Continual business re-evaluation
The phrase Paris fashion evokes an image of attractive designer clothing that wraps the body in pure luxury. Sheer indulgence that says you are worth being pampered. But too often the hesitation to buy comes when prospective customers look at the price tag.
BUSINESS OPPORTUNITIES AND SHIFTS
A business opportunity arose when a couple of entrepreneurs realized that there were always a few items on the rack left unsold because of colour or size. This began a business where they would buy the unsold clothes from the fashion houses at a fraction of a cost for resale to discount stores across Europe. The business was a success.
However, over time the discount stores started to contact the fashion houses directly. Our entrepreneurs found their business under threat.
Internet technology came to their rescue. Setting up an E-commerce site they targeted consumers across Europe directly. This shift from a business to business (B2B) to a business to consumer (B2C) modal was a success. They had studied the market shifts and re-evaluated their entire business modal early enough.
To remain profitable a business must continually re-evaluate information and use it to innovate in response to changes in industry practices and consumer habits.
RESPONDING TO CHANGE
The internet has fundamentally shifted how perception about products is shaped and delivered to consumers. The ability for consumers to communicate their views and experiences to the world is influencing consumer choice. It is a form of brand democracy that levels the playing field for big and small business.
It requires businesses to have a continual conversation with their constituency customers, responding to their needs quickly. Already the organic food movement is reshaping the food industry. We see aisles of organic foods in supermarkets. This is the response from established businesses. Smaller organic produce stores are responding by utilizing E-commerce and identifying with desires for healthy living.
E-commerce has created a market shift in industries from travel to health and consumer goods. The role of marketing has expanded beyond obtaining market feedback while encouraging sales. Marketing personnel now have to get involved in business planning to reshape the business operation. They have to become change agents within the business. This is necessary to ensure timely response and continual business growth.
International Business Consultant
Reboot your business plan for sustained high growth.