Retail Sector Trends, Essay Example
1. What sets the US Retail Industry apart from other countries?
The U.S. is the world’s largest economy, with citizens enjoying one of the highest per capita income in the world. In addition, the U.S. culture encourages consumption lifestyle. All these characteristics represent U.S. retail sector with enormous expansion and profit opportunities but at the same time, also create highly competitive economic environment. This is why U.S. retail sector has to continuously reinvent itself to cater to the needs of diverse consumer groups and take advantage of economic opportunities. In addition, unlike other countries, many retail companies are publicly listed companies with enormous scale of operations and stores all around the country. Even though there are more mom-and-pop shops than large departmental stores and supermarkets, their combined sales pale in comparison to the retail giants.
2. In light of the economic recession in the United States, what major changes do you think retailers in the United States should adopt or have already adopted to stabilize their operations?
The major retailers in the U.S. have taken steps to make their supply chains more efficient and search the globe for the cheapest possible products. The U.S. retail sector has matured so U.S. retail companies have been searching for growth opportunities in other countries where income levels are rising and customers are increasingly demanding better products and services.
3. How does the US retailing landscape shape GLOBAL RETAIL Trends? Will we see a sudden shift in strategies in overseas markets because of the slowdown in the economy of the US?
U.S. retail companies are some of the largest in the world and lead the world in innovation in areas such as marketing, supply chain, and production techniques etc. As these companies expand overseas, they introduce the same techniques abroad that made them successful at home and in other western markets in the same place. Consumers everywhere want good quality products at low prices and U.S. retail giants have mastered the art through large-scale stores format. U.S. companies realize that growth opportunities are more abundant in rising economies such as China, India, and Brazil etc. and as they expand into these markets, they will also take into account the unique local characteristics to build goodwill and strengthen brand loyalty. Many U.S. retail companies have already been doing this in international markets and it shows that the trend of taking unique local needs into account will be here. Fashion brand Hermes has already introduced ‘Saris’ which is local women dress, in India.
4. In fashion retailing corporate growth is often times correlated to new store roll outs. If we look at fashion retailers in the US what trends do we see happening in order for these retailers to grow their business and increase store roll outs?
We have seen that fashion retailers now do not see store roll-outs as the only growth platform but have realized that internet is also an effective and quite cheaper way to expand operations. In addition, the fashion retailers have also become more attentive to the importance of strategic location as well as business partnership with companies that have already huge distribution networks. U.S. retail giant Target has already collaborated with many fashion brands to introduce Target-exclusive product lines.
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