By Aimee Chanthadavong
The retail landscape is changing with consumers now driving the market and not the sellers, Nancy Georges of Magnolia Solutions warned a room of retailers, suppliers and wholesalers at the Sourcing & Selling in 2011 presentation.
Also known as The Retail ‘Miss Fix It’, Georges, who specialises in providing market support to retailers, manufacturers, brand and service-providers, said at the presentation – which was held in conjunction with the Hong Kong Trade Development Council (HKTDC) – that consumer behaviour is changing.
“Consumers want choice, they want good customer service and it’s all about the want now,” she said.
“And since the evolution of the World Wide Web, which has since changed the retail landscape forever, it means consumers are using the internet to shop on the go 24/7 and worldwide, as well as research products. This is ultimately changing the supply chain model where we are now seeing manufacturers and suppliers speaking directly to consumers.”
She also highlighted that since the global financial crisis, the economic recovery has been slow. Consequently, consumers are still feeling the pressure and are now more mindful in the way they spend.
“Customers will be very reluctant to spend on ‘indulgent’ expensive items,” Georges said.
“But this doesn’t mean they don’t have money. Consumers have lots of it but they are just cautious about where they spend it.
“Retailers who are currently doing well know their customers and know what to buy and how to reinvigorate their business.”
Three key trends predicted for the 2011 in the retail landscape is that retailers need to ensure that in some aspect they invest their time into looking at green and sustainable products, products that can be personalised and modern design mixed with a nostalgic vintage twist.
It was also noted that mobile commerce is changing the way consumers shop and therefore necessary for retailers to incorporate both their online and offline channels.
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