How retailers can face down the new competition by forging closer ties to the customer

Consider today’s retail environment. For three years, weak macroeconomic conditions have put constant pressure on consumers, reflected in constantly vacillating consumer confidence measures. With unemployment remaining high, people are forced to choose between such necessities as healthcare and energy on one hand and retail purchases on the other. New competitors, from telecommunications companies to media powerhouses, spring up anywhere, anytime. Technology changes the game on a regular basis, with newcomers such as Groupon and Gilt Groupe playing a constant, disruptive role.

 

Throughout these changes, there is one constant at the heart of retail:consumers, who have been evolving along with, if not out in front of, the retail industry. Today’s consumers, empowered by technology, transparency and an abundance of information, are fully capable of dictating the terms between buyers and sellers. They expect to engage with retailers through physical, digital and mobile means. They compare notes — even with strangers — and can champion a brand or deem it passé with a mouse click or a quick tweet.