Blockchain technology has been implemented in every corner of the whole economy from games, apps, webs to every business transaction. It also improves and encourages the development of a retail system which can be managed with a low budget. We have to say that this type of business has been developing more and more in recent years with help from a wide range of web apps platforms like shopee, tiktok, facebook, etc. With help from computer science, and blockchain technology there are many people who have successfully achieved their dream of being a retailer, a owner of their own business. It’s a good sign for the whole economy however, there are also some hidden drawbacks that we should be aware of.
Changing Consumer Expectations
The retail industry has to deal with a lot of volatile elements, and one of these is consumer expectations. In reality, consumer expectations seem to change quite rapidly, which is hard to keep up with. There are just too many elements at play, changing the tastes of the consumers overnight. For example, a good portion of the consumer may love a product today, just the next day, they might have different thoughts, and some may not even like the product anymore. Season changes, occasions, holidays, trends are some of the crucial factors in this. Therefore, the retail industry needs to be smart enough to comprehend all this information. However, accurate forecasts are still not possible to this day.
Poor Customer Loyalty Maintenance
To create good brand loyalty, you need to have a good customer experience. In reality, one of the most prominent issues of retailers is the practice of losing their old customers, thinking they can be replaced easily. We know that dealing with consumers can become hard at times. But the practice of letting go can only come back to haunt you later on. For example, if you keep this mindset on, then you will find it harder to scale your business. Although promotions or sale offers or special discounts can help your old customers feel wanted, it’s still not enough at the moment because most of the time, retailers fail to deliver personalized offers.
Inefficient Internal Communication
This is most suited for large retail companies as they seem to have a lot of divisions in place. Therefore, maintaining this much division at the same time is costly and complex. Thus, the mere complexity of managing and operating these divisions by communicating internally may not be possible at times. As a result, the lack of communication between divisions can disrupt the business process along with decreasing consumer satisfaction. Without a proper system in place to automate these communications, there is no proper way to maintain this problem. Therefore, they need help from technology.
Poor Modern Marketing Strategy
Yes, many retail companies are slowly transitioning into the realm of online marketing. But the lack of a proper knowledge base on the subject matter makes them end up investing a lot of money with barely any outputs. In reality, you can’t only stick with social media marketing; there are various ways you can market your products to the customers.
Fraud and Counterfeit Goods
One of the major issues of this industry is the increasing amount of fraudulent activities and counterfeit goods. Not only are there too many counterfeit goods in the market that shatters the reputation the retail companies build-up, but internal fraud activities take a toll on the revenue as well. In fact, counterfeit goods are becoming harder to identify, which means more consumer dissatisfaction. Without properly addressing the issue, both the customer and retailer will keep losing their precious money. So, retail companies need to solve this issue as fast as they can.
The increasing number of cyber hacks is another bottleneck for retail companies. In reality, most of the retail companies use a typical client-server networking model, which is quite vulnerable, frankly. Therefore, it’s almost easy to hack into the servers and steal important data. Furthermore, as every retail company keeps data on its customers, it’s quite easy to manipulate that data and get access to their credit card or bank account information. This can quickly become a huge security breach leading to losing lots of revenue. More so, it will also mean that consumers can’t trust you with their data, which is not a good impression for your brand.