Future-proofing is the procedure of forecasting the future and establishing methods of reducing the effects of breakdowns of future proceedings.
Some of the principles of future-proofing are:
- Prevent deterioration of materials.
- Foster flexibility.
- Prolong the service lifespan.
- Secure against materials shortages.
- Enhance endurance.
Advanced technologies are rapidly transforming the retail sector. Retail firms must respond expeditiously to altering pressures and competitive market dynamics while sustaining a sharp emphasis on business results: revenue, sales, and customer interaction. In other words, adaptation would be the key to staying in business.
Some of the salient features that retailers must adapt in the coming years to future proof their business are:
Shift to Omni-channel
The global retail sector is witnessing a period of low-growth while technology is reducing entry barriers for new ventures and business models.
This has increased the competition in the sector. The mobile computing revolution is forever modifying the retail environment. This is a method to better comprehend and address the shifting competitive scenario with a comprehensive Omni-channel retail strategy.
Regular Changes in Prices
Price changes in the retail sector have been rising exponentially in recent times. Retailers have substantially increased the amount of price movements. Retailers must reassess their pricing strategy.
Value Is More Than the Price
According to Ken Murthy, president of Global Brands, Walgreens Boots Alliance (USA), “Retailers can no longer afford to insult customers on price.”
Disregarding market transformations and letting the customers migrate to the competitors is not a business choice, but neither is permitting the competitors to influence the pricing strategy.
Retail firms without a sound price matching policy have witnessed their business margins being impacted.
Retailers must adhere to a reactive merchandising plan. In order to stay relevant in the Omni-channel domain and implement price changes quickly, they would have to incorporate the state-of-the-art technologies that would provide them with an advantage in terms of speed, scale, and efficiency.
Currently, retailers in the developed economies such as the US and the UK are witnessing positive business outcomes by implementing the price optimization technology.
If they cannot convert consumer and competitive information into feasible business insights that verify their pricing strategies, they would not be able to compete in the marketplace.