As political season in China begins between the National People’s Congress and the Chinese People’s Political Consultative Conference, there have been concerns with the consumption of luxury goods. China has gone to extremes measures to prevent the issue of inequality by banning politicians to speak publicly about spending on luxury goods. With increases in social media, people have been able to show how wealthy they are by posting to websites such as Tumbler, Instagram, Twitter, and Facebook. Recently, there was an online argument between a Chinese socialite and a member of a sports car club over who has more money. As Asian countries begin to crack down on the over the top display of wealth, could luxury goods retailers be affected?
globalEDGE Blog - By Tag: retail
We are all aware that online retailers monitor our every click, but you might be surprised that brick-and-mortar stores are beginning to use a similar approach to maximize sales. Some may think that being monitored while shopping is a little invasive, but big brother is definitely watching. E-retailers are able to monitor the pattern of clicks and place similar items on the same web pages to maximize purchases. Now, there are a few new methods that brick-and-mortar retailers are using to produce similar results.
When people think of online shopping today, paying for goods or services via the internet usually comes to mind. However, in Russia this is not the case. More than 80 percent of transactions at Russian online megastores are in cash. Russian customers are not very comfortable with online transactions so businesses in Russia have developed alternatives for the online shopping model.
Cotton prices have recently reached record highs and have begun to cause some clothing retailers problems. Many European clothing stores import their cotton from various countries in Asia, so they are often at the mercy of their suppliers. China and India are two of the top producers of cotton in the world, and they have recently undergone some industry changes that may lead to lower profit margins for their European buyers.
The view is a strange one for most foreign visitors to Chinese residential areas. An array of colorful fabric is draped from building to building in all directions. A local resident can often be seen reaching out of a high window to hook a cloth on the end of a long wooden stick. What is this strange ritual that appears unlike anything experienced in many Western cultures?
As of today (July 1st), Japan has significantly relaxed the visa restrictions for tourists allowing the single fastest-growing group of overseas travelers, the Chinese, to be able to travel to Japan. These new regulations will enable another 16 million households to be able to apply for a trip to Japan. This is 10 times the amount of tourist visas that were available before the new regulations. Up to now, Japan had strict regulations regarding visitors from their neighbor to the west; only allowing wealthy Chinese with high annual incomes to travel to Japan. The massive influx of Chinese travelers will hopefully result in a jump in income for many local shopping centers in Japan.
The global recession caused many companies to delay any expansion goals and to stay away from risky proposals. Retailers, for example are still risk-averse, however their concerns about future growth is making start considering expansion again. Some U.S. companies are taking steps into international expansion into Canada.
In recent news, the world’s second largest retailer, Carrefour, has elected to invest further in its international investment. Known for stringent regulations in the retail industry, India has traditionally protected the smaller, independent markets and local communities that run them. Carrefour’s entrance provides a great case study of the importance of understanding the international market where a firm expands. Lets take a brief look at the conditions in India that Carrefour became familiar with before “cracking the code."
There are a few key observations that many have noticed about consumers in this new economy:
- Shoppers are less impulsive, more needs-based
Some say the recession made a correction in consumer behavior especially in the U.S. The means simply aren’t there for as much shopping on impulse. Those adjusting to changing consumer behavior are advised to in turn adjust their merchandise mix and price points accordingly.
The fashion industry makes up a major portion of the retail around the world. Fashion retailers are found in every country, each one trying to have the latest trends at the best price. However, this is much more difficult than it may sound. There are people working ‘round the clock to ensure that fashion retailers know what is going to sell next.
Stores Magazine provides the Top 250 Global Retailers list made in 2010 using revenues from 2008. The combination of great marketing, good customer service, and the ability to reach multiple demographics, has shaped these companies into the successful international businesses they are today:
It's time for our readership to be rewarded with yet another blog series! This week's series will be focusing on contemporary issues in the retail industry The topcs we'll be covering include an overview of the top global firms in the retail business, a look at the ever-so-fashionable fashion industry, consumers, and last-but-not-least, purchasing behavior, and how consumers are shopping in new, different ways.
A couple of years ago, customers were delighted because they were able to order products online from their living rooms. It is easy to compare prices and products online using different websites.
Now, the way we shop is changing once again. Companies are not waiting for shoppers to find them; instead they are approaching people online using social media such as facebook and twitter. Imagine just making a post whether to buy a new car or not, and an offer to test drive a car is sent to you in your mail box. This is one way GM is trying to gain more customers.
Luxury brand sales have been hit especially hard by this recession. Since people are so worried about paying their bills, that in turn makes expensive jewelry and high end hand bags seem frivolous and unnecessary. Luckily, some high end brands have had success internationally.
Some people say Wal-Mart, others say Carrefour, but Iran is saying Hyperstar. Hyperstar, found in western Tehran, is Iran’s first large U.S.-style supermarket, financed by a businessman from the United Arab Emirates. It is becoming incredibly successful with an average of 15,000 customers a day! Shoppers consist of mainly middle-class residents who show an increasing interest in shopping and traveling.
It’s that time of year again! All over the world workers are bustling around, working hard to prepare for the upcoming holiday season. Online retailers are rushing to get everything in order for the big day – “Cyber Monday”. This is the first Monday in December and also the most popular day for online shopping. This year, expectations are high and hopefully, so will be sales.
As it gets colder outside and we head into turtleneck and snow pant season, it’s a good time to start thinking about what you will get your loved ones for the holidays. Many retailers are preparing for the rush of shoppers, but the suffering economy is kind of raining on their parade. The economic downturn is affecting people all over the globe. In Mongolia, factory workers were ready for the demand of their stylish and cozy cashmere sweaters, but are finding that the demand is not what it used to be.
Many people in the international community have perhaps visited or at least heard of Adbusters.org, the Canadian anti-consumerist activist organization. I remember browsing through the site a couple years ago and watching a few videos, laughing a little bit, and happily forgetting that it existed. Recently, the self proclaimed “journal of the mental environment” and I crossed paths again when a friend of mine received an online invitation to participate in Buy Nothing Day, an international campaign supported by Adbusters in which participants refrain from spending money on absolutely anything on November 27th or 28th (depending on location) in order to create “a chain reaction of refusal against consumer capitalism … a sudden, unexpected moment of truth … the first ever global revolution.” Participating countries include Denmark, France, Israel, Italy, and the United Kingdom.
Whether it’s a trip to the mall to buy new clothes, to the supermarket for groceries, or to the drug store for cough drops, nearly every citizen in the world is an active participant in the monster industry known as retail. As the holiday season comes upon us, stores begin preparing for what, for many of them, is the crème-de-la-crème of the fiscal year, and a large chunk of their yearly profits. Despite a raise in sales from last year, the outlook for the retail industry is dim. An article by VOA News elaborates on this. Everything isn’t all gloom-and-doom, though. There is hope on the horizon for retailers.
A recent episode of the Oprah Winfrey show highlighted Time Magazine’s 2008 Invention of the Year: 23andMe, a Google-backed startup introducing a retail DNA test. The available-for-purchase personal test provides information on health & traits as well as ancestry, for the user to “see your genes in a whole new light.”
In my mind, the Disney brand conjures images of children’s characters and animated movies. Of course there is more to the brand than nostalgia but the company is looking to expand their reach even farther with high-end retail. A New York Times article, “Disney, by Design,” author Brooks Barnes, discusses the goal of Disney to become a “lifestyle brand.”