Performance of a country is related to the performance of its retail sector. The retail tale of romancing with the customers has now turned into a story of horror, about retailers fighting for survival. What are the mistakes commonly made by retailers, and how can that be avoided?
Retailers are not much ambitious regarding their growth plans now. Market today is filled with competition. Earlier, there was euphoria among the retailers to expand their business. The trend is now taking a U turn with them; postponing their decisions. Stores such as Reliance and Future Group have opened more number of formats, of which some of them have shut down, only a few are operating at limited locations.
businesses sometimes fail to focus on key factors while developing and
implementing marketing strategies. Centralized management of marketing process
and less or no control by local retailers are likely to the major reasons. This
may cause a delay or failure in their long time business establishment. As far
as the retail business is concerned, the devil really is, in the details. Lack
of awareness regarding these details, or ignoring them, will cause havoc to the
Retailers generally ignore keeping relationship with the local store and consumers. While opening a retail format, retailers attempt to maintain uniformity in the store appearance all across the nation in all their retail locations. This decision is backed up by the motto of creating strong brand awareness among the consumers. But this does not provide local flexibility. As the retailers are more focused on the brand awareness to be created on the national level, it is seldom possible for them to focus on the needs of local customers. These retailers are more focused, only in communicating their brand message to the local customers, that they ultimately forget the need of establishing a good relationship among the local customers.
Retailers give prior importance to the brand image at a national level, which gives very limited marketing control to the store managers. The store location must have good visibility and convenient access. Improper location would require more money on advertising to lure the consumer into the store.
Retailers need to be proactive regarding what they should carry in their stores; right design, color, and quantity of merchandise. They need to create specific images in the consumers minds.