Introduction to Marketing Strategies Of Retail Industry
As the pandemic of the century fervently sways the marketplace into a tailspin, the global retail industry in an enduring act attempts to strike back and sustain amidst the crisis.
Covid-19 and Retail Marketing
The unpresented disease Covid19 started occurring amidst the March of 2020 and had gained a full momentum shortly as the global market collapsed and was plunged into turbulence.
Among the victimized fields of businesses, the retail industry had faced the lethal brunt of it. A digital business news platform RIS conducted a poll regarding the COVID 19 and they discovered that
- 54% of business owners were heavily concerned with the “in-store” loss in sales.
- 15% were concerned with their inventory management failure.
- 15% were frustrated due to hiring and firing staff issues.
How Covid-19 Impacted the Retail Industry?
The Coronavirus left an inconceivable impact on the retail landscape in the following manners,
Blocking the Supply Chain Structure
With having a far and vast web structure of supply chain networks, the coronavirus impeded a majority of the operations, resulting in the breakdown of the entire chain. This resulted in the global economy is subject to a massive wave of damage.
Closing of Brick and Mortar Businesses
An overwhelming number of Brick and Mortar stores had to completely shut down their operations due to the widespread of the disease. This unprepared act led to a dramatic change, especially in the FMGC market.
Misbalancing the Supply and Demand Curve
The logistic network could be seen breaking down which eventually resulted in a drastic imbalance of the supply and demand curve. Since it was unprecedented, there was no strategy for effectively tackling the sudden market scenario.
Changes in Consumer Behavior
One of the most recent There was a considerable number of businesses solely relying on traditional and mediocre means of marketing and operations when the Pandemic happened.
The consumers were forced to change their behavior and this act killed the sales chart of the brick and mortar companies (both small and large) across the globe.
Creating a Need for New Tactics
The period of unexpected instability struck the society and this created a crucial need among the companies of all sizes to restructure their business, devise new marketing strategies, and foster a new relationship with their clients as well as vendors from the whole scratch.
The Real Reason the Retail Industry Collapsed
According to the economic experts at the Guardian UK, the retail industry could have minimized the damage in the initial stages of the pandemic due to functioning at least 40% of their dealings and operations online, which a vast majority did not. The businesses with non-essentials products should have developed more creativity and a contingency plan for anything bizarre as this Coronavirus.
4 Ways the Marketing strategy of the retail industry evolved
With no other choice left but to rethink their plan, the retailers across the market-implied the following 4 marketing strategies.
1. Recollecting In-Store Customer Data for Remarketing
One of the initial marketing strategies of Brick and Mortar was of recollecting the data of customers who had visited their stores previously and remarket them through digital and telecommunication channels. Since a bulk of companies were extremely concerned with their store sales, thinking of remarketing them through online or through SMS marketing was a key tactic in shifting the mediocre landscape.
2. The Strategy of Personalization
After recollecting data, the retailers embarked on building up a persistent relationship with their potential customers.
The creation of WhatsApp groups was the most common strategy where the retailers could update their customers regarding product updates and alerts.
The same marketing strategy was implemented for the vendors in order to manage logistics which were already limited.
3. Creating an Environment of Transparency
Consumer brand loyalty was primarily being based on trust during Quarantine. Because of such a shift, the first priority of every retailer was to create a system of complete transparency with their customers.
This played a vital role in strengthening customer relations as it created a strong sense of trust among the customers.
4. Targeting with Discounts
A common, yet much-needed marketing strategy. With the rise in unemployment, consumers were shifting towards more economical products/services.
Hence the retailers started giving discounts while some reduced their mark-ups for conversions. A British writing service also managed in gaining leads during the national quarantines students were in search of cheap dissertation writing services UK and US styles.(Ref:Law essay help UK)
What Have We Learned?
The Retail Industry had to adopt modern marketing strategies in order to keep the business afloat during this severe period. Hence the modern digital strategies are effective and should be implied by every company.