08/02/2016 07:29 AST
The retail industry continues to flourish and has been flourishing for centuries. Trading, bartering and paying for goods and services has always been part of a fabric of life since man has been on the planet.
For centuries in the past, the best and most successful traders would pass along skills learned over their lifetime. Generally, this knowledge was passed along within each family unit. In many cases, the knowledge was kept proprietary within the families and not widely shared. Travel was limited. Vision was narrow. Things did not change much over time.
The knowledge gained over a lifetime of experiences would enable trading families to maintain a competitive advantage, an edge over their competitors. Perhaps what these trading families and retailers overlooked was the opportunity to learn more through sharing experiences. In some parts of the world, sadly this practice still exists today. Not to share trade secrets or information which is vital to the actual business, such as the secret formula to Coca Cola, but to share experiences which make all businesses flow and succeed much better is the best way for success.
In the retail industry globally, experts tell us that it has all been done before. Industry best practices in North America, Europe and Asia and many places in between have many similarities.
Globalisation of retail has occurred through the media, social media, magazines, press and YouTube. Thousands of publications and books on the subject of retail and the retail industry have made every concept in the industry readily available to anyone at anytime.
A retail industry colleague from Mexico City who handles marketing for one of the largest shopping centre developers in Mexico recently met with me in our offices in Dubai. This gentleman was on the homeward leg of his trip where he visited shopping centres in South Korea, China, Japan, Indonesia, UAE, Europe and the United States. He was looking for something which would give his company and himself an edge, a leg up in the industry. His comments were eye opening - "Shopping centres in all the countries visited were largely the same. The same retailers, the same layout characteristics, same clothing styles on offer, similar shop sizes and similar finishes throughout."
He went on to say that marketing programmes in these shopping centres were based on the same seasonal themes globally. Valentine's Day, summer sales, autumn sales, winter sales, shopping festivals, religious holidays, country holidays, Mother's Day, Father's Day and so on are the common marketing themes globally. What was learned through the travel was that on the surface, it is difficult to differentiate one centre from another. Closer observation in the eyes of the retail professional, however, revealed that the success of each centre is measured in the success it enjoys in the niche it occupies.
What makes some shopping centres very successful and others just average boils down to the passion of the people involved, the vision of the owners, knowledge of the industry, the desire to create something special and the need to create something very different.
How important is retail to the economy? In many parts of the western world, retail accounts for up to 15 per cent of the countries' gross domestic product (GDP). In the UAE, the retail industry and trade account for approximately 29 per cent of the GDP.
Add aviation and the growth of tourism into the UAE with retail and trade and the number rises to approximately 54 per cent of the GDP. The retail industry in the UAE is a pillar of the economy and will continue to play a large role in the growth of the economy as part of its diversification.
Education is the cornerstone of the retail industry. Education is the key to enable your retail environment to stand out heads and shoulders above the rest. Sharing information, learning from the be
Khaleej Times
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