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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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