EDI Trends 2020Unknown facts of Retail Industry…know where to invest and How

October 21, 2020by CloudGen Admin

A small shop at the corner of the colony or the big stores offering you everything from pin to electronic gadgets, the retail industry has changed a lot. With the customer-centric approach and better services, many retail stores are experiencing the real boom in their business.

With the advent of the e-commerce, and linkage to the digitization of the retail industry; especially in the area of online order and home delivery, the consumers are now getting inclined towards businesses that offer easy shopping ways.

The need to scrutinize every moment in the shopping experience right from the start of the moment customers enter the store to after-sale services is a must to meet the level of competition. But what makes the Retail Industry as a strong competitor to other industries? Ever checked with the facts? We help you to know few…

Facts of the Retail Industry

With the ample opportunities and options, the retail industry has scope and space for a lot of people to enter. The savvy retailers know very well that the information is key to success. With the perfect vision and updated system, analyzing and transforming it into the application, focusing on targeted market communication, product descriptions, pricing, and promotion, is the solution to the best retail business.

The facts that one needs to be aware of the retail industry before planning to invest in it are listed below.

Customer Experience

Customer is king- this is the basic idea on which any retail business sticks on. Knowing about the customer’s needs and expectations, and fulfilling them is must, to grow and reach the peaks. With the customer-centric approach and reaching the highest level of customer expectation, the retail industry aims to bridge the gap between demand and supply.

Digitization – the need of today

In the current fast-paced world, the time has shrunk to the least. Ordering all the prime consumer durable goods at the comfort of home is more preferred. With the online ordering method and home delivery, the businesses are fast shifting their model to an e-commerce portal. With the ease of tracking and opportunities to get feedback, the retail industry has shifted in recent years.

Bottle-necked Competition

The entry of the foreign direct investment and opening of the giant retail stores, the competition for the small local retail vendors, has increased a lot. With the opportunity to check and buy, compare and contrast, the products at the mega-stores, a paradigm shift has been seen. Consumers feel it better to buy when satisfied with the product features which are offered by all multi-brand stores around the globe.

Inventory Movement

Managing inventory is crucial for any business. Excess or short of inventory hampers a lot. Also, the focus on the trends, the market demands, customers’ preference, and brand value needs to be focused while buying the stock to arrange on the shelf. The products preferred by the majority are sure to get a positive response.

Human Touch

The businesses are considered to best when the staff and owner communicate with the customers to know their needs better. The speed, convenience, knowledgeable help, positive attitude, need-based understanding, and friendly service are the most crucial elements of positive customer experience. A positive attitude reflected towards the customers is sure to go a long way.

Secured Transaction

There are so many available options to transact and pay where the customer-experience has been always smooth and better. The online payment modes, payment via cards, and cash have given the options. With no need to run to ATM every minute you go to market, the satisfaction level of customers has increased in manifolds.

Invest in Retail Industry

Retailers face several key issues. The major ones are poor economic conditions, increased regulation and competition, and channel disruption. To stay on the peak in any business, it is a must to keep pace with the trends and advances as well. The investors who look forward to investing in the retail industry focus on the four R.

The need to quantify the returns is the prime concern for all the investors. To understand the business metrics, to better understand profitability and financial health, the prime analysis points are listed for you.

  • Return on Revenue: The cornerstone of all the retail operations that guide on the revenue made in the form of the gross profit on the inventory and investment.
  • Return On Invested Capital: The amount of the profit generated based on the initial investment is arrived by using this.
  • Return on Total Assets: The total value of the operating profit generated from the assets invested in the business is ROA.
  • Return On Capital Employed: The efficiency by which the capital is utilized and the net earnings before tax arrives, is obtained here

Understanding these R’s, one can move ahead with the plan to invest and get benefits from the retail industry. With so much scope, the best sector to invest in retail in consumer durable goods. With the least investment and stock management, one can get higher returns and profits.


The tremendous business opportunities in the retail industry and the basic knowledge of the trends, one can move ahead with investing in the retail industry. The use of available data and focusing on the key customers is prime factor of success mantra. The booming retail industry filled with savvy investors always outperforms the broader market.