The retail industry is being transformed at breakneck speed and the growth is flourishing in spite of fluctuation in demand, competition, geo-political challenges, inflation and also change in consumer behavior dynamics, etc. The retail companies, somehow navigating all these constraints by innovative strategies to face competition both from domestic and international players.

The consumer dynamics has changed dramatically, like online shopping or experimenting shopping at giant physical store, being it malls / hypermarkets / departmental stores, mega store etc. to minimize the shopping time and also to have inclusive approach of shopping experience. In both the cases, either in brick and mortar or online, retailers designed promotional strategies like discount and offers flooded all through the year.

Customer doesn’t have any clue on motivation behind such offers and discounts.  Whether it’s realistic? or any deceptive tactics? marketing gimmicks? etc. With the heightened and robust technology in place, both virtual display or retail merchandise looks eye catching and very attractive too. Obviously, majority of the impulse buyers may intent to purchase at the first sight eventually leads to increase in footfall. But in the long run, will it sustainable? Retention of customers? customer delightful experience etc., need to be given higher priority to utilize the customer life time value strategy rather than short term success.

Change in consumption patterns, exposure to technology and increase in per capita income leads to bolster customer expectations. In the retail landscape: personalization, convenience and accessibility through omnichannel shopping, fast and reliable delivery etc., to be prioritized along with strategically set prices (Grewal et all,2021) to capture value from consumers.

Transparency in all aspects of sourcing, product information must be very clear and it should exceed the expectations of the consumer and customer should realize the value for money. In terms of service, excellent customer service to be given, interactive and immersive experiences to be focused through AR & VR (Augmented reality & Virtual reality), chatbots, helplines, and responsible social media accounts etc., to connect with customers for seamless operations.

Moreover, besides consideration to sustainability and ethics, retail companies need to embrace the technology to foster the convenience and efficiency. For instance, AI, automation and the scope for mobile shopping etc., must be in place for enhanced customer experience. During the process of consumer journey, customers sharing their personal data, and it should be protected with safe and secured manner. Firms must adhere to consumer privacy to increase the trust and confidence thus lead to retain the customers for long period.

In this competitive world, retailers need to keep innovate new strategies and continuously keep customers engaged. Though, revolution (Har et all,2022) in the retail industry takes place, still digital divide in many countries pose threat to the industry. Hence, appropriate measures to be taken according to the geography and consumer trend to stay competitive and success.

References:

• Grewal, D., Gauri, D. K., Roggeveen, A. L., & Sethuraman, R. (2021). Strategizing retailing in the new technology era. Journal of Retailing, 97(1), 6-12.
• Har, L. L., Rashid, U. K., Te Chuan, L., Sen, S. C., & Xia, L. Y. (2022). Revolution of retail industry: from perspective of retail 1.0 to 4.0. Procedia Computer Science, 200, 1615-1625.