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Retail is at once both a simple industry to understand and also an immensely complex one. It is simple in so far as the business model is clear: there is a product that will be sold to a customer at a mark-up. The difference, after costs, is the profit. It is complex because your customers are not hyper rational beings. The perfect academic subject simply does not exist. We do not always make decisions that are in our best interests. When shopping especially, psychology plays a big part in what sells and what doesn’t. Retailers spend much of their time worrying about how to lay out their store to make it seem as appealing to the customers as possible. Another massive facet of the retail industry is brand recognition. You may spend years building up a reputation for quality, style, and reliability, but customers can be fickle, and the value of a brand can change dramatically overnight. If you want to open your own store, whether it is to sell socks or diamond rings, here are a few things to consider first:
It doesn’t just need to be a store. Cyberspace allows nearly all businesses to have both a real life and a virtual presence. It is particularly useful for shops because once your customers have experienced either your brick and mortar store or your online counterpart, they will feel comfortable trying the other. You can invite your in-store customers to make their next purchases online and advertise your real life store on your website. It allows for more versatility in your business. Amazon has recently switched from being an online-only company to opening their first store. One advantage of doing both is that running an online store can help you cut down on some of the costs associated with opening a conventional store like hiring cashiers and security guards.
If you are going to rent or buy a building, you need to make sure that people will want to come inside to shop. There are a few things that can set a store apart and one of them is offering free Wi-Fi. Nearly everybody has a smartphone, and they don’t all want to use up their data. If you invite them to use yours, they will spend more time in your store, therefore increasing the chances of their finding something that takes their fancy. Besides, the internet, you should consider illuminated business signs. It is simple but true: bright lights attract people.
The economic environment is good for retail right now. The Consumer Confidence Survey recently reported that people are feeling better about the economy now than they have in seventeen years. As of this month, March 2017, the index stood at 125.6, the greatest it has been since 2000 (when it was 128.6). If people want to spend their money, then you need to be there to help them do it.
As the economy is continuing to improve after the hardships of the last decade, the opportunities for new start-ups are exciting. Retail is one that you should consider.