With retail sales at near all time highs, many wonder if the channel is capable of sustaining such lofty levels of success.
The answer to that question depends on a variety of factors, including how well the company has run its marketing. One way to determine if your company is maximizing its marketing efforts is to look at the results achieved by the company’s top selling products. If you find that the top products have not been able to gain retail traction, it may be time for a retail renewal or a revamp of the marketing approach.
Successful retail channels have a number of distinct advantages over ecommerce operations. First, customers tend to expect specific store experiences.
They know that if they want to buy a particular product from one store, they will shop within that company first. If they are unsatisfied with their purchases, they will head to another retailer with the same product. By contrast, ecommerce websites and auctions offer a wide array of products and shoppers have no idea whether or not they will get the right service or the right price until they arrive at the checkout counter. This is part of the reason that shopping on the retail channel tends to yield more favorable results.
Another advantage is the direct contact that occurs between store personnel and customers.
When someone visits one of your retail outlets, they are engaged in a conversation with one of the store owners. Usually, this conversation is short but becomes more personal as each person Leaves, and enters the store. This level of personalization provides the potential for a deeper relationship that can only strengthen your customer base. It also makes the retail channel an excellent environment for building brand loyalty. For example, if someone buys a particular pair of jeans once, they are likely to be back for more if they are impressed with the way the cashier deals with them when they enter the store.
The retail channel is one of the few industries that is largely immune to economic trends.
People generally believe that they have little control over the price of goods and are more apt to shop according to budget constraints. As a result, they are less willing to spend a great deal of money on advertising. While ecommerce certainly has an impact, there are still many stores that are able to survive despite tough economic times.
However, just because it is relatively difficult to affect the retail industry in terms of consumer spending does not mean that you should write off the online retail channel altogether.
There are still many advantages that are associated with operating an online retail business. First, the cost of establishing a physical store can be extremely expensive. Online shopping venues generally allow you to offer products to customers for considerably less than a brick and mortar location, which can significantly reduce your overall startup costs.
In addition, you are often able to sell to customers from around the world. This is especially important when you are targeting niche or specialty markets. For example, if you operate an online shop that sells antique cars, you can easily attract customers from all over the globe. Because these customers have no need of a car, they are more likely to be interested in your products.
You may also be able to attract customers from more local shopping areas if your retail store is located nearby.
For example, if you are operating an antique store located in an area where there are a large number of collectors, you will likely have a greater success rate when it comes to bringing in new customers. This is because your customers will be more likely to drive to your store if it is located nearby. Additionally, you may find that the additional traffic that your online store gets will result in even more people shopping at your retail location.
Overall, the online retail channel has a tremendous amount to offer competitive retail stores.
However, before you invest too heavily into this industry you should make sure that you take the time to educate yourself about the different retail models that are available. Only then can you be sure that you are making the right moves. Take a close look at what your competitors are doing, and what their overall store sales and profits are doing as well. Then, compare that to your own retail store sales as well. By doing this comparison you will have a very good idea of which type of online retail model will be best for your business.