3 Changes Retailers Need To Make To Survive
Few industries are being disrupted as drastically as the retail industry. Pioneers of new business models, such as Alibaba and Amazon, are launching innovations in rapid succession, such as voice ordering and real-time pricing, while simultaneously building scale and driving down costs. More retail purchases are moving online, and a growing number of manufacturers now sell to consumers directly, cutting out retailers entirely. Making matters more challenging, these shifts are happening across practically every retail category – books, entertainment, housewares, clothing, food, financial services, and even energy. The retailers left standing are those that figure out how to treat disruption as business-as-usual in an industry accustomed to slow, strategic planning. Today, even long-established retailers are starting to set and deliver on selling strategies at the nearly real-time pace set by their online competitors. It’s either adapt to the new environment or step aside and make room for a competitor who can. To accommodate frequent, fundamental changes to business models, leading retailers generally follow three principles that have been developed through trial and error, often in the midst of disruption. Read more at Harvard Business Review.
