The Retail Business Trends and Prophecies for 2022!
With the upsurge in the number of cases COVID-19 cases in 2021, the entire year has greatly impacted retail businesses globally due to continued lockdowns through the year causing a profound downfall in sales numbers for almost every merchant. As we entered the year 2022, we must first analyze the global market trends and understand the overall market dynamics after the pandemic has settled a bit, and how they impacted the overall supply chains globally.
- Pandemic’s Impact on Global Supply Chains – The lockdown disruptions caused a huge gap in demand and supply of products due to continued lockdowns worldwide. Customers were forced to shop from their confined rooms and had no option to try or test the products. The shipping delays, stuck consignments, and skyrocketing freight rates made the scenario even worse. Even global manufacturers suffered because of market uncertainty.
- Rising Inflation – In spite of various stimulus packages, unemployment support, and aids by the federal governments, the overall retail markets had seen a grim turnaround in 2021 because of lowered discretionary power of the customers globally. Customers have little to no money, and this has greatly impacted their spending behaviour with the online shopping remaining the only option to make a purchase.
- It’s Safer to Buy Online – Due to the continued COVID precautions and the fear of becoming a victim of the virus, people switched to online shopping which allows them for no-contact deliveries, local pick-up and drop options, easy online checkouts, and many flexible paying options. Retailers suffered greatly as they failed to offer such flexibility and have no infrastructure in place to support such initiatives.
- Overall Increase in Average Selling Price – Across the industries, a general trend of increase in overall average selling price was pretty much noticeable where the manufacturers shift their focus towards high-profit yielding products. As a result, a dramatic upward increase in average selling price was seen that is up by almost 25% for many products ultimately lowering the overall demand.
- Need for Newer Point of Sale Options – The retailers across the industries needed to change their point of sale options using the newest technology. As such, the retailers who failed to make timely upgrades to their POS options were greatly impacted and suffered losses.
Prophecies for Running A Successful Business in 2022!
With innovation in technology, many retailers who were able to implement timely changes to their overall operations have been able to see off a very challenging year 2021 and survived. Others unfortunately succumbed to the pressure and gave up. A never-say-die approach has become the need of the hour. It’s time to make amends in your business strategies and give them a new flight of air in year 2022. The question is what to do? Here are some top strategies to help the retailers modernize and innovate their businesses that will get them back into running a profitable business:
- Hybrid Retail – Due to the dramatic shift in customers’ buying habits, it is high time to offer more convenient shopping options for an overall new shopping experience. Take your business online and consider opening many outlets for online sales.
- Time for Automation – Try reducing the manpower by having machines work for humans. Embark on the use of technology, gadgets, and devices that can interact and interoperate to augment your operations.
- Use the Power of Social Media – Collaborating with influencers, sharing vLogs, YouTube explainer videos, live streaming on Facebook, and posting Reels on Instagram is a great way to lure your customers.
- Augmented Reality & AI – It’s time for robots being put to use to enable your customers interact with your brand and products virtually.
- BNPL – Adding the buy now and pay later option will strengthen your brand value and help your customers avoid digging deep into their pockets.