Table of Contents
Introduction
In recent years, developing economy has varied dramatically retail industry in the world. Beside that globalization has accelerated retailers to ameliorate practices for serving customers’ diversified & different demands. Current young generation of shoppers has numerous choices to purchase favorite products from any channels. According to Reinartz, Dellaert, Krafft, Kumar, and Varadarajan (2011), “Retailing innovations that are responsive to the characteristics of distinctive national markets and broader aggregations of markets such as mature, emerging and less developed markets are critical to the success of global and globalizing retailers”. The primary aim of any business is subject to attract potential customers and retain existing ones. A steady flow of new customers will contribute in the growth of your business significantly
Through the essay, retailers would discover three of practices for approaching customers, find comprehensive strategies that enable invention in order to maintain competitive in short term & long term business war as well.
Store Layout & Displaying
Setting up an effective layout is indispensable to drive customers into your retail store. Successful store designs use layouts and floor plans that encourage customers to walk past a high volume of products, keep browsing and buy products. An effective store layout directs shopper to where retailers desire them to go, generates interest and can potentially increase sales volumes. The threshold area is the first impression when the customers enter the store to enjoy shopping space. Therefore, signage, lights, color… are key factors to attract shopper’s view, make ones comfortable as well. Behera and Mishra (2017) state that the store layout format is one of the key considerations for its prosperity, and hence, a substantial amount of time, application and labor goes into defining the store outline. Retailers utilize appropriate retails format to impact consumer’s floor movement.
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It is a known fact almost customers will unconsciously turn to the right when entering a store; hence, this location will influence and stimulate customer’s ability of buying choice. It means the retails must select cautiously hot items, best price to display & show up in the eyes view of customer.
Displays are a strategic facing of retailing that can help catch up customers, maintain one’s interest, and augment sales. Visual merchandising aid to be constantly concerned with customers. In addition, effective products displaying draw potential customers to your store. Items in tidy arrangement, coherent, clear ISP (illustration selling point) is plus point that assists to conquer even fastidious clients. According to Michael and Hefer (2014), the aim of the retailer to use visual merchandise displays to draw customers in the store by means of window displays and then through visual merchandising displays to create or increase sales.
Good displays appeal to both the desire and the soul of your customers. Once, retailers have attracted potential customers in to store, one can arrange SKUs (stock keeping unit) in suitable order & direct them towards specific products. Displaying in gondola end is one of the best ways to introduce affordable items with customers where most customers stop to keeping an eye in buying selection. Conventionally, products displayed there is always cheap in customer’s mind. Displays according to Planogram can help the retailer to control out of stock and double display absolutely. It means that customer also can recognize a product that one need is out of stock or available in store in order to be back for buying or not in somedays.
To maximize profit, the retailer should place high-profit items in high traffic areas and demand items in low-traffic areas, place high-demand products at the back to draw customers through the store.
Promotion & Pricing
Customers in nowadays’ dynamic economy have high needs, furthermore, shopping behavior is continuously changeable significantly. It is critical to comprehend promotional offers & good price policy are two of key factors to purchasing decision.
Promotions is an essential ingredient of marketing plan to make customers satisfied and to attract new ones as well. According to Khare, Achtani, and Khattar. (2014) “Price promotions and discounts have utilitarian and hedonic value for consumers. They encourage consumers to purchase products that offer rebates, price offs, or gifts”
Loyalty is a good promotional program for retail consumers to recall customer to increase frequency. Taking advantage of buying history and customer insight data to pull to store by effective communication via SMS, email, application…whenever retailers have good caring to membership. Member day, cashback, discount % for the member are several measures to stably increase sale volume. More and more consumer await businesses to reach them with personalized offers instead of plain promotion. If sale drops down every Tuesday, offer member free special gift when buying on this day. Showing up SMS to get a deep discount also is caring way to increase loyalty member.
As a retailer, one perhaps already know the strength of discounting products to increase demand & buying power. Promotion pricing affects consumer psychology in retails. One may have heard about the power of ending prices with the number 9. Researchers have recognized that items priced at 599 vnd sell more than the much cheaper price point of 600 vnd while the balance is only 1 vnd. The percentage sale off (e.g. “10% off” or “49% off”) is one of the most widespread and efficient types of promotions. Retailers can apply this for clearance promotion, or in order to increase sale in effectively short time & quickly. Buy one get one is another general one. This promotion can be applied in two ways: buy one get one free or buy one get the 2nd item % off.
Bundling items is one of great methods to generate a higher perceived value for a lower cost that clients have a hard time staying away from. Whether it’s a ‘buy two, get one free’ deal or a ‘2 for the price of 1’ special, this tip is good for making customers experience that one is receiving more for what ones is paying. As a reward, this is a huge draw to then incite those customers to buy higher priced items once they’re in your store. Using this tip will make sales increase remarkably
Offline to Online
Digital retail was figured as the competitor of the traditional one. However, the two methods of business are considered as compliments, because retailers recognize that an integration of online and offline channels brings out much higher turnover than one channel stands alone. According to AL-Ghaith, Sanzogni & Sandhu (2010), Al-Salamin & Al-Hammad (2014) online channels have played a vital role in our daily life as people can communicate online to a person who is at a distant place, can send emails at any time, can search information, purchase things online, and even can play games online. At present, online shopping has been broadly acknowledged as an approach to buying services and products (As cited in Alatawy (2018))
Conventionally, offline store of 10,000 m2 has 30,000 SKUs. In the meantime, online platform such as Amazon.com, Alibaba.com… they own quantity of SKUs reaching 350 million by collaborating with numerous partners in the world. In order to have number of SKUs equivalent to online, dimension of offline store must be increased up to one hundred times. Certainly, it is impossible. Consequently, utilizing online to take advantage of offline source is best competition in digital age.
Retailer should integrate different channels to be no-frontier platform where shoppers can experience in the most convenience. The mixing of physical and digital experiences could permit customers to check for stock in-store and online, and order without having to wait in a checkout line. The chance for brick-and-mortar stores to salvage newest technologies are unlimited, and the customer experience must be the priority. Online communication is connected better with customer for retailer. Because customer is segmented them into different groups based on the personalized information. Customers will receive information and services that are targeted to them, which brings about more efficient support while at the same time avoiding wasted time and money on unnecessary service.
References
- Behera, M. P., & Mishra, V. (2017). Impact of store location and layout on consumer purchase behavior in organized retail. Anvesha, 10(1), 10-21.
- Reinartz, W., Dellaert, B., Krafft, M., Kumar, V., & Varadarajan, R. (2011). Retailing innovations in a globalizing retail market environment. Journal of Retailing, 87, S53-S66.
- Michael, C. C., & Hefer, Y. (2014). Visual merchandising displays effect – or not – on consumers: The predicament faced by apparel retailers. Journal of Business and Retail Management Research, 08(2)
- Khare, A., Achtani, D., & Khattar, M. (2014). Influence of price perception and shopping motives on indian consumers’ attitude towards retailer promotions in malls. Asia Pacific Journal of Marketing and Logistics, 26(2), 272-295.
- Alatawy, K. (2018). From offline to online: Do Saudis change their information search behavior? Paper presented at the 15-27.
