BDO Transitions: Demanding consumers pose new challenge
RETAILERS must ready themselves for dramatic changes in consumer behaviour if they are to thrive in the future, according to a new report by accountants and business advisors BDO.
The study, Transitions to the New Consumer, forecasts that consumer spending will rise overall by 2.8% next year but warns that people have become far more thoughtful in their spending patterns since the credit crunch.
Consumers are now increasingly focused on individualised service and personal shopping experiences with purchasing decisions less likely to be based in size, volume or variety than before.
Research suggests 26,500 retailers will disappear from the high street by 2015 including 6,300 bars and restaurants and 1,500 homeware stores and BDO is urging retailers to act now to build brand loyalty among their customers.
Graham Newton, partner at BDO Leeds, said: “One size no longer fits all. Businesses will not survive and thrive if they do not take steps to understand the psychology of the new consumer.
“The recession has been a catalyst for change and people are becoming much more demanding – they want a personalised experience without paying a premium for it. That means consumers want to buy from retailers who target and treat them as individuals.”
Over the course of this week, TheBusinessDesk.com will be taking an in-depth look at the latest Transitions report and the challenges and opportunities for businesses from the trends it identifies.
The report offers advice on issues including:
• Re-evaluating who your customers really are and who you want them to be
• Re-visiting what great service looks, feels and sounds like
• Analysing customer spending data on an ongoing basis and using it to competitive advantage, providing a personal experience that recognises the consumer as an individual
• Considering the international dimension and all the opportunities afforded by overseas markets
• Developing and investing in multi-channel platforms
• Quality over quantity. Listening intently to consumers and focusing on what they want and need rather than product range variety
The features will be available to read all week in our supplements channel and our readers can also download the report in full.
Click here to download the report.
The latest report is the second in a series following in the wake of Transitions – The New Economic World Order, published earlier this year, which urged government and businesses to focus on exports if they are to succeed in the new economic landscape.
