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Overcoming challenges and exploring possibilities of a lifestyle retail business in the new normal
Overcoming challenges and exploring possibilities of a lifestyle retail business in the new normal

July 18, 2022

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Running a lifestyle business, like any other retail business, isn’t easy. The COVID-19 pandemic derailed the industry’s recovery by a few quarters at least, and there still seems to be no respite as the economic situation globally has worsened. Due to the rising inflation, customer spending has fallen because spending money on clothes, home décor and other items is often deemed as discretionary spending. With everyone more aware now regarding the COVID-19 pandemic and a remarkable rise in the vaccinated population, people are resetting themselves to the ‘back to socialising’ mode and can be seen going to their favourite shopping malls.

It is more critical than ever for lifestyle retail businesses to make the most of this increase in-store footfalls and offer their customers, an unparalleled shopping experience. Let us go through the five key challenges that a lifestyle retail business faces today and how it can win overcome them.

  • To be offline or online retail: India’s offline and online lifestyle retail businesses are both huge markets. While the e-commerce market is growing at a rapid pace, the offline retail segment is still a preferable choice for many. Of course, the millennials and Gen-Z customers want products at the right price and from the comfort of their space. They also shop at the stores because why not? This brings us to the question, should retailers have an offline or online presence? Many lifestyle business owners are opting for an omnichannel presence because they don’t want to leave any segment of customers untapped on either side. This hybrid model is the go-to model for most lifestyle retailers looking to increase sales and revenue.
  • Enhancing the in-store customer experience: Most of the customers are put off by waiting in long queues. By offering contactless payments at the store and other popular digital payment modes like UPI, waiting time at the checkout can be reduced significantly.
  • Offer loyalty points: Customer loyalty is the key to repeat business. Offering loyalty or rewards points on each purchase can win them for life and make them a staunch advocate for a brand.
  • Capturing NPS: How a customer feels at a store while shopping can make or break a brand. This is why capturing NPS is critical for a lifestyle business. This can help retailers in decreasing customer churn and improving customer satisfaction. It can also help them in embracing correctional measures in the right direction.
  • Pay Later:  The concept of Buy Now Pay Later at the offline point of sale executed digitally using the PoS terminals has emerged as a real game-changer in driving sales to a lifestyle store. Today, customers can convert their big-ticket items into EMIs within seconds and without pledging any collateral or signing any document.

Challenges are inevitable in any business of any shape or size. However, the key to success lies in overcoming them smartly. Fine-tuning the existing approach, some out-of-the-box thinking and embracing new technology can be a surefire way to ensure conversions and sustenance in the long run.

 


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