In an emerging and rapidly transforming retail market such as Nigeria, studies show that the market is yet unpredictable.
According to a research done by the Retail Association of Nigeria (RAN) and presented at its 6th edition of The Retail Leaders Conference (TRLC 2019), since 2015 when it undertook a 5-year plan to 2020, the retail market in Nigeria has been characterised by uncertainties and unpredictabilities.
Joseph Ebata, president, RAN/Bervidson Group, said the conclusion was as a result of new innovations, technology, consumer behaviourial experiences currently changing and improving today’s world, such that any market that could not grow with the trend of modernity would not remain business.
According to him, gone were the days when market could be predicted based on existing technology and innovations, which were not seen to change soon.
But in today’s world where robots and artificial intelligence (AI) are fast taking over the running of supermarkets, warehouses, even delivery of parcels on the streets, there is a need for every retailer to be innovative and move with the trend of event.
“The future involves a series of interplay of competitive forces and shifts,” Ebata said, adding that in a growing market like Nigeria, “unpredictability is constant.”
According to RAN, unlike before, today’s business required rethinking, reshaping of mind and strategy in order to satisfy customer’s experience.
In the past, businesses tried to satisfy customers with quality goods and services, but today’s narrative has changed with studies showing that customers do not only want quality goods and services but dwell more on the experience they have while visiting an outlet.
“Nobody can drive to the future on cruise control,” Ebata said.
The group argued that increased competition usually translated into more power and choice for consumers, implying added pressure on the already thin average profit margins for retail businesses.
For this reason, Ebata said customer’s experience was fast becoming the new retail currency in the emerging retail market, and not merely the cash in the wallet.
During the period under study, the group said some retail outlets that were not innovative in their customer experience care and could not leverage on the existing technology either lost a lot of customers outrightly or had their outlet shrunken and eventually closed down.
“Retail businesses that failed to stand up to customers’ scrutiny felt the effects in lost sales revenue and profits. Others simply became history as customers voted with their wallets,” Ebata said.
For retailers to survive the new waves in technology and customer experiential behaviour, the group advised players to refocus attention on the new consumers that are so dynamic in behaviour and preferences, very powerful, more demanding and less forgiving.
Business owners should equally build agile, transparent and demand responsive supply chains systems. In addition, retailers should also embrace and use apposite technologies to optimise operation for greater effectiveness, which would help in building capabilities to put data at the heart of their organisations and creating the agility to respond to market change.
According to RAN, having a system that will enrich customer’s experience and make them come back again is very important. This should be the driving force for retailers to rethink how and where to serve the smart consumers and provide them with the right experiences they seek, thus providing consumers with compelling reasons for continued patronage.
“Leaders must be willing to take bold strategic and tactical steps to guarantee success and survival into the future”, Ebata advised.
JOSEPH MAURICE OGU
