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The retail landscape is fast changing day by day. Whether it be through the rapid shifting of consumer habits and preferences, the fast paced changing of technologies, and increased competition, one cannot deny that what might work today might be different tomorrow. While this all gives way to more power for the consumer, this presents an amazing opportunity for retail businesses.
The Retail Market
In 2019 alone, it is forecasted that the total retail sales will grow by 3.3% with $5.529 trillion while e-commerce sales will grow by 15.1% to $605.3 billion. Dubbed as the retail apocalypse, the effects of this are two-fold: this big rise and shift towards e-commerce poses a threat to the more traditional brick-and-mortar stores while at the same time it gives direct-to-customer brands and other niche retailers better footing in the retail market.
What does this mean for the retail market? Because brick-and-mortar stores are now being challenged, new trends such as having no cashiers during checkout and the rise of pop-up stores, are making retailers more creative in creating a modern retail experience for their customers.
In the Philippines, although there is an expected growth in the e-commerce sector with now currently at 1.5% of the retail market, there is still a lot of room to grow as most Filipinos still prefer to visit physical stores and prefer cash transactions as opposed to going completely cashless. Nonetheless, it poses an opportunity as the Philippines is a very tech-savvy population.
Why You Should Go Digital
Going into e-commerce is a good way to scale your brand as you can go beyond the confines of your brick-and-mortar store and expand your products and services without having to worry about locations and expanding. This way your online presence substitutes for your store itself.
Another upside is that because of how accessible the internet is, millions of people can potentially be the audience for your website or page, reaching a far wider audience and getting better opportunities. This is good for those businesses with a niche market as they can reach people easier without having to worry about foot traffic from actual customers.
As with anything digital, it is made convenient for the users as they would not need to travel to the store itself. This gives way for a whole new set of marketing opportunities with the likes of social media marketing, Search Engine Optimization, Search Engine Marketing (pay-per-click ads) and even e-mail marketing which can all be ways to promote your site. Companies that are embracing e-commerce marketing strategies will be benefiting from this growth, with the number of online buyers expected to be at $2.14 billion by 2021.
Into the Future
Given that e-commerce is a rapidly changing industry, it is important to understand where it is headed. Part of the appeal of e-commerce is its ability to personalize and tailor fit content for the users in order to better serve them. It is said that customers spend 48% more when they have personalized experience. Part of this is engagement and one emerging trend is the use of AI, assistants, and chatbots, in order to enhance customer shopping experience. These bots can take the place of humans handling various inquiries and processes, leaving you more time to do the actual managing of the business.
Having more interactive products and visuals also contribute in satisfying the needs of the customer to interact and examine a product further before purchasing. This bridges the gap for needing that in-store experience. Technology today allows for 3D imaging, augmented reality, and virtual reality to increase the experience of the product to the customer.
While going digital is an important step for your business, it doesn’t mean completely abandoning the physical store. Some companies are exploring the “brick and click” model that lets customers experience the best of both shopping experiences. Some may say that this model allows for a better rounded experience for the customers.
Other incoming trends include: focusing on the content as a means to create an audience, taking a stand on relevant issues, delivering on promises, and the importance of micro-moments to deliver value.
With the rate that technology is changing today, many businesses are thinking of newer ways to capture their desired market and win over their competition. There are countless opportunities out there and there is no better time to start than now.
What better way to start today than with iRepublic , a trusted digital agency that offers affordable websites, hosting, and digital marketing services to help kick start your brand online. Let us help you reach your customers online!
For inquiries, visit our Contact Us page or get in touch with our team at (02) 3 490 000 or email at info@irepublic.ph.