It’s hard not to notice how quickly retail has changed in the last twenty years, and when I read this article from SupplyChainDigest, it really got me thinking. What the brick and mortar retail world will look like in 10-20 more years is anyone’s guess. The traditional retail sector is transforming before our eyes, with a big impact on retail and consumer goods manufacturers’ supply chains in the end. The Wall Street Journal reports that through April 6, closings have been announced for 2,880 retail locations this year, including hundreds of locations being shut by national chains such as Payless ShoeSource and Radio Shack. That’s more than twice as many closings as announced during the same period last year, according to analysis by investment firm Credit Suisse.
Can Retail Coexist with Ecommerce?
There’s no question that consumer shopping habits are changing. Much of that is being driven by ecommerce, with online retail stores striving to win the war of being the highest ranking site on search engines. Do you run an ecommerce site? In order to be seen by potential customers, your website needs to be optimised for search engines. Not sure where to begin? Contacting an Online Marketing Company can help your ecommerce site to utlilise SEO friendly content to rise through the search ranks. There are other steps you can take to attract more traffic towards your site as well. For example, if your website looks professional and eye catching, potential customers are more likely to spend time browsing your pages. Consequently, if you need a website designing from scratch, or your existing website is in need of a refresh, try contacting a great website design company for support and advice. For any ecommerce website to be a success, choosing a reliable web hosting service is also fundamental. Not sure which one to choose? Be sure to do plenty of research online to find the best hosting solution for your needs. For example, if you use Magento, you might find it useful to check out some of these hosting providers that have been reviewed by Jamie. Change in the retail sector is being fueled by broader trends offline too. Consumer trends, such as a big drop in spending time wandering shopping malls, which are as a category in deep financial trouble, are also making an impact. Retail stores are trying a number of techniques to draw consumers such as “In Store Only Coupons,” but those efforts are not making a huge impact, especially because online shoppers can find an online coupon list after just a quick Google search. As more and more retail stores close and the retail marketplace changes, everything from product distribution, warehousing and manufacturing capacities to raw material needs will be impacted.
Consumer Product Manufacturers Need to be Ready for Changes in Retail
Consumer products manufacturers need to be prepared for these continued changes. Many processes and systems will need to be upgraded and improved. Many manufacturers are selling to third parties to sell their goods online and some are doing it themselves or through the retailers. Manufacturers will need the latest in system and business process technology to succeed. QAD can help tackle these concerns as well as future trends. Learn more about QAD’s cloud ERP solution built specifically for consumer products manufacturers. If you have any questions, please leave a comment – I’d love to discuss these trends and anything else that has to do with consumer products manufacturing with you!