Even larger store chains with important marketing budget struggle to be dominant in many locations. Though challenging, product/service differentiation is a key aspect in this extremely competitive environment.
Consumers demand quality products with a good price which is a struggle for companies. Retailers have problems acquiring better/healthier products and providing them for a competitive price.
- Economical situation
- Staff motivation
Research-based trends and short forecast
Research states that in India the companies in the retail industry are facing the following challenges: the growth of online retail, which is a very serious competitor for bricks-and-mortar retailers and mall landlords; and the continuous foreign investment restrictions (JLL).
In Western Europe, an increase at a CAGR of 12% of online retail sales is expected until 2018. By 2019 the yearly transaction value of online, mobile, and contactless payments will grow from $2.5 trillion in 2014 to $4.7 trillion. The global e-commerce is foreseen to grow by 13% to 15% (2015/2016) (Wirecard).
Learn more about the global retail industry and get to know the trends that will shape the business in the next couple of years by visiting us at www.reportlinker.com and start your research right now!