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bappy7
Posts: 253
Joined: Tue Dec 17, 2024 4:39 am

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Post by bappy7 »

Physical stores are losing market share
With the rise of the internet, stores have started to lose market share to online stores. The strange thing is that online market share is fought for in a different way, based on different principles. This makes it impossible for many stores to maintain market share with 'channel diversity'. The graph for online retailers is completely different:


In the middle of the curve, the market is fought over by similar retailers, who are at the brother cell phone list mercy of price comparison sites. And these price comparison sites push the consumer (and therefore also suppliers) to the left, to where the profits are gone. A supplier who provides standard construction services to consumers said to me: "The one who makes a calculation error, and therefore makes a loss, has the business". This makes it difficult to survive as a small independent.

Low-cost and top segment
There is still profit to be made for the retailers who can deliver very lean & mean. These price fighters get their articles in large numbers from low-wage countries and often have less attention to the quality of the product or service. However, the start-up costs for such a formula are usually very high. The way the banks are acting now, this is only for people who can finance it from their own pockets.
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