How Dunedin retailers can overcome the challenge of e-commerce and online shopping
In the context of competition from international retailers via the internet, Dunedin's retail businesses need to focus, innovate and cement their position. The internet has always been good at providing consumers with greater access to a wider variety of product. Naturally, prices lower due to increased competition, and economies of scale. If you are involved in retail and failing to innovate during this new age of doing business, then you could end up hurting from these new competitive forces. We have witnessed consumers becoming increasingly more comfortable to buy online, and from overseas providers. The cost of distribution has not damaged the growth of these networks and age is becoming less of a barrier to this type of behaviour.
So if you are a Dunedin retailer, what can you do about it? Here are some basic ideas:
- Re-consider product lines that are heavily internet competitive.
- Explore product lines that have a local dependence to them. I.e expiration, character elements etc.
- If you can't beat them join them. Get some of your business online and establish a market position.
- Develop relationships with your local customers. Overseas online retailers will establish brand relationships but they are less likely to be backed up personally.
- Invest in your story. What is your brand about. Can you connect emotively with a group. New Zealanders share common beliefs, values and concerns. We all want to buy from people who are like us.
- If you do not have a selling strategy, get one. Competing on price is going to get harder. Can you sell products that are difficult to replicate or can be perceived as unique in some way?