Tag: omnichannel retailing

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.

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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%.

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.

Retail industry analysis

Market Scan: Retail Industry Analysis and Market Updates

The retail industry is increasingly colliding with adjacent consumer-focused sectors, as a result, the industry continues to undergo constant disruption. Amidst all the retail industry trends and changes, one thing that remains consistent is the fact that consumers are becoming more powerful and retailers are trying to do all it takes to meet the changing customer demands. Last year left the retail industry with a lot to digest including a strong U.S. economy, the holiday season that delivered record-breaking sales, some high-profile bankruptcies, and other global trade and economic challenges. Our retail industry analysis reveals that although in 2018 the retail industry was bolstered with a strong labor market and elevated disposable personal income; the economy may face some headwinds this year. This means that 2019 will be a year of transformation for retailers and they will require to make some bold moves to make distinct space for themselves in the market.

Our retail industry analysis has helped several global brands understand their current market dynamics and strategize their moves to outperform their peers in the market. Request a free proposal to know how our solutions can help your business.

Retail industry analysis 2019

Retail industrySupply chain as a differentiator

Our retail industry analysis reveals that retailers are increasingly leveraging supply chain to differentiate their services. However, a major challenge here is to make the supply chain more predictable, less costly, and faster. Top companies in the retail industry believe that supply chain improvements can be a significant growth driver for the future. Rather than investing in retail industry trends like automation and smart packaging, it is important for retail companies to now think about using wider supply chain strategies for accumulating long-term competitive advantage.

The changing retail value chain

The value chain across the retail industry is becoming increasingly compressed. Our retail analysis experts have identified that several retailers are accelerating their merchandise cycles and moving their supply chains closer to their target customers. Retail companies are also making efforts to deploy advanced technologies that improve the process of connecting with their customers.

Moving away from transactional thinking

Earlier retail businesses revolved around isolated transactions where customers were bombarded with discounts and offer messages, the primary intent being to increasing sales. Today, retail brands are highly focused on delivering exceptional customer experience and are also using it as a tactic to compete better in the market. A retail industry analysis by experts at Infiniti Research revealed that a good majority of brands are using customer experience as a strategy to boost both their online as well as in-store sales. This is one of the primary reasons why retail giants like Walmart is thriving despite several others shutting shop. The company has rolled out several initiatives to streamline in-store customer experience by using advanced technologies like touch screen, search kiosks, and allowing customers to use mobile phones to scan products. Several other top retailers are undertaking similar measures to redefine the shopping experience for customers.

We live in the age of customer-centricity where your customers expect fluid, delightful, and useful experiences from your brand. But do you have what it takes to deliver this? Request a free brochure to gain insights into our service portfolio and learn how we can help your business better under the needs of your target customers.

Pop-up luxury retail stores

Several luxury retail labels are trying to lure millennials and Gen-Z customers due to their shifting priorities and heightened spending trends. Earlier, a pop-up was merely seen as an interesting concept that allowed brands to ‘test’ a retail presence or launch a new product. It also helps generate social media buzz, although short-lived. However, the recent evolution of pop-up fashion stores holds greater intrigue by offering fresh concepts on constant rotation. They are now used as a means to grab customer curiosity and engage with them. In an age where social capital goes hand-in-hand with monetary profits, such initiatives become highly useful for brands.

Nurturing post purchase

In a move towards achieving customer centricity, retailers are giving increased importance to last mile customer experiences. Companies are even going to the extent of acquiring delivery platforms to fulfill their delivery obligations on the same day and promote customer delight. Post purchase nurturing is a long-term growth strategy aimed at giving a better success rate in the future.

Gain more insights into our solutions for the retail industry. Get in touch with our experts.

omnichannel strategy

Creating an Ideal Omnichannel Strategy: What Businesses Must Know

What is an omnichannel strategy?

The consumer path to purchase is no longer linear. Instead, their shopping journey has many touchpoints, both online and offline. An omnichannel strategy refers to an approach to sales that seeks to provide customers with a seamless shopping experience across various channels. Today, it has become increasingly important for businesses to operate on both online and offline channels in order to gain a better foothold in the market and to prevent themselves from losing out on important local sales leads. The bottom-line result of such a strategy is immense, as businesses that provide an omnichannel experience achieve greater annual customer retention rate, compared to companies without an omnichannel strategy.

Planning to enhance your retailing strategies? Request a free brochure to know how you can leverage our solutions to formulate the right go-to-market strategies.

How to create an effective omnichannel strategy

omnichannel strategyOmni channel retailing is a great way for companies to enhance their customer experience and promote better business growth. Modern customers rarely depend on only one channel (online or offline) to make a purchase. They tend to shift between both these channels. This makes it vital for brands to ensure that they invest in an omnichannel strategy for their business. Experts at Infiniti have curated some key steps involved in creating an excellent omnichannel strategy:

Discover where the audience is

A company’s omnichannel strategy should begin with a clear idea as to where their customers are. Companies must identify which platform their customers frequent and the medium/devices that they use the most. The goal here is to have a clear idea as to where the target customers hang out, and where they normally shop.

Convert touchpoints

Converting all the touchpoints into shoppable ones is the key to omnichannel strategy. Taking care that customer has a memorable shopping experience irrespective of how they shop is the key here. Identify what other channels can be leveraged other than the offline and online stores to garner sales. For instance, several brands are now using social media channels such as Instagram and Facebook to engage with customers and even lets them shop through these channels.

Ensure smooth transition

Brands that have both online and offline presence must bridge any gaps that exist between the two channels. The ultimate goal here is to ensure a smooth transition between transactions occurring on both channels. For example, customers can be allowed to place their orders online, and then pick them up at the brick-and-mortar store of the company. This will ensure an enhanced customer experience as customers can save a lot of time.

Keeping up with the changing customer demands can prove to be challenging. Request a free proposal to know how we can help you stay updated with the market trends and build agile strategies to meet the changing demands.

Omnichannel strategy vs multichannel strategy

Multi-channel and omnichannel strategy, though quite similar, aren’t exactly the same thing. So, what is the difference, and what is its importance to retailers?

Earlier, multi-channel selling in retail took two forms:  in-store and mail-order catalogs. However, a multichannel strategy in retail now takes several forms including brick and mortar, pop-ups, catalogs, telephone, online store, social media, mobile apps, and third-party online marketplaces. Multi-channel retailing strategy involves selling to customers through both traditional offline outlets like brick-and-mortar locations as well as online outlets.

Omnichannel strategy, on the other hand, includes more than just the transactional channels, it refers to every interaction and touchpoint customers have with your brand. Omnichannel strategy in retailing is a more holistic approach to understanding how all of the various entities, interactions, and transactions work together to create a singular experience.

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