Emerging Trends in Global Retail
Joel Stephen and Melina Cordero discuss the latest trends in cross-border retail.
The United States is an attractive global retail expansion market for a number of reasons: population, household income and average retail spend per household are chief among them. There’s also an incredible opportunity to scale and grow rapidly. While the United States is a great place for retailers to consider expanding, the factors on which they base those decisions has changed.
Where To Go
New York, San Francisco and Los Angeles are always key entry markets that are prime for flagship brand stores, but the middle of the country—including Chicago and Dallas—can also provide great opportunity. As well, brands need to weigh sereval factors when considering which market to enter, including proximity and access to any established consumer bases. Space availability and ease of entry to the market are also considered.
When entering the United States, even if only targeting one market, e-commerce strategy and fulfilment is at the center of the equation. The consumer demand for buy-online is high, and successful brands should start to formulate their supply chain operations early in the process.
Data and Analysis
More than ever, brands are relying on data rather than instinct to make expansion decisions. Knowing a target audience, and where in the US they’re located and how they consume goods, can help mitigate expansion risk. On the opposite end of the spectrum, brands have to account for an increasingly informed consumer. Expansion is not an opportunity for a brand to reinvent itself, as the consumer is likely already familiar with the product, price point and reputation. The brands that cross borders with ease are those that truly consider themselves global, rather than regional offshoots.
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