Khaleej Times: Five mantras for retailers to live by today

Our local retail industry in the UAE has now evolved to become a mature market. Less than a decade ago, the exponential growth rate in the retail industry regionally was a world phenomenon. Our shopping centre owners and retailers lived through this wild ride. We now find ourselves in a mature retail market which means that all parties in the retail industry must evolve and do so quickly. Retail has always been about change and embracing that change fervently. Now more than ever in the retail industry, the pace of change globally is exciting and head-spinning at the same time.

1. Relevancy: In the retail industry, relevancy is all about continual reinvention. How important is mobile technology to retail? The wide-ranging technical capabilities of the mobile phone are only now in their infancy as this technology relates to the retail industry. As we all know, the penetration of mobile phones among the young population in the region is among the highest in the world. Retailers wanting to maintain close connection with their customers must ensure that the customer experience includes the use of mobile technology before, during and after the in-store experience, all delivered seamlessly.

2. Experiential events: Leisure, recreation, family times, entertainment and dining experiences are all part of our retail experience when we head to the shopping malls. We are looking for an experience which entertains us and that experience ensures our return visit. We text, tweet, Snapchat, Instagram or otherwise share our communication to our mobile, social media-savvy community of our retail experience and all in real time. Leisure and digital integration of the retail experience will offer a unique in-store experience and repeat visitation if done creatively.

3. Innovation by all parties: The Dubai Mall recently launched a new programme called ‘shop, drop and pick up/delivery’. This service allows for shoppers to shop for goods, drop the bags off with the concierge in The Dubai Mall and later pick up goods and have them dropped off to your car as you are leaving or even have these goods delivered to your home. Service through enhancing the customer experience is now expected. Retailers are also becoming attuned to the new reality. Supply chain innovation by retailers will provide a better experience for the customer. ‘Just in time delivery’ from the suppliers of new products in the region is becoming more efficient. Enhanced relationships with all stakeholders in the supply chain in the sourcing, purchasing and delivery of products displayed by retailers are also important to ensure rapid adjustments to the market demands.

4. Selective merchandise selection by retailers will become even more important as the retail market continues to mature. Retailers must continually research the demographic and psychographic profiles of their target market. Access to and utility of big data research will be more mainstream for all retailers. The analysis of the data of the shopping habits for each of their customer profiles will ensure greater success for retailers. They will be able to more reliably win over their customers because they have the most relevant assortment of products fitting the target market and be able to deliver these products to their customers in the preferred retail channel.

5. Constant contact: Research from MasterCard recently confirmed that customers are increasingly using website navigation to determine the best pricing, best product availability, sizing, colours and many other characteristics of the products before purchasing. Regionally, in 2009, statistics indicated that 60 per cent of purchased products were researched online before visiting the shops. Now, over 85 per cent of the products are researched online before purchasing the products, usually in physical stores. The results of this study indicate that retailers need a seamless experience. The seamless experience is called an omni-channel experience meaning that the customer values the ability to be in constant contact through multiple avenues at the same time – from the retailers’ website to exploring the products online to directing them with incentives with coupons or other inducements to come to visit the physical store to purchase the products.

The retail industry has always evolved quickly but never as quickly as it is evolving today. If you are passionate about your retail business and tireless in your approach to embracing new concepts for building your business, then the retail industry offers a lifetime of wonderful excitement and joy in building new relationships in ways you never imagined possible.

By David Macadam – Khaleej Times

Link to Article: http://www.khaleejtimes.com/business/retail/five-mantras-for-retailers-to-live-by-today