When one examines the global retailing business there are three key features that stand out, the drivers of the global retailing business, the trends and challenges faced by the industry.
Retailing was once regarded as a chore, but with time and popular culture, it has evolved into an indulgence, thus effectively turning retail shopping into a pleasurable experience. Retail shops, which were once regarded only as a “pick up point” has now turned into “the point” of focus. The retail industry was at one point the delivery vehicle of Fast Moving Consumer Goods (FMCGs), but now it has become the engine that runs FMCGs, retail banks and more.
A new breed of FMCGs has come to the fore with mobile phones, holiday packages etc. At present global organized retail has reached unprecedented heights. When one examines the drivers of the retail industry, it can be noted that the middle class boom is a considerable contributing factor to its growth. Cross border travel and media brands such as CNN, airlines such as Emirates, global brands such as Starbucks are all drivers of the retail industry. Local celebrations are no longer limited to geographical boundaries, they are celebrated the world over.
It is interesting to note that while homes get more compact and smaller, shopping malls are becoming bigger and more spacious. Encouraged by the increased retail consumerism, there are increased investments made in the retail sector further fueling its growth.
The key industries that are propelling retail growth are food, clothing and fashion, automobiles and Mobile communications. Fueling the retail boom, credit and debit cards have taken the waiting out of wanting. The consumer no longer has to wait to obtain what they desire, it is all available right now with this plastic revolution created by various shopping cards.