Page 4 - AeM_November_2019

RESEARCH, ANALYSIS & TRENDS

Hardly any industry is currently facing

greater challenges than the retail sector

In recent years, developments have taken place that are manufacturers and traditional dealers are lacking in risk
dramatically changing the role of stationary retail, putting -taking. They are in a dilemma because highly scaled
it under pressure and questioning its right to exist. and low-margin business models are subject to high
transformation risks. In addition, Internet players such
To date, most retailers have achieved revenue growth as Amazon and Alibaba dominate online commerce,
and profit optimization through scaling effects, which is growing more and more at the expense of
standardization and process optimization, less through traditional offline trading.
noteworthy innovation or the intelligent use of
technology. Overall, brick-and-mortar retailing still isn’t In plain language: most trading formats cannot adapt to
familiar with new IT technologies and isn’t expanding its the new situation due to a backward-looking
capabilities in this regard either. Stationary retailers have management, outdated processes and systems, a too
lost their closeness to the customer through this process broad range of services, a poorly trained workforce and
of change and have gained and expanded their market finally the missing funds. So, what about the future of
positions primarily through the price war. The attempts of trade and the trade of the future? What are the driving
brick-and-mortar retailing to counter the increasing forces, relevant success factors, and game changers?
pressure of new competitors from the digital world via
cross-channel / multi-channel solutions have brought a Customers need to determine their best strategy
visible turnaround in only a few individual cases.
One thing is clear: a radical renewal of existing
Competing with Amazon and Alibaba business models and systems is urgently needed. Brick
-and mortar shops only have a future if they invest
Massive changes in the availability of information, more aggressively in digitization.
technologies and communications have set new
standards for customer expectations, since traders can The alleged advantages of the traditional compared to
interact and sell to the consumer without limits. the online dealer, such as advice and nice shops, are
However, many retailers find it difficult to set the right myths. Much more important, however, is for them to
priorities given the almost infinite possibilities, focus on the expectations of their customer and to
innovations and trend changes. Besides all that, realize that the trading world is increasingly developing
into an integrated marketplace.
4 November 2019 - E-Commerce & Digital Retail Marketing