retailers
MANUFACTURING
Retailing in Recession - Tips and Strategies
to Survive During the Economic Downturn
T
he first point to keep in mind your store more attractive to cus-
is that, whilst overall spend- tomers in another country. Look at
ing does contract, what does where your business is coming from
more damage to most retailers is and consider how you can direct
failing to connect with the change in your marketing activity in that
consumer spending patterns. The direction to let other prospective
emotional shift in consumer’s minds customers know you can meet their
from ambition to self-preservation needs too.
makes people buy differently, but
they still buy. square6Similarly, people will change how
In previous recessions con- they buy. Are you selling more or
sumers have increased spending on less over the internet, phone or in-
escapist pursuits like going to the store? Are people using cash more
movies, upbeat music and lower- or less than credit? Are you making
cost indulgences like take-away it easy and clear to prospective cus-
food. This shift isn’t about what’s tomers that you can sell the way
useful; it’s about what’s enjoyable they want to buy?
without feeling excessively indul-
gent. square6With fear such a big driver of
From a psychological point of view, consumers are looking human behavior; and in a recession there’s a never-ending sup-
for ways to lift their mood. Interestingly, psychologists have ply of media stories to prime such fears; customers need a
observed that people have a sort of pre-determined level of hap- powerful reason not to put off spending. Keep promotions
piness. Even dramatic events like winning the lottery or the tightly focused and change them frequently; knowing that an
death of a close relative don’t shift this level for very long in offer is genuinely only available for a short period or that cur-
most people. rency changes mean the cost will increase after the next order
With these factors in mind, here are five tips for surviving the may provide good reasons for them not to delay buying.
economic downturn in retail:
square6Watch what people are buying from you; it will change. Use The old adage that ‘retail is detail’ is never truer than during
this as the most reliable indicator of what they want and a recession. The key is to be very aware of where your business
work harder at promoting these products. is coming from and to adapt your marketing activity according-
ly. A classic mistake is to assume consumer behavior will be
square6Consumers (and people in general) are surprisingly sheep- rational; it rarely is. Let your own customers’ behavior be your
like: where consumption of something becomes more visi- guide to your activity.
ble it will spread more quickly. Look to see what people are Philip Graves is one of the world’s leading experts on con-
consuming in your area and tap into it if you can. sumer behavior. Based in the UK but working globally he advis-
es a number of retailers, media companies and manufacturers on
square6When market conditions change people will change the dis- consumer behavior, psychology and influence. You can get the
tance they’re prepared to travel; they may be willing to latest consumer behavior research and insights and contact him
drive further if they believe they can save money (even if at
http://www.philipgraves.net square6
the numbers don’t actually stack up when travel and time
are taken into account). Currency fluctuations may make Source:
http://EzineArticles.com
62
www.blackeoejournal.com The Black E.O.E. Journal
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84