We need to be honest and say that retail trading is one complex industry. You need to possess knowledge and experience before making the first steps.
Fortunately, we live in a world of advanced technology. Gaining new pieces of information and improving your trading skills won’t be a problem. There are a bunch of blogs similar to this one that will educate you in theory. Despite that, you can also improve your trading skills thanks to platforms like AvaTrade and build up your trading network.
Still, you must be patient and persistent. You won’t be able to make millions of dollars thanks to the retail industry over the night.
That’s why you need to research things a lot before chasing money. One of the things that are quite important is to know the latest trends in the retail industry. You would be surprised when you see how things are changing fast. Yet, if you want to remain competitive, you need to adapt to those changes quickly.
It has passed a bit more than 3 months from the beginning of this year. However, for those three months, a lot of things have changed. Because of that, we would want to analyze them and try to predict the things that will happen in the future.
Retailers Are Becoming Part of Circular Economy
First of all, let’s explain what circular economy exactly is. It is a type of economy that refers to an economic system aimed at eliminating waste and the continual use of resources. More precisely, this system includes retailers that remanufacture, reuse, and recycle resources. They do that to create a close system and minimize the use of resource inputs.
The best real-life example of that type of trading retailers is Nike. Have you heard about their Grind program? Well, their goal is to use old shoes and parts of their manufacturing waste to create usable material for other purposes.
We believe that everyone can benefit from this method. The entire environment would become a healthier place. Despite that, you will attract new customers because of this move. This especially includes members of Generation Z that consider environment-friendly retailers more professional.
Huger Importance of Community-Building and Participation
Indeed, this trend is not new. However, it got more importance in this and the previous year. Different types of retailers have realized that creating some type of community will boost their brand. This directly gives them more chances to make stronger relationships with their customers and improve the number of sales.
Okay, so what exactly this mean?
Many years ago, different brands were only trying to market their products. You could see TV commercials that have the same message – “Our product is the best”. Yet, in 2023, that will not be enough. You need to build a sense of belongingness among your target audience.
Business owners usually do that through social media pages. They constantly publish some new posts and try to involve their followers in a discussion. However, their posts do not directly promote their products. The subjects they publish are usually associated with the industry they are working in. Despite that, it can be connected with some common problems that our environment has.
The Number of Private Label Brands Will Improve
Okay, this is another trend that is not completely new. However, it is easy to notice its presence this year. You have probably noticed that Target stores usually offer a huge number of private label brands. In other words, they usually call them “owned brands”.
Yet, this is not something you will have the chance to do immediately. You will first start to offer products from some other brands. After you establish a trusty relationship with your target audience, then you can offer different private label brands.
A good example of how you should do it is Amazon. This is the most popular online trading platform in the world. Its owner is the richest person in the world. However, in the beginning, you were able to find products from different brands. Today, Amazon has near 600 of its exclusive and private-label lines.
So, why is private label important?
You will get the chance to understand the needs and concerns of your audience. After you understand that, you will have the ability to offer them a personalized product that will meet their requirements. In that way, your brand will start to grow.
Social Media Shopping is More Popular than Ever
Okay, it is already well-known that social media are the most powerful advertising tool. Most of the businesses used the benefits of this promotional tool from the first moment. However, things are a bit different now. Together with social media marketing, the popularity of social media shopping also started to grow.
We believe that you do not understand quite well the difference between these two things. Well, for a long time, the business owners were using social media to redirect users to their webstore/websites. However, with social shopping, you give your customers a chance to order a product directly from the network.
For example, platforms like Instagram and Pinterest are two most popular when we talk about social shopping. You have probably noticed that a number of shoppable Instagram stories and posts have grown. Well, that’s exactly what you need to do. There is no reason not to use this benefit of social media.
Partnerships and Collaborations
Competition on the market is tougher than ever before. The number of competitors rapidly started to grow together with the development of social media. Because of that, many retail businesses started to work differently. They do not consider everyone as their competitor. More precisely, many of them started to collaborate.
For example, a good example of an effective partnership is between Spotify and Starbucks. These two brands do not work in the same industry at all. One of them is a coffee brand, while other is a music streaming platform. Yet, they recognize an opportunity to expand their messages.
That’s why they integrated the Spotify mobile app with the Starbucks My Rewards program. Customers could use the app to find out which song is playing in the store. In that way, both brands reached a new audience and broke into a new niche.