Essay Example on Current Trends in the Retail Industry

Introduction

The retail industry has experienced high conversion over the last decade, and the trend continues to unfold rapidly. With the rapid change in technology, consumers no longer go out shopping, but they do so from wherever they are whenever they wish. Today's economy is being led by Millennials and Gen Z, who are interconnected with multiple digital devices and whose taste is changing from products to experience, the turnaround time for response and delivery reducing to almost immediacy. The retail industry must adapt to the new changes led by technology advancement, consumer tastes, and preferences or be faced away in the market. The following trends will impact the way retailers operate and define their success or survival in the market.

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Experience-Based Brands

Millennials are shopping with their heart and not their minds. Their preferences are changing by emotions and tastes of products based on the company's social factors and responsibilities, thus improving the way companies brand their products and present themselves to customers. Companies are now engaging clients outside the traditional structures and are becoming cultural-based and are equating their internal culture to the outside personality to position themselves to the world. Attention has now shifted from product-based brands to preference-based (Schroeder, J. 2009, 123-126). As technologies continue to emerge, retailers industries are now applying augmented reality and virtual reality to add more taste to their traditional stores and bring the generation Z closer to their products. For retail markets to survive, they will thus have to consider whether their image offers a culture that meets the changing taste of consumers.

Multi-Channel Strategy

The rise in technology has made today's retail market to shift their online presence to multi-devices. Having a website alone or a single social media account won't guarantee ant sale nowadays. A study has shown that digital customers own four interconnected devices on average (Chyi, H. and Chadha, M. 2011). As a result of this, one may see a product on social media such as Facebook, follow it on Instagram and go to the product's website to close the order. Companies and retailers will, therefore, need to have a presence in different channels and offer different experiences in each device. Brick-and-mortar stores have also re-emerged and are and going closer to the consumers as opposed to towns. To succeed in the current industry, one has to maintain a multi-channel approach with a touch to convert leads to customers.

E-commerce Immediacy

As E-commerce grows to become a more popular mode of business, and as technology continues to advance, online consumers have become more impatient. They look for immediate response to their queries and demand quick delivery of their orders. Most retailers have an online presence and are offering comparable prices, and therefore, the remaining window for the competition is the turnaround time. Companies with interactive online stores, where customers' queries are replied immediately and whose products are shipped within the shortest time to customers are having more sales as compared to their competitors who will take days to respond to customers (Jones, P, and Comfort, D. 2019). As a result of this, retailers are required to have different platforms for engagements, have dedicated customer care personnel, update their inventory in real time, and have ready shipment means to their customers. Some companies have even resulted to using drones to delivers faster products such as drugs to their clients.

Expand Channels to Emerging Markets

Technology has made the world a village globe. Some markets which were closed some time back due to cultural and religious barriers are now available in the click of a button (Luo, Y. and Rosalie, L. 2007, 481-498). About 3 to 5 billion people are expected to have digital platforms by the year 2020. Companies will, therefore, need to apply a digital approach to close the barriers and tap to the growing online market. The Alibaba group, for instance, is expected to open markets in Australia, India, and Europe to tap to online market worthy of over $3 trillion. It, therefore, proves the untapped potential and market that retailers can take advantage of and expand and scale their businesses. For retailers to survive in the current competition, they have to look beyond the current market and consider going global.

The retail industry is therefore faced by the broad market to tap on by either rebranding their products to meet the customers' specifications, applying multi-strategy to expanding to the new markets but the underlying factor in all of this is the technology. The industries which will, therefore, embrace themselves with modern technology and strategies and be able to predict and prepare for trends in advance will survive the stiff competition (Pantano, E. 2014).

Currys Pc World Marketing Strategy

SWOT Analysis of Curry's PC World

SWOT analysis has, for decades, been used to understand better any organization marketing strategy and how it is performing with its immediate environment. It applies the principles of understanding the strengths weaknesses, opportunities, and threats that surround any organizations strategic planning. An organization may be making surmountable profits while at the same time losing market share. It is therefore imperative to examine how Currys PC World performs with its environment of competitors and government legislation. In a society where electronic devices remain central core to our lives, Currys PC World has continued to stay afloat in business by selling from computing white goods to mobile phones that many customers reported being of high quality with proper customer service. The impervious trend of making huge profits has come with a price of shutting down many branches and deciding to sell goods online.

Strengths

This explains Curry's PC World interaction with customers, suppliers, and utilization of its network resources. Power of the organization is assessed according to how it deals with the external environment as the competitors. Curry's PC World is the largest computer electronics company in Europe. The company has a strong street presence. The company boasts of an abundant supply of its electronics through online platforms. It has also been recognized as having one of the best customer services when compared to how quick and rapid it responded to complaints through Facebook and warranty related complaints. It also has a strong domestic base of customers in the United Kingdom.

Weaknesses

An organization does operate in seclusion; they work in an environment where they are faced with legal and economic constraints. These, in turn, limits the expansion of any business to other parameters as such is Curry's PC World. The company faces stiff competition from other electronic online organizations that also provide delivery of purchased goods. The company also pays its employees on incentives and massive commissions. These leads to competition between its employees, thus foul play and customer dissatisfaction. The government also passes legislation that saw the electronic shop close most of its shops and decide to sell online shops. However, the move to trade online electronic goods allowed the company to make enormous huge profits.

Opportunities

The company boasts of a two in one Curry's and PC world which gives the loyal customers choice. The move also attracts new customers. Apple products are getting global attention and also, uses Curry's distribution services. Promotes the distributing company more. The alliance has proved as a strong strategic move and as it is given the contract to sell and launch many of Apple products in its stores.

Threats

Due to its traditional structure, the company has had a contradiction in terms of customers' perception. The customer remains as the single essential part of any organization, and their satisfaction ensures the company stays afloat.

PEST Analysis of Currys PC World

Political Environment

The political environment includes the political structure in which the company operates. The legal structures also affect the way a company interacts with its environment. The government imposes laws and regulations which affects a company's operations. Consumer protection may also reduce a company's; expansion as it is constrained to only operate under strict rules. The United Kingdom is facing a recession in its economic activities. The recession may make foreign investors shy away from adding extra financial capital. The move has, in turn, led to Currys PC World, reducing its market share.

Moreover, it had to reduce the number of employees to increase their market share. Loss of jobs minimizes a company's' reputation as people lack job security. David Cameron visit to India was to improve the trading relations between the two countries these saw the company share capital increase thus.

Economic

The U.K government increased taxes, thus disadvantaging the company. The country also faced a slow economic growth, which in turn was also repelling investors from tapping in more capital.

Social Environment

Apple Company made news by incorporating Currys Company to distribute its new devices. The social environment, which includes a community's norms, remains a threat as the company has to improve its image to appeal to a broad customer spectrum.

Technological Environment

Currys PC World is at the forefront of keeping up with new trends. The challenge remains from other investors that are more advanced in terms of technological advancement.

Recommendations

In a world where technology changes fast and new companies with better techs launched daily, Currys PC World has still maintained its position as a tech giant. The company recorded a profit increase due to the following factors, including improving its customer relations to appeal to a broader market.

The company launched new online platforms for customers to order electronic goods online. The move allowed the company to meet new customers while at the same time saw the closure of many physical

Customer satisfaction remains crucial for any company, whether it outsources its primary distribution functions to other companies involved in the business. Recent research by IRUK ranked Curry's and PC world among the top in terms of addressing a customer's query. The company also receive meticulous awards in giving its customers refunds which other companies consider unprofitable or refuse to refund.

The company's pricing policies were also in the bucket list as customers compare the different prices to make purchases. Curry could improve its price though separate pricing to reach out to other people who are willing to make purchases but remain in inaccessible areas. The company can include free delivery and a small shipment price to other customers who buy goods from other areas where they do not have physical offices.

Extensive research is also needed to ensure the ever-changing customer needs are addressed. The social environment requires time to time changes since the advent of technology has seen the people change their tastes and preferences daily depending on current trends.

Currys PC world should also be involved in providing solutions to day to day problems. Many electronic enterprises offer new products, thus fail to meet customer needs. The move may due to inadequate research on market analysis. The method would be achieved if the store personalizes their products; thereby, customers get attached to their products.