It is time for retailers to upgrade their business strategies to cope up with the demands of their buyers and increase their profit margin. It is advisable to introduce themselves to technology in this era of online shopping
FREMONT, CA: Grocery retailing is one of the dynamic and highly competitive industries, and the competition is becoming stiffer due to the implementation of advanced technologies. It has become essential for industry leaders to understand the mindsets of the consumers as the economy is apparently emerging from the downturn. However, if the grocery retailer wants to reform the competition in the coming years, they have to respond to four growing trends. The trends that the sellers have to follow are a permanent shift to the rise of technology-enabled shopping, value-seeking among consumers, format and merchandise innovation, and more significant online encroachment.
Grocery retailers have to rethink the strategies if they want to respond to the forces successfully. This means that the retailers have to evaluate their overall planned value proposition and the considerable capabilities that will differentiate them from their competitors.
The four forces will have a notable impact as the grocery retailers and manufacturers find the way undiscovered areas of retailing. The four trends retailers have to keep in mind and implement them successfully to achieve success in the market are given below.
1. Digital and Mobile Marketing
Digital and mobile marketing technologies can serve different roles for different retailers. It depends on retailers how they use the part of digital technologies to increase their profit. For example, mobile technologies can be used by hi-low pricing retailer for delivering their targeted manufacturer-funded deals. On the other hand, an advanced player may provide their customers with customized help or information on any new or unfamiliar products.
2. Deep Shopper Understanding
The retailers have to win their shoppers by faith and react to their ongoing behaviors. The retailers who understand their customers can make a difference in the market than others who don't, as it is essential to meet the demand of the customers. However, the policy may also necessitate enhancement in the shopper loyalty programs or expansion in the new capabilities around data analytics.
For some of the retailers' improvement in production and merchandise can be a path to success. The newly branded companies or private-label retailers can make some difference in their banners or organize some innovative sales that will create a sense for their brands in the mind of the shoppers and also make them unique from the others.
4. Multichannel Retailing
With the advancement of technology, there is a slow downfall of traditional grocery stores, and consumers are now more familiar to online grocery shopping. Every retailer must react to whether boosting the in-store experience of the consumers will defend the traditional business or creating an actual multichannel capability will do so. A multichannel retailer can integrate online, in-store, and digital mobile offerings, so that they can meet the customer's demand with the support from proper back-office systems and supply chain.