Retails Transformation Is On The Uprise
Today retail transformation is changing rapidly & dramatically. Driven by the big shift’s forces, consumers are becoming far more informed, & product choices are proliferating rapidly. Technological advances & public policy liberalization are contributing to new flows of information, knowledge, & resources. As a result, retailers face new pressures.
Lowered barriers to market entry are bringing in many new small players & fragmenting the retail landscape. Online marketplaces are transcending geographic proximity & expanding market demand for highly specific offerings. Small niche players can reach consumers regardless of physical location. Technologies such as on-demand fulfillment are changing how & where retailers hold inventory. New retail models are arising out of new technologies & new ways to connect with consumers.
Another opportunity for many large retailers is to become industry infrastructure providers. Because sourcing and procurement, inventory management, store operations, marketing, and fulfillment become more efficient as they scale. Established retailers can extend these capabilities to support smaller, more fragmented niche players.
Change is seldom easy, especially when the future is uncertain. Big changes, especially, require commitment and can attract organizational antibodies. To effectively scale new business models, established retailers should pursue small moves. Incorporating the most successful ideas as foundations for their evolving businesses.
The rise of better-informed consumers, along with product and niche proliferation, is putting pressure on traditional retail roles. The connected consumers who use these resources and communities are actively engaged. Through reviews, research, and co-creation, they are actively shaping the brand messages of the products they consume. At the same time, the supply role of retailers is changing.
When the future is uncertain, transformation can be difficult & can be met with internal resistance. At the same time, periods of uncertainty can offer tremendous possibilities for those able to choose a direction and shape the opportunity.