WELLINGTON, Sept 28 (NNN-AGENCIES) – The traditional retail model is changing, with digital technologies disrupting retail supply chains, transforming operational processes, and revolutionising how products are marketed and sold, according to a new research from Westpac’s economics team today.
Westpac NZ Industry Economist, Paul Clark, said, these changes are also evident in New Zealand, although somewhat lagging and on a much smaller scale than in other developed markets.
Clark said that given these changes, there are four key things retailers have to get right to be successful.
“Firstly, they need to understand their customers. That’s old hat for many retailers, but with the proliferation of data sources and increasing sophistication of analytical tools, understanding customers has never been more important for retailers seeking a point of differentiation,” Clark says.
“Secondly, in a world where device and channel use is expanding, retailers need to be everywhere their customers are. For most that’s likely to mean a shift in channel maturity, from single to multi- to integrated- or omni-channel retailing.
“Thirdly, retailers also need to be able to sell the experience of shopping. Providing a seamless customer experience, through omni-channel retail is part of that. So too is the repurposing of bricks-and-mortar stores, away from product distribution to “showrooming,” where consumers can test products in-store before purchasing online.
“Finally, retailers need to improve their responsiveness to customer demands. That means, a sharper focus on maximising operating efficiencies. It also means moving away from linear supply chains to more flexible supply networks, and a shift away from “off the shelf” to “on demand” product availability. To that extent, some retailers are likely to move downstream, promoting brands, taking orders, and leveraging off supply partners to deliver “on-demand” to customers.– NNN-AGENCIES
