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Retailing in a Pandemic: Global Retail Footfall and the DTC

Retailing-in-a-Pandemic-Global-Retail-Footfall-and-the-DTC

Retail has changed dramatically since the 1990s. With the advent of online shopping, customers are no longer bound by geographic constraints. They can purchase items from anywhere in the world with a click of a button.

 

This rising trend has forced retailers to rethink their strategies. Many businesses can no longer rely on brick-and-mortar stores to lure customers in. They must now focus on creating a seamless online experience and delivering products to customers quickly and efficiently.

 

The Present Retail Status

 

Many people now do most of their shopping online, so brick-and-mortar stores are struggling to keep up with the competition and are being forced to close down. This is terrible news for the economy. It results in job losses and a decline in consumer spending.

 

If you think that’s the end of the significant change, it’s just getting started. The next stage in eCommerce comes as a direct response to the monopolizing practices of large eCommerce platforms like Amazon.

 

The DTC Model: The Secret of Small Businesses

 

The DTC model has its roots in the eCommerce platforms that have become so popular in recent years. These platforms, such as Amazon, have made it easy for businesses to reach a broad audience of potential customers. However, they have also been accused of monopolizing the market and squeezing out smaller businesses.

 

To compete with these giants, smaller merchants and consumer brand companies have decided to go straight to the consumer, bypassing traditional retail outlets and eCommerce platforms.

 

This has led to the direct-to-consumer trend, which Shopify has boosted. Shopify is a Canadian firm that provides back-office logistics, payments, and delivery infrastructure services that smaller independent merchants cannot afford to build themselves. This gives them a level playing field on which to compete with the likes of Amazon.

 

Concerns on DTC

 

The main concern is that the DTC model relies on social media. If social media platforms were to change their algorithms or introduce new features that made it harder for businesses to reach their target audience, then the DTC model would no longer be effective.

 

Another worry is that the DTC model relies on a small number of key employees. If these employees were to leave the company, it could have a major impact on its ability to reach its target market.

 

Despite these concerns, the DTC model is still attracting much interest from small businesses and consumer brands. That is because it provides a way to reach a broad audience without relying on traditional retail outlets or eCommerce platforms. If you are considering using the DTC model for your business, it’s important to weigh the risks and benefits carefully.

 

Conclusion

 

The COVID-19 pandemic has had a significant impact on the retail industry globally. Retail footfall and travel have been limited, resulting in less spending and fewer customers in stores. It has had a knock-on effect on the whole supply chain, from manufacturers to retailers.

 

The pandemic has also changed consumer behavior, with more people shopping online and using click-and-collect services. It will likely continue in the future, even after the pandemic ends.

 

Clearly, the retail industry will need to adapt to these changes to survive and thrive in the future. Looking to expand your business by selling your products online?

 

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