challenges in retail Archives - Business Intelligence

Tag: challenges in retail

US Retail industry

Preparing for the Future of US Retail Industry: Key Areas that Need to be Addressed

Even though the age of ‘retail doom’ has been making headlines for the past couple of years, recent retail shopping trends and consumer spend patterns show that customer still favor brick-and-mortar stores over online channels. And this is expected to be one of the dominating US retail industry trends even in 2020. According to experts at Infiniti Research, the US retail industry is experiencing reinvention and transformation at an unprecedented speed. Due to this, the future of the US retail industry will be as challenging as it will be rewarding. In this article, our industry experts discuss some key questions that need to be answered by companies in the US retail industry right now in order to effectively prepare for the future.

Retailers with global aspirations are eyeing the US retail industry as their next target for expansion. Is your business equipped with strategies to face the rising competition? Request a free proposal to know how we can help your business with competent business strategies to combat rising market competition.

Are you meeting target customers online and offline?

Brand loyalty is something that companies in the US retail industry can no longer rely on even if they have a well-established brand name. In fact, our recent US retail industry analysis shows that over 50% of millennials and Gen Z consumers are attracted to smaller and more innovative brands rather than blindly making a purchase based on a strong brand name. Against this backdrop, it becomes even more important than ever before for brands in the US retail industry to engage with their consumers, especially on digital platforms. Digital channels are now one of the most important channels for retail growth and are believed to influence retail sales to a considerable extent. Experts at Infiniti Research also believe that digital channels will not only influence online sales but will also play a significant role in promoting offline sales. Providing omnichannel shopping opportunities is the way ahead for US retail industry companies, especially with e-commerce giants like Amazon venturing into the offline space, giving brick-and-mortar companies a tough competition.

Are you prepared to cope with the diversifying strategies of other retailers?

Several top retailers in the US retail industry have already begun expanding their business into other sectors such as healthcare. Moreover, non-retailers have also ventured into the retail business. For instance, a popular fitness company has now ventured into the healthy food business and fitness products retail. Most companies are now aiming to cross-industry boundaries and venture into territories that will help them expand their brand and at the same time capture greater consumer attention and market share with these cross-industry ecosystems.

To survive and thrive in the next decade, players in the US retail industry must refashion their businesses to capture opportunities arising from the changing retail industry trends. For more insights on how we can help your business achieve this get in touch with an industry expert from Infiniti Research.

Is your business positioned to win the talent war?

Traditional talent profiles will no longer be enough for players in the US retail industry to survive retail disruption. As retailers are increasingly focusing on becoming service and experience providers, talent that are highly skilled and have expertise in new industries will be paramount. For retail companies finding best-in-class talent may prove to be tough given the fact that other lucrative industries such as IT or finance tend to be more appealing for most in-demand talent profiles. Furthermore, the retail sector is generally perceived to be old fashioned and slow, making it even more difficult for US retail industry companies to hire from a competent and skilled talent pool.

Learn more about how we have helped clients in the US retail industry overcome their key business challenges

A Window of Opportunity to Win Customers in Central Europe’s Retail Sector

Retail sector

Central Europe’s retail sector: An overview

Central Europe is a highly value-oriented market where consumers strive to find new ways to stretch their budget without having to compromise on quality. Consumers in this market are constantly on the lookout for the best deals that both online and offline channels in the retail sector have to offer. In fact, in most Central European countries, promotions are becoming relatively commonplace. However, for companies in the region’s retail sector, winning consumers does not only mean merely offering mediocre-quality products at entry-level prices.

The most successful retail sector companies in Central Europe are those that are successful in finding ways to provide added value while keeping prices low. This can be achieved by improving product quality, offering a larger assortment, or providing a seamless and satisfying customer experience. Although the region is going through a phase of financial insecurity due to recent recession, this does not mean that only inexpensive products attract Central Europeans. As consumers in Central Europe are increasingly becoming omnichannel shoppers, they are educating themselves more on price and on product features. Companies in the CPG and retail sector must, therefore, ensure a consistent, value-oriented presence across channels establish a brand value for themselves in the future of retail in Central Europe. In addition, they must also act on some key priorities.

Consumers in Central Europe are in the search for the best value-for-money deals. Is your business prepared to meet the changing demands of consumers in this market? Request a free proposal to learn how our advanced market intelligence solutions can help your organization effectively tap market opportunities and stay ahead of the curve.

retail sectorInvest in ‘value for money’ brands

CPG and retail sector companies are rapidly offering higher quality or even premium products at mainstream price points. Private labels have become one of the most popular retail industry trends with several retail sector companies launching premium quality private label products and heavily investing in their advertisements. Advertisements can be used as a source to communicate emotional cues to consumers in order to make private labels an everyday household name while promoting the idea of value for money.

Expanding assortments

Companies in Central Europe’s retail industry are providing broader assortments in products to appeal better to consumes. Grocers, for instance, are providing variants including vegetarian, organic, and vegan products. Following this trend will be especially useful for fresh food and prepared meals categories. Retail sector companies can also experiment with introducing newer store formats by expanding their offerings in fresh produce, ready-to-eat meals, and grab-and-go snacks.

Wonder how you can achieve consistency and successfully adopt a value-oriented approach to win over consumer trust and loyalty? Get in touch with our experts for more insights on how we help clients across the globe to effectively achieve their business goals.

Digital technology to enhance CX

Retail sector companies and CPG manufacturers alike are investing in technology to enhance their omnichannel presence. Hypermarkets are incorporating more digital technology into their stores to help shoppers explore broader online assortments. They can also incorporate the use of digital kiosk that suggests specific items, depending on the occasion, food pairings, or customer preferences. These efforts will drive customer loyalty and offer a superior customer experience.

Final thoughts

Consumers in Central Europe are a new breed of shopper. They remember the past, were affected by the recession and are quickly trying to embrace a technological revolution. Consumers in this market are characterized by their nature to seek value for money, are extremely demanding, and expect superior technology and customer experience while shopping. As Central European consumers now have much higher expectations of retail sector and CPG companies, both offline and online, companies in the region have little choice but to innovate constantly across channels. Several have risen to the challenge; the rest should act soon or risk losing out to agile competitors.

For more insights on Infiniti’s solutions for retail sector companies, request for more information.

retail sector

Why Sweden’s Retail Sector is Captivating International Retailers

Sweden is considered as an ideal market by several international retailers, primarily due to factors including highly skilled labor force, sophisticated consumers, innovation and technological advancements, smooth business procedures, and stable economy of the country. Sweden has been consistently ranked as one of the most competitive, globalized, and productive countries in the world despite having a relatively smaller population. Furthermore, the country’s dominance in the Nordic marketplace raises the attractiveness of retail sector investments in Sweden. The country also has the highest retail sector attractiveness when it comes to establishing new business ventures, and international retailers continue to selectively expand in the Nordic region at a slightly faster rate when compared to Europe’s key cities at an aggregated level. Moreover, Sweden’s central location and strategic gateway to Northern Europe have also made it a convenient logistics hub and place for consolidated business operations.

Whether you want to gain access to the market or world-class R&D competence and innovation, our specialists will provide you with data, information, and advance market intelligence solutions for everything you need to know about the retail sector in Sweden.

retail sector

Why is Sweden an ideal market for international retailers?

Strong retail sector growth

Fueled by steady population growth and rising disposable income, the Swedish retail sector has enjoyed consecutive growth over the past two decades. Growth in both private consumption and retail sales is stronger in Sweden than most of the European countries and is forecast to outperform most of these countries in the next few years. Swedish consumers have increased retail spending for more than a decade and retail sector sales account for nearly 40 percent of the total household expenditure.

Rising population

Sweden’s population is growing steadily, especially in the urban areas. Net immigration, increasing birth rates, and low mortality are key factors that are contributing to this growth. This trend of rising population is expected to continue in Sweden, creating a broader set of audience for the retail sector companies here to target and serve.

Growth of e-tail

Online sales account for a sizeable portion of the total retail sector sales. Items including consumer electronics, clothes, and books tops the list of most sold of items through e-tail. The consumers in Sweden also indulge in shopping from international sites, especially in the case of fashion items and accessories.

Based on your company’s special needs, our experts can provide tailor-made solutions to overcome your key business challenges. Get in touch with our experts to know more.

Shopping tourism

The fashionable lifestyle and five-star culinary adventures are garnering the attention of travelers from around the globe to Sweden. Also, tourism is the fastest growing industry in Sweden. This has had a significant impact on retail sector and shopping culture in the region. Revenues from international visitors have doubled in the last five-years and visitor volumes have increased faster than the European average. This trend can be observed in Stockholm, where luxury brands compete for the affluent traveler’s attention.

Growth of e-tail

Online sales account for a sizeable portion of the total retail sector sales. Items including consumer electronics, clothes, and books tops the list of most sold of items through e-tail. The consumers in Sweden also indulge in shopping from international sites, especially in the case of fashion items and accessories.

Opportunities for different retail segments

Sweden is well suited to new retail concepts and there are several opportunities available in most segments in the retail sector. The retail market here is unregulated, proving to be highly favorable to international retailers. However, as the global retail industry has expanded rapidly into new markets, the Swedish and Nordic markets have been relatively untapped by international retailers. Traditionally, domestic, and Scandinavian brands have dominated the country, but in recent years new brands have entered the market with further expansion plans. There have been a number of new openings during the last five years. There is also an increasing interest from premium brands among retail sector consumers in the region. Additionally, several international food and beverage players are also increasingly entering the market.

Favorable logistics hub

Sweden ranks top as one of the most trade-friendly and logistics efficient nations in the world by smoothly moving goods and connecting manufacturers and consumers with intentional markets. Sweden is the preferred choice when companies consolidate distribution and warehousing activities in Northern Europe to one central location. From Sweden, major cities in Sweden, Denmark and Norway are accessible by road transport in less than 12 hours, while Finland, Latvia, Lithuania, and western Russia are accessible within 24 hours. Several Swedish locations are used by foreign retail sector companies for centralized distribution in Northern Europe.

Get more insights on Infiniti’s solutions for companies in the retail sector

Retail industry

Overcoming Challenges in Retail with Infiniti’s Solutions – A Storyboard Series of Success Stories

Lower unemployment and tax cuts have fueled the growth of the retail industry over the past year. According to the retail industry experts at Infiniti Research, 2019 will be a precarious year for players in the retail sector. As the stock market is in flux, the future of retail is expected to be dominated by steepening tariffs. Furthermore, another intriguing retail market trend is emerging markets are taking on a greater share of global growth. This could also present several opportunities for savvy retailers who are willing to face the winds heads on.

Infiniti’s solutions to overcome challenges in the retail have helped several established brands to enhance their overall performance and drive greater business growth. This newsletter offers a snapshot of some of our success stories and how our experts helped clients overcome some major risks facing the retail industry.

Attracting new customer groups for a fast-fashion retailer using market opportunity analysis

Recently, several fast-fashion retailers have had to wind up their operations due to their inability to cope up with the dynamic market trends and ever-changing consumer demands. This has acted as a wake-up call for other players in this segment to reinvent their strategies to survive. This success story is a great example of how brands that have the courage to self-disrupt will emerge as winners. Our client, a fast-fashion retailer based out of Central America wanted to attract new customer segments and wanted to identify the right marketing channels to invest in. With our market opportunity analysis, they were able to effectively target the right customer groups and thereby increased their targeted segment spend by 19%. They were also able to reverse their declining sales in less than 60 days.

Using customer buying journey maps to identify untapped opportunities

Personalization of customer experience is becoming vital for companies in the retail industry to retain their customers. To do so, retailers will need to map their customers’ journey from awareness to the purchase stage. This is where the importance of customer buying journey maps come into play for companies in the retail industry. A German retailer wanted to devise personalized product offerings, develop better marketing strategies, and drive sales. Experts at Infiniti provided the client with a customer buying journey analysis solution and devised strategies to help them personalize their marketing and sales strategies to drive maximum sales. By identifying the right marketing channels to target customers the client was able to drive customer engagement and enhance ROI by 23%.

Competitive pricing analysis to boost sales and enhance profit margins by 19%

Companies in the retail industry resort to different pricing strategies based on their unique business goals and other key factors affecting their business. However, increase in the number of competitors in the market is increasing challenges in retail especially when it comes to setting prices for products. The client is a renowned company in the Canadian retail industry. The company was facing predicaments in pricing their products in line with the current market demand and adjust to the competitors’ pricing structures. Our competitive pricing analysis solution focused on identifying how similar products of the same category are priced in the Canadian market. This helped the client to identify the optimum price at which they can set their products to attract more customer while making steady profits. As a result, the client was able to overcome challenges in retail pricing and increase their profit margins by 19% in one year.

Reducing customer churn by 37% for a European retailer with customer needs assessment solution

The European retail industry is growing exponentially and presents huge opportunities for retail companies around the globe. Despite this steady growth, rising need for convenience and rapidly changing market realities are making it vital for retailers to understand customer needs and analyze their buying patterns. Our client is a well-known brand in the European retail industry. They noticed a steady decline in sales and consequently increasing customer churn in their business. They wanted to identify the prime reasons for them and overcome the key retail industry challenges coming their way. Infiniti’s customer needs assessment solution helped the client identify their customers’ unmet needs and demands. They also gained detailed insights on the product features that drive product purchase. With this, the company in the European retail industry was able to reduce customer churn rate by 37%.

CPG industry trends

Emerging CPG Industry Trends in Asia

The rapid economic growth in Asia has resulted in increased consumer spending. Over the next decade, we can expect continued economic spend in Asia especially as the middle class widens. The economic, industrial and social reforms have transformed the lifestyle and consumption patterns of consumers in the region.  Various changes in the demographic, economic, and technological landscape in the CPG industry in Asia have also given rise to new CPG industry trends. Lured by the growth prospects, several foreign companies have already begun planning their market entry strategies into the Asian CPG industry. For such companies, it is vital to scrutinize and be watchful of the CPG industry trends and formulate strategies accordingly.

To gain a competitive edge and survive in the fiercely competitive Asian market, foreign companies must take a holistic approach inclusive of critical CPG industry trends and opportunities. Learn how our solutions can help!

CPG industry trends in Asia

CPG industryRise of ecommerce

One of the most disruptive change experienced by CPG companies in Asia is the emergence of ecommerce. Ecommerce, which is well established in the West, is gradually expanding routes to the FMCG sector in Asia’s developing markets. Increased access to the internet and smartphones are fueling are presenting a valuable opportunity for brands to target and deepen their relationships with customers. Over the last year, CPG industry sales online saw a steady growth globally, with China being one of the prime contributors to this growth. This change in consumer shopping preferences will greatly impact the CPG industry in Asia.

Growth in premium goods segment

Luxury goods are becoming highly popular among Asian consumers, fueled by urbanization, higher GDP, and changing lifestyles. Although this was relevant earlier in the fashion industry, the premium segment is becoming one of the most attractive CPG industry trends to watch out for. Demand for premium FMCG goods is growing particularly in regions like China, where the demand for luxury purchases are on the rise even in smaller cities and rural areas.

While the opportunities in Asian’s emerging markets are exciting, the market terrain in these countries is complex and dynamic. Get in touch with our experts to learn how we can help you navigate the challenges and capitalize on the opportunities coming your way.

Changing demographics

The aging population is a growing concern in Asian countries. By the year 2050, a good majority of Asia’s population will comprise of the elderly, soon making it home to the oldest population in the world. Such shifting demographics will imply significant change to the CPG industry trends in the region. The demand for certain goods are likely to increase in the long-run while the demand for some currently well-performing segments are bound to decrease. Such CPG industry trends must be considered for companies planning their market entry strategies into Asia.

Strong home-grown brands

Home-grown brands in Asia enjoy a strong and loyal customer base and will continue to dominate the CPG industry in the region. Some of these brands have even mastered effective customer targeting, flexible distribution, social media marketing, and customer engagement. Local brands understand regional consumers and mostly follow low-cost strategies while focusing on efficiency.

Gain more insights on Infiniti’s solutions for companies in the CPG industry

Recent Posts

Competitive pricing analysis

Winning in the German Consumer Market: Top Retail Industry Trends to Track

retail industry trendsRetailing in Germany is going through major transformations as consumers are increasingly becoming accustomed to the new retail trends in the market. Although the German retailers are widely known in the international markets, especially in the US in the context if their entrance into the North American market, the domestic German retail sector is also as sophisticated and competitive as other international markets with their own unique set of challenges and opportunities. In this blog, experts at Infiniti provide comprehensive insights on the current German retail industry trends.

Identify hidden opportunities in your target markets, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

Top retail industry trends in Germany

Discounters emphasizing on customer experience (CX)

In some key German retail outlets also known as ‘no-frill discount stores’, pallets of products go straight from the backroom to the sales floor. However, with the changing retail industry trends in Germany, these retailers are beginning to emphasize more on improving customer experience in retail. Furthermore, supermarkets in this region have been investing heavily into private brands in order to steal the market share from discounters. As a result, the boundaries between traditional supermarkets and discounters are becoming less clear in the German retail sector.

Increasing value of omnichannel retail

Increasing mobility and a greater number of informed customers are making digitization one of the popular retail industry trends in Germany. As a result, German retail companies have increasingly identified the need to possess the agility that comes with an effective omnichannel strategy. However, most of these retailers lack a sense of direction that is required to make their omnichannel strategy successful. The industry is now waiting to see if these retailers will develop clear strategies and begin investing more into their omnichannel strategies or refrain from selling online.

Gain competitive intelligence about market leaders, track key industry trends, opportunities and threats with our advanced market intelligence solutions. Get in touch with our experts for more insights on our solutions.

Introduction of Amazon fresh

There is some indication Amazon Fresh may be scaling its operations in the United States, but it is a relatively new concept to German consumers and is now being piloted in a few large cities like Berlin and Hamburg. Amazon Fresh delivers groceries directly to consumer homes in temperature-controlled bags. This year online sales in Germany saw a rise compared to the previous year, but it remains to be seen how consumers will respond to specifically ordering groceries online.

The aging German shoppers

The German population is growing older and this is making a significant impact on the retail industry trends in the market, affecting how retailers sell. To cope up with the changing retail industry trends, German retailers are rethinking store layouts, making product packaging easier to read, and putting benches in stores, all in an effort to better serve older customers and enhance their customer experience.

Learn how our solutions can help you stay updated with the latest retail industry trends

challenges in retail

Headwinds Facing the US Retail Market Right Now

The US retail industry is fairly consolidated and heterogeneous. Although it is one of the biggest retail markets in the world, it is also the most competitive. The top ten retail companies in the US retail market is known to hold one-third of the total market share. Furthermore, the enormous transformation in the sector has brought about new challenges in retail industry. Amidst the constantly evolving market factors, retailers are finding themselves in an uphill battle to profitably increase growth and market share. While retailers may expect increased spending by consumers in the near future, preparing for uncertainty by anticipating and responding to potential retail industry challenges has to be a large part of their overall strategy.

Infiniti possesses over 15 years of experience in helping retailers to increase business agility and decrease operating costs. Request a free proposal to know more about how our solutions can help overcome the key challenges in retail markets.

Challenges in retail market in the US

challenges in retailAttaining operational efficiency

Managing complexities and coping with the changes are some major challenges in retail right now. Yet, in order to bring efficiency to their tasks and processes, companies in the US retail industry must identify ways to deal with complexities and cope with the dynamic market conditions. Today, businesses that are running their operations based on spreadsheets find that it does not allow them to be scalable and grow with the business. Therefore, efficiency in managing their operations is vital for retailers to thrive and overcome the key challenges in retail.

Technological challenges

Most retail companies in the US continue to use outdated technologies. Although many of them understand that using outdated technologies will only add on to the already existing challenges in retail market for them, they often fail to find the required investments needed for an upgrade. Evolving technologies, including automation and business intelligence, have immense potential to transform the day-to-day operations of a retail store. Automation can ensure substantial operational cost reductions when applied to routine and repetitive tasks. It can also provide greater visibility and decision-making support to the retail business owners and operators.

Only by combining streamlined business processes, seamless cross-channel customer service, and personalized marketing campaigns can retailers expect to create buyer experiences which can combat the fickle nature of the modern consumer. Get in touch with our experts for more insights on how to overcome challenges in retail markets with our solutions.

Direct to consumer channels

While retailers are planning their stores for the future, manufacturers are increasing the challenges in retail through direct-to-consumer channels. This helps manufacturers to not lose any extra margin to the retailers. Furthermore, these channels enable them to collect data about customers, which allows them to engage with customers in a personalized manner, driving brand attraction and customer loyalty.

Control over accounts payable process

Retailers engage with several different suppliers. Manually managing the constant flood of invoices makes having control over the accounts payable process difficult for retailers. Such challenges in retail companies lead to a direct impact on the financial forecasting of the business and ultimately affect their bottom line. Partnering with industry players helps retailers to empower fewer resources to manage the accounts payable process while simultaneously increasing process accuracy, accelerating invoice processing, and optimizing payment timing to allow them to take advantage of vendor offered discounts.

Learn more about how Infiniti’s solutions can help overcome challenges in retail.

Close
Infiti Logo

Hello there!

Contact us to know more about our cost-effective custom market research offerings to support efficient market penetration, new product launch, and devise strategies to monitor and outperform your competitors.

Cookie Policy

The Site uses cookies to record users' preferences in relation to the functionality of accessibility. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice