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Marketing is facing new challenges in the retail area.
Shopping in the UK had its golden age in the 1980's. There
was buoyant consumer confidence, new technological products,
such as CD's, stimulated demand, and edge-of-town developments
boomed. However, the new retail environment is much more complex,
competitive and uncertain. New strategies will be vital for
survival.
Changing demographics
The "grey market" will double by 2020. The over-60's will
be richer and have more leisure. However, it is not easy to
predict their shopping habits. Just what product mix will match
them? How far will the over-60's take on board new technologies
and attitudes.
There has been much talk of the emergent "green consumer".
Yet it is the falling demographic sectors who shop most greenly
- the young.
Micro-marketing
Reflecting the uncertain and fragmented nature of the future
retail landscape, marketing has had to become increasingly
complex and "micro". Time and effort is going into targeting
niche markets. Markets are being analysed not only in terms
of class or area but according to minute differentiations in
tastes, lifestyles and attitudes.
Saturation
The markets opened up by out-of-centre supermarkets are becoming
saturated. One response has been a move downmarket into deep
discount supermarkets. Some experts predict a growth of teleshopping
helped by the spread in cable networks. One spin-off of teleshopping,
incidentally, will be a rise in specifically targeted advertising
via such networks. Instead of broadcasting adverts to the old "admass",
the new buzz word is "narrowcasting".
Internationalisation
Retailing will become more international. In the UK the pioneers
in deep discounting were continentals such as Aldi and Netto.
Recently, the Japanese have been buying big stores such as
Simpson and Aquascutum. Many British now cross the channel
to shop in France - the cross-channel spree has become a national
institution.
In general, however, the British consumer may stay different
from his neighbours on the continent. A recent survey of food
retailers, for example, showed that while "lifestyle" and "environment" were
important factors for continental consumers, "cheapness" and "safety" remained
the Anglo-Saxon priorities.
Reading for meaning
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