Retailing has undergone a huge transformation over theyears. From Baby boomers to Gen X to Gen Y buyers, everyone has seen a changein buying behaviour, and the mass appeals, tastes and choices of these buyersare evolving every second, thanks to the global culture transformation.
What seems to work as a store format, a couple of years agohave seen paradigm shifts in terms of competition as newer non-store formatsare constantly probing the retail consumer. Even according to Kotler's BlackBox Model, the environmental stimuli keeps influencing the buyer to probe intodifferent products and look for different, unexpected value additions whichwould not only satisfy, but also delight the retail buyer and provide him withan experience.
So what does the retail consumer do? He is suddenlybombarded with so many choices. A person wanting to shop, to enjoy the entireshopping experience would demand a little extra from the mall or store he shopsfrom. On the other hand the consumer, who wants maximum value at least possibleprices, would prefer a wider assortment of goods and a wide plethora of choicesto suit his everyday needs.
A retail consumer may even want to sit back and relax athome and do all the shopping for the months groceries. A working professionaldoes not have the time to buy a digital camera, so he orders it through theinternet.
Research shows that a retail consumer is willing to paytwenty five dollars extra, if he is extremely satisfied with the shoppingexperience. Hence retailing giants strive hard to give that extra delight toconsumers by providing innovative yet delightful experiences to the consumers.For example, according to a research conducted by Calif-based regional mallREIT Macerich, to identify what attracts more consumers, the study showed thatfountains can play an important role in increasing sales.
Fountains create an atmosphere which is attractive andinvites more consumers to enjoy the entire experience of shopping. There isalso a huge fountain outside Las Vegas Bellagio casino which is synchronizedwith musical tunes and attracts hundreds of shopper's every day.
Most retailers now understand this, and are striving hard tocreate a complete 'Shopping Destination' by adding innovative features like theseto create a differentiating factor among other retailers.
Additional tips to budding retailers as well as establishedretailing giants:
- Consumer delight is everything. Focus on consumer by providing him with value products at a convenient and well designed retail store.
- Mass customization is the way of the future. Organizations like Dell, Levis Strauss have showed an example of how effective it is to provide customized offerings to its consumers.
- Focus on differentiating with other competitors by providing a complete shopping experience.
- Use innovative techniques and store formats like pop-up retail, to target consumers who lead hectic lives and need an outlet for high-speed retail.
Retailing has been largely dominated by category killerslike Wal-Mart, Home-Depot, Starbucks, however with changing consumer buyingtrends and using innovative retailing practices, small independent retailerscan still survive in the marketplace, by differentiating their offerings andproviding a unique experience to consumers.
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Source:ezinearticles.com
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