Tag: retail industry challenges

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%.

retail industry

The Age of Retail Revival: How Top Players are Adapting to the Changing Retail Industry Trends

The rules of retail are gradually changing. The success of retail companies no longer revolve around who can offer the lowest prices or a wider category of products. Rather, retail customer experience is now paramount to entice shoppers and persuade them to stay loyal to the brand. While some popular retailers are shutting stores to cope up with the losses incurred, other agile players in the market are embracing new retail industry trends and increasing investment in their physical space to get the desired results.

Although e-commerce sales are soaring, the apocalypse of brick-and-mortar is a concept that is far from reality. The fact remains that consumers love to gain a look and feel of a product before making a purchase, even though they can get it done otherwise through the click of a button. Top retail industry companies understand this behavior and are trying to set the bar high in terms of service and customer experience, in an attempt to outperform ecommerce companies. In this blog, experts at Infiniti uncover new rules for success in the retail industry.

The retail industry is transforming in important ways. Request a free proposal to know how we can help you identify these challenges and formulate strategies to survive.

Adapting to changing retail industry trends

retail industryCreating exceptional in-store experience

Recent studies show that it is more likely for customers to turn to competitor brands in case they face an unpleasant experience in a store. This includes lack of cleanliness, disorganized shelves, and unsatisfactory customer experience. Top companies have accepted such retail industry trends and have already started revamping their in-store facilities and taking efforts to enhance service provided to become more-experience driven and garner more customers to their stores.

Diversification

Retail outlets can no longer survive by only offering what they specialize in. Smart retailers have figured out that expanding their product lines or services is the future of retail business. Several top retail companies have already started venturing into categories apart from their core offering in order to give more value to customers and drive them to these retail outlets.

Adapting to new retail industry trends benefit customers and businesses alike. Wonder how you can stay updated with the retail industry trends and gain an upper hand in the market? Get in touch with our experts for more insights.

Building partnerships

There is no denying to the fact that ecommerce businesses will grow exponentially in the years to come. Entering into partnerships with e-tailers is a great way for brick and mortar companies in the retail industry to survive in the long run. For instance, some retailers have struck partnerships with ecommerce companies that lets customers return goods purchased from other retailers online. It is indeed a very clever way to draw a new demographic for retailers.

Transparent use of data

There is an abundance of customer data available with most of the established companies in the retail industry. Retailers must ensure that these data are put to use without invading the privacy of customers.

Learn more about Infiniti’s solutions for the retail industry

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.

Market Assessment

A Leading Fashion Retail Brand Curtailed Losses and Increased Revenues by 20% – A Customer Segmentation Case Study

Business challenge

Over the last decade, the retail industry has undergone incredible disruption, largely impacting how customers shop and what they expect and demand from retailers. Fashion retail is one of the most dynamic segments in retail, wherein companies have to keep a constant watch on the changing trends. A failure to do so would result in a considerable decline in their market share. Although fashion retail is a highly united industry, the owners of fashion brands may find it difficult to thrive in the fiercely competitive industry due to its ambiguous nature. As the pace of change in the fashion retail industry accelerates, the need to have an innovative and sustainable customer segmentation models have become imperative.

Recently, a fashion retailer based out of Central Europe faced a decline in their overall sales rate. They also noted a substantial reduction in the number of frequent and repeat buyers. The company, therefore, approached Infiniti Research to undertake a detailed analysis to better understand the European fashion retail industry. The client wanted to leverage our customer segmentation solution to examine customer behavior, identify segments with a high potential for losses, and devise a mechanism to better understand the changing customer needs.

Building a customer segmentation strategy is no easy task, but within the retail sector, it is quickly becoming a necessity. Request a FREE brochure to know how our solutions can help you build an ideal customer segmentation strategy.

Solutions offered and value delivered

Infiniti’s customer segmentation analysis included a study based on a combination of factors such as customer needs, purchase patterns, attitudes, and behaviors. The customer segmentation solution offered to the client helped them uncover lucrative, under-served customer segments. Furthermore, gleaning insights into the potential customer segments helped the fashion retailer to determine the profit potential of each segment by analyzing its revenue and cost impact. The unique customer segmentation strategy also empowered the client to differentiate their brand from the global competition. This, in turn, helped them break through the cluttered market space with a unique and convincing proposition.

Targeted and focused strategies are the key to survival in today’s competitive world. Learn how we can help you devise an ideal go-to-market strategy. Request a free proposal.

In a span of eight weeks, the client was able to transform their operating model into a more segmented, customer-relationship based structure. This helped them to improve their wallet share and increased their overall revenue by 20%.  Moreover, with the help of Infiniti’s customer segmentation solution and recommendations, the client was able to increase their customer retention rate by 2X.

Importance of customer segmentation

customer segmentation

Facing similar predicaments in your business? We’re here to help! Get in touch with us.

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Biggest Challenges in Retail Industry Right Now

challenges in retail industry

Customers today are no longer forced to make a purchase decision by comparing a few options that are available. Rather, they are now bombarded with dozens or even hundreds of options to choose from. Therefore, one of the key challenges in retail industry is for companies to differentiate themselves from the other players and consequently improve their visibility in the market. Furthermore, waning brand loyalty as customers tend to switch from one brand to another based on what best serves their requirements now proves to be a unique challenge for modern retailers. They now need to find innovative ways to appeal to both existing and potential customers.

In this blog, retail industry experts from Infiniti Research highlight some of the biggest challenges in retail industry this year and how reliable retail industry data coupled with effective market intelligence solutions can help oust such roadblocks.

We understand that businesses face several challenges in retail industry while identifying and curating high-value customers to develop marketing strategies and maximize profitability. Request a free brochure to know more about our solutions for the retail industry and how we help clients identify market trends, opportunities, and challenges in retail industry.

Challenges in retail industry 2019

Consumers moving to multi-channel buying experiences

Technology has been a major boon to retailers and customers alike, however, they also play a major role in propelling the challenges in retail industry. As consumers are seamlessly moving between online and brick and mortar platforms for shopping, they are becoming more open to retailers who can facilitate these transactions. So, companies that want to thrive in this sector must heed to such retail industry trends and focus on creating top-notch customer experience across all platforms.

 Demand for impeccable customer experience

Brand loyalty largely depends on the customer experience. The level of effort taken to enhance customer experience is directly proportional to the customers’ likelihood to engage in repeat purchases with a brand. However, this is currently one of the key challenges in retail industry as creating a significant customer experience requires retailers to dive-deep in customer details in order to understand their customer better. Providing personalized experiences by identifying customer preferences could contribute to delivering great customer experiences.

Siloed marketing infrastructure

Effective marketing today requires companies to engage with their target customers across various platforms. Multi-channel communications are essential in driving the creation of seamless customer experience. But this could also prove to be one of the major challenges in retail industry because with so many different channels customer data could be siloed. In case all the elements of the marketing department are not working in synergy, chances are that customers could be overwhelmed with conflicting or repeat messages.

To gain a competitive edge in the retail industry despite several ongoing trends and challenges, it is vital to adopt a data-driven approach coupled with the right solutions that can transform this data into meaningful insights. Request a free proposal to learn how our market intelligence solutions can help overcome challenges in retail industry.

How Infiniti’s solutions can help retailers overcomes these challenges?

Creating a winning proposition in today’s complex retail environment requires a superior business strategy, resourceful operations, attractive merchandising, targeted marketing, and the use of reliable technology. We provide strategic market intelligence solutions and help our clients identify challenges in retail industry and use their key performing metrics to facilitates quicker decision making and better customer service. Get in touch with us to know more about our market intelligence solutions for the retail industry.

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Financial risk analysis

Top 4 Customer Service Skills That Can Drive the Growth of Your Retail Business

The retail industry is witnessing constant changes and players in this industry are facing immense pressure when it comes to keeping up with the ever-changing customer expectations, maintaining customer loyalty, retaining and engaging employees, and digital disruptions. With the constantly changing customer behavior, meeting customer expectations is getting really difficult for companies in the retail industry. To meet customer expectations, it is highly essential that you provide great customer service as it is a vital element of business operations that can affect your bottom line as well as how your business is viewed by the public.

If your business fails to provide a great customer service, it is likely that you will end up damaging your brand’s reputation. High-quality customer service management is important for a growing or established company’s bottom line. Therefore, businesses need to realize the importance of customer service. They must understand that it is a virtuous circle that drives profits and allows companies to compete against rivals with more resources and funding in their pocket.

At Infiniti Research, we understand the impact that excellent customer service can have on your business. And to help companies excel in a highly competitive landscape, our team of experts has highlighted four best customer service skills that can drive the growth of your business and boost your ROI.

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IR24

5 Big Challenges Facing the Retail Industry

The retail industry is one of the fastest growing sectors in the world. With more number of retailers slowly expanding their business from brick and mortar to online retail stores, there is no looking back for players in this industry. But on the flip side, the retail industry is not entirely a bed of roses. Companies in the retail industry constantly endure various hindrances to improve their profits and simultaneously stay relevant in the market. One of the major challenges for players in the retail industry is to adapt themselves to the constant shifts and twists in the market.  Furthermore, savvy shoppers even tend to spend a lot of time researching their purchases – and consider the entire customer experience before actually making a purchase. With increased exposure to the internet and social media, retail customers are not gullible anymore and are spoilt for choice. This puts retailers in a ‘do or die’ position to survive in the market. But the hurdles for retail stores does not end here. We have curated five of the biggest challenges that companies in the retail industry need to pay heed to right now:Request Proposal

Top retail industry challenges

Digital disruption

Customer behavior is changing rapidly. While ecommerce has its effect on brick-and-mortar stores, the market trends indicate that customers prefer purchasing most products in-store. However, customers are using the Internet to do reconnaissance work – that is, search online for product information, compare the best prices, and identify complementary products. While e-commerce now accounts for approximately 10% of all retail sales, estimates by various industry experts suggest that web-influenced physical store sales are about 5X online sales.

In-store experience

Modern customers are extremely choosy owing to a large number of options they have in hand. What could differentiate companies in the retail industry from one another is the in-store experience that they provide the customers. Shoppers want remarkable experiences when they enter a store. They want to enjoy personalized experiences, interact with products, and engage their senses with creative sights, smells, tastes, and touch. Virtual reality, showrooming, and other experiential retail strategies can position companies in the retail industry at the top of their category when experiential retail is done well. Trailblazers like Sephora, Nordstrom, and Anthropologie serve as great examples for retail industry players to improve their customers’ in-store experience.

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