Modern marketing efforts place a large emphasis on predicting consumer behavior. Utilizing software programs, cookies, and other advanced technology tools, businesses can work to reach their target audiences.
E-commerce sites have completely embraced the benefits of big data to dominate the retail sector and generate revenue. Although the collection and interpretation of big data produces exponentially higher returns than traditional marketing methods, finding the audience does not equal converting prospects to customers. Both sales and marketing executive teams still have to put in the work to produce the results.
Specialty Retail Products
The evolution of the retail industry took decades to gain momentum. From the general store to the corner store, entrepreneurs typically used one single approach to their business planning methods. Business owners simply wanted to provide a product or service that met a need for their local community. Since even the earliest industry pioneers intended to turn a profit, the retail sector has consistently experienced continual growth.
Around the same time as the advent of computers, visionaries began to develop plans for the future of the retail industry. E-commerce was introduced into the global marketplace well before the personal computer was available to the masses.
Technology companies like CompuServe and Boston Computer Exchange were among the first to test these unpredictable waters. The advanced technologies certainly made it easier for companies to do business, but the end results were not geared toward consumers as the primary users.
Growth of E-commerce
The evolution of the retail industry may have had a relatively slow start, but the recent growth is impressive.
Each year, hundreds of new candidates enter the e-commerce market and cover virtually every imaginable industry. Consumers depend on the availability of rare items, flexible shipping options, and even convenient subscriptions that make purchases for them on a recurring basis. In 2021, retail e-commerce sales amounted to approximately 4.9 trillion U.S. dollars worldwide. This figure is forecast to grow by 50 percent over the next four years, reaching about 7.4 trillion dollars by 2025.
One prominent reason for the continued exponential growth is that marketing tools have become so precise and useful. Big box stores and e-commerce giants are not the only entities cornering the marketplace today. Virtually any business owner can build an interactive website with shopping cart technology. Couple that low-cost investment with digital marketing services and big data for an income generating asset.
A shrinking global economy and multiple shared e-commerce sites has proven that entrepreneurs from anywhere in the world can bring their goods and services to the world market.
Appraising Retail Potential
The retail industry can be difficult to navigate, especially for businesses who are considering moving between brick and mortar and e-commerce. From appraising fixed assets and capital costs to evaluating the startup or investment costs of moving to e-commerce, our team has proudly served a number diverse clients for more than three decades. We understand the nuances of each industry and provide reports that consider all relevant circumstances based on the request and needs of our clients. Let our valuation experts help you make informed decisions!