The following video will give you a holistic understanding of the end-to-end retail value chain. By the end, you should understand how each part of a retailer’s operations contributes to their overall success and customer satisfaction.
- Omnichannel Retail: Combines online and in-store shopping for a smooth experience across all platforms.
- Direct-to-Consumer (D2C): Retailers sell directly to customers, skipping middlemen, for better control and profits.
- Subscription Models: Offers regular deliveries and special perks to build loyalty and ensure steady income.
- Retail as a Service (RaaS): Provides retail services to other businesses, helping them grow without big investments.
- Business-to-Business-to-Consumer (B2B2C): Businesses partner to reach consumers, improving the shopping experience.
These models show how retailers use different strategies to meet customer needs and adapt to market changes.
Store Types and Focus
Will they sell in store or online? Or via a pop-up store or a store within a store? Are they going to focus on a specific region with multiple stores in an area, be a national chain, or more of an exclusive operation with limited stores around the country or globe?
Target Market and Pricing
Are they a luxury brand targeting high-end customers or are they targeting cost-conscious consumers? Do they have a highly promotional business or will they offer everyday low prices?
Product Selection
Will they be like a Mercadona, which is 80% private label, and only have 2 to 3 choices per item, or more like a Kroger, with many different brands and choices per item, for example, 5 to 10 different brands of potato chips?
Customer Interactions
How will they interact with their customers beyond in store? Will they have representatives helping over social media? Will there be a loyalty program?
Market Positioning
How will they position themselves in the market?
These strategies are things that retailers don't just have to decide once. Brands are constantly evolving as the market conditions change, brands grow, and disruptors enter the market.