5 Trends transforming the retail industry
The retail industry is a versatile industry with interesting and dynamic factors influencing it. In Pakistan, the retail industry is even more dynamic because of various factors leading it. The transformation of this industry is mostly driven by the demand and seasons.
Since the retail industry is a huge industry that covers a major part of Pakistan’s economy, transformation is driven by a vast range of internal and external factors. With a population of 220.9 million people, Pakistan is a huge market for the retail business to boom.
New concepts, marts, malls, markets, eCommerce stores, and other selling approaches are used in this industry. Because of its size, the competition is very high.
In this article, we will discuss five trends transforming the retail industry.
Transformation of the retail industry.:
The retail industry in Pakistan is transforming as per the market trends and advancements. The major factors leading the transformation are of two types; internal and external factors. In this article, we will discuss only external factors to make this article precise and brief.
- Market volatility
- Supply chain disruption
- Rise of labels
- Omnichannel acceleration
- New technology
1. Market volatility:
After the COVID-19 pandemic hit the world, businesses across the globe were harshly affected by the situation. Lockdowns and travel restrictions affect the productivity of businesses across the globe. The retail industry is among those industries that are worst affected by the pandemic.
Regardless of what the pandemic situation did to the industry and consumption pattern the retail industry manages to sustain the situation. Retail businesses adopted different approaches to managing these situations.
Throughout the era, new strategies were developed and used by retail businesses to engage customers in tough times.
Market volatility transforms the working approach of retail businesses across the globe. Moreover, even customers are getting used to such situations and they are also transforming their consumption habits.
2. Supply chain disruption:
The supply chain is the backbone of the retail industry. Any disruption in the supply chain can cause severe disruption in the retail industry. Travel restrictions and lockdowns cause severe disruptions in the supply chain that affected the retail industry with a shortage of goods.
The question is how can supply chain disruption become a trend in transforming the retail industry. As we all know necessity is the mother of invention, this principle works here as well. This supply disruption makes the world realize the vulnerability of our supply chain.
Now, new and dynamic supply chain models are used to manage such problems in the future. ERP software plays its role in these models. Because automation and forecasting is an important factor that can help the supply chain standstill in hard times and ERP software has all such features.
ERP software is integrated with supply chain management modules that help retail businesses to monitor their supply chain. Whether it is about making products available throughout the chain or managing the inventory ERP software keeps an eye on all the supply chain issues.
3. Rise of labels:
The transformation of the retail industry is backed by many factors, the rise of labels is one of them. During the COVID-19 pandemic, the consumer’s behaviors are vastly affected. The primary reason for the change is the shortage of inventory.
To explain this in detail let’s take an example, a family used to buy their groceries from a famous brand of marts. When a pandemic hits the economy and the government announces lockdowns people rush to the brand. That bulk buying causes a shortage of inventory. When this family reached its favorite mart they did not find what they needed. For that reason, they search for any store that has the things they need. The family found a store at the end of their colony. A small store owned by a man who lives by the road. That store is a private label or single store brand.
During the pandemic, such labels rise to new heights. Customers change their brand loyalties and discover new options. This factor leads to a new transformation in the retail industry.
For small labels that receive the immense inflow of new customers had to use newer and advanced systems to sustain those clients by offering them better services. ERP software played an important role in helping retail businesses in managing and sustain their new clients. ERP software helps businesses to manage their customers’ data, manage their human resources, manage their supply chain and inventory, and manage their financial resources.
4. Omnichannel approach:
The omnichannel approach is a very dynamic approach used by businesses to expand their business across different channels. The omnichannel approach refers to providing a seamless experience to the customer on multi-channels like online, and onsite stores.
The omnichannel approach enables a great potential for businesses to explore new markets and engage new customers. By using this approach the retail industry evolved into an expanded industry that has a vast population of customers to target.
Although managing multi-channel is difficult for retail stores because they don’t have the right tools for that. This is where ERP software comes in. ERP software helps the retail industry in managing its omnichannel approach. The features and tools of the ERP software enable it to manage and explore the Omnichannel approach.
5. New technology:
Technological advancement is a major factor that has transformed the retail industry. New technology leads to new opportunities and tools for the industry to explore. Retail businesses are using different technologies to enhance their management and explore new markets.
Artificial intelligence (AI) and Business intelligence (BI) is one of the major advancements that are reshaping the retail industry across the globe.
ERP software is also among those technologies that are vastly used in the retail industry to manage the business. More and more integrations are added into the ERP software like AI and BI to enhance the capability of the software to perform better.
ERP software is helping the retail industry in product placement, customers’ data management, inventory management, supply chain management, HR management, financial resource management, customer relationship management, and order management.
Why the retail industry is turning to CISERP:
In Pakistan, businesses are switching to ERP software to maximize their management efficiency. The retail industry is one of the major industries shifting to ERP software. With the increase in exposure to technology and increasing demand for management solutions, businesses are considering ERP software.