chapter fifteen: retailing trends and best practices · •experiential retailing and...
TRANSCRIPT
Chapter Fifteen: Retailing Trends
and Best Practices
Progress is impossible without change; and those who cannot change their minds, cannot change
anything.
– George Bernard Shaw Nobel Laureate in Literature, 1975
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Integrated Retail Management Flowchart
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Objectives
• Outline current trends in retailing.
• Describe some best practices in the retail environment.
• Apply the integrated retail management flow chart to a hypothetical retail outlet.
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Trends in Retailing
• Globalization
• Multi-channel retailing
• Increased use of technology
• Personalization
• Evolution of brick and mortar stores
• The sharing economy
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Globalization
• Retailers expanding in growth markets
• Customized products based on location
• Globally networked supply chain
• Pressure to find sources closer to point of distribution
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Multi-channel Retailing
• Integration of multiple channel retailing
• Seamless approach – Omni-channel retailing
• Capabilities of tracking customers across channels
• Comprehensive multi-channel strategy necessary
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Increased use of Technology
• New technologies will continue to be adopted
• Smartphone technology a major force
• Interactive technology increase
• Use of robotics will increase
• Wearable technology will be more common
• Shopping wherever/whenever
• Data privacy concerns will challenge retailers
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Personalization
• Information collection on consumers will continue to grow
• Data used to provide more personalized shopping
• Personalization leads to creation of brand experiences
• Subscription commerce – delivery of a product/service on a regular basis
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Evolution of Brick and Mortar Stores
• Bankruptcies of brick and mortar stores on the rise
• Malls experiencing high vacancy rates
• Trend – very big stores or smaller stores
• Experiential retailing and shoppertainment help traditional stores to thrive
• Specialized stores will grow
• Pop up stores will increase in popularity
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The Sharing Economy
• Also known as collaborative consumption • A system that allows shared access to under-
utilized assets • Information technology is leveraged to allow
entities/people to share information about rentals or asset trading opportunities.
• Idea is to increase value of the goods and services for all involved
• Many new businesses will rely on sharing economy
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The Changing Consumer
• Consumer power increasing
• Increasing diversity will put pressure on retailers to meet the needs of a variety of groups
• Changing wants and needs (stimulation vs. sanctuary)
• Behavioral changes – new norms
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Best Practices in Retailing
• Simplicity
• Transparency
• Accessibility
• Making every experience count
• Using social media
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Five Pillars of Retailing
• Solve your customers' problems
• Treat customers with respect
• Connect with your customers' emotions
• Set the fairest (not the lowest) price
• Save your customers' time
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Market Adaptability
• Knowledge about environmental changes; and the ability to react to these changes
– Decentralizing decision making
– Streamlining processes
– Focusing on core competencies
– Implementing free exchange of information,
– Developing reward systems based on responsiveness to customers
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