The challenges of the retail industry that occur continuously make the activists have to work extra hard to maintain their existence. Not that the retail industry is extinct. However, the development of the digital world and all the facilities provided have gradually depressed the existence of their shops. This challenge looks very hard for because there are already several well-known retail companies that have decided to close their shops. Call it Debenhams, Lotus, and 7-Eleven. What are the challenges of the retail industry that is currently being intensified. The following is a summary journal for you.
Changes in Shopping Trends
The Big Challenges Faced by the Retail Industry Today Retail businesses that rely more on physical stores are increasingly depressed due to changes in the shopping trend that is shifting to the online world. Digital transactions that continue to grow make it easier for consumers to get the desired item without the hassle of leaving the house. Capitalizing on cellphones and internet quota, consumers can already find various needs for clothing, food and shelter. Without the need to visit shops with a considerable distance that will take up time, energy and transportation costs.
Shop online besides providing convenience, the items also vary with more competitive prices. It is not surprising that this change in shopping trends is a challenge for the retail industry. For example in 2017, the big retail company Matahari was forced to close its two stores in Pasaraya Blok M and Pasaraya Manggarai because of sales that did not meet the target. And to overcome this, there are now several retail industries that make physical store efficiency and begin to explore the online world. Because indeed the age is growing so rapidly. Who cannot afford to follow it will surely experience slow setbacks.
Decrease in consumption
The Big Challenges Faced by the Retail Industry Today Another challenge facing the retail industry is the decline in consumption and the decline in people’s purchasing power which is quite drastic. Data from 2017 found that there was a decrease in public consumption by around 10-12%. And this decline continues to occur until 2019. This decline can occur due to many reasons. The move to the online world that was described earlier was one of them. In addition, the weakening of the rupiah exchange rate against the dollar which has an impact on the selling price of goods also keeps many consumers from shopping. Another factor is the increasingly expensive loan interest and falling plantation commodity prices. Therefore a number of retail industries must save electricity, limit products and be more selective in choosing locations.
Maintaining Consumer Loyalty
The Big Challenges Faced by the Retail Industry Today Growing and maintaining consumer loyalty in the digital era are considered retailers more difficult than in the conventional era. Again because the items have been spread in various online shops or e-commerce with many variants and cheaper prices. Today’s consumers have a lot of choices. So when one store does not provide the goods and prices as desired, there are still many other alternatives. Besides that, the retail industry’s marketing method which tends to be the same from year to year is also one of the causes. The retail industry usually attracts consumers by offering promotions and special offers. And this has been done by an online shop even better. What retailers currently need is to approach them personally to consumers. By paying more attention to members and providing information about consumer preferences that can be linked to the products offered.
Fulfillment of Consumer Desires
The Big Challenge Faced by the Retail Industry Nowadays what entrepreneurs need now is to prepare products that are contextual commerce. This is the term for the production process that is carried out by paying attention to, supervising and gathering the desires of consumers and their digital behavior. This is applied so that retail entrepreneurs can create quick solutions so that products can be directly offered on a more personal scale. A number of global brands have adopted this with the communication process personally and understand the journey customers in great detail. In fact, they have created digital merchants for their own products. This change is a challenge that must be met by retail entrepreneurs. Where adjustments must be made to fulfill consumer desires.