Retail Strategies for Emerging Markets
There are both pros and cons to opening a retail store in an “emerging” market. You’ll have less competition, which usually translates into easier sales. But on the flipside, there are typically fewer customers. It’s a double-edged sword so to speak that can either help or hurt your efforts to create, and maintain, a successful retail business. But there are ways to shift the odds in your favor, so check out the following retail strategies if you’re planning to open a new store in an emerging market.
Choose the Right Location
Location can make or break a retail store, but choosing the right location is even more important when it involves an emerging market. You should choose a location that’s in, or close to, the main commercial part of town. Doing so increases your store’s visibility while attracting more shoppers in the process. If you open your store in some obscure part of town that’s off the beaten path, you’ll face an uphill battle trying to build your brand and generate sales.
Create a Strong Brand
Another effective tactic for successfully cementing your retail business in an emerging market is to create a strong brand. If your target audience remembers who you are and what you do (or what you sell), they’ll feel more inclined to choose your retail store the next time they need one of your products. So, invest the necessary time and resources into building your brand. Using a combination of both local and online techniques, promote your brand and its respective elements to your target audience.
Expand Your Operations
Of course, you can always open a new retail store to further strengthen your position in an emerging market. But opening a new store isn’t a decision that retailers should take lightly. It requires double the work, and double the capital.
Even if there are few to no competing retail stores in your area, you should still price your products competitively. The fact is that many consumers now shop for products online. So before buying a product in a retail store, they’ll check online to see if it’s offered elsewhere at a lower price. Failure to offer a competitive price could result in these consumers choosing one of your competitors instead.
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