Retailers must innovate and embrace new technology to capture consumer spend in the post-recession era, said a panel of experts (including chairman of Marks & Spencer, Sir Stuart Rose) at the World Retail Congress in Berlin in October.
Retailers have got to be more efficient, said Rose. Efficiencies can be made through technological advancements, better products and making sure consumers can easily get their hands on what they want. Rose added that in order for consumers to be confident, businesses have to prove they’re confident too.
Mindy Grossman, CEO of HSN, expanded on this and said that in the current economic climate, retailers need to have clarity of branding and be willing to invest in new technology. She believes it’s also important that retailers are able to understand the consumer-centric mindset and are able to target them in a way that engages them, particularly when interacting online.
Foodbev.com, for instance, has seen substantial incremental growth. Website growth since March 2008 compared to October 2010 is 232%, while social network growth in 2010 is over 23% month-on-month.
Phillip Schindler, vice president of Northern & Central Europe at Google, described the internet as a ‘revolution’ and said with 1.9bn people online, retailers need to harness the opportunities. He said the amount of data online has exploded, and most consumers now access that data via searches. He said: “Over 60% of retail sales are significantly influenced by what people are doing online.”
The use of mobile phones is also crucial for retailers, said Schindler. 30% of US adults have used a phone in-store to compare prices or look up information. “The mobile phone is the next wallet,” he said.
Rose added, “You have to treat online as your friend, and ignore it at your peril.”
He said that retailers need to be better with technology and that they have a lot of work to do on product innovation. He concluded by noting that consumers want endless options, so “if you’re not in the options game, you’re a loser”.
Claire Phoenix is managing editor of Beverage Innovation magazine. Subscribe here.
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