In today’s market, consumers certainly have unlimited choices when making purchases, and it will likely put online sellers or business owners to work harder simply to meet customer demands and preferences. Hence, it presents a consequential market challenge for them. In addition, online shopping could also be challenging for online sellers, as they constantly experience a decline in sales due to several factors such as counterfeit products, price dumping, supply chain issues, and most importantly, a lack of market research and customer insights.
One of the major market challenges is counterfeit products on various e-commerce platforms where they often lure customers with cheaper prices, but they lack the quality and reliability of genuine products. This may lead to customer disappointment after unknowingly purchase knockoff products, and eventually leads to negative reviews and damage the reputation of legitimate brand. Additionally, counterfeit products can also have a substantial negative impact on a business's revenue by causing a decline in sales of genuine products, leading to financial difficulties and instability.
Price dumping rivalry
As the business grows, some companies may use various strategies to ward off competitors, known as price dumping rivalry, it is when customers get cheaper prices due to higher sales volumes that causes price variations in the market. This will eventually result in the decline in industry profits as it causes economic and psychological harms on an individual, company, as well as industry profitability. However, there is a need for effective marketing, promotions, and rewards in order to attract more customers and to boost business revenue, which is one of Packtica’s expertise areas.
Consumer Loyalty for Sustainable Growth
Many business owners face challenges in retaining loyal customers and repeat orders, which may potentially harm their brand image. While offering discounts is one of the most common marketing strategies to attract more customers, however, business owners should consider investing in personalized marketing strategies that incorporate customer data collection systems, and advanced digital technology to deliver customized marketing contents, promotions, or product offerings. At Packtica, we offer advanced marketing solutions through our ‘Consumer Insights Cloud’ system, helping business owners foster long-term customer loyalty.
It is the challenge faced by a business in tracking and tracing their products journey throughout the supply chain. It involves knowing product transformation from its raw material into finished products, and their distribution to consumers. Plus, the other challenge also lies in implementing the system for effective traceability, as it can be costly, especially for SMEs. However, without effective traceability system, a business may find difficulties in ensuring product integrity, and fulfilling regulatory requirements, which may potentially harm their business reputation and profitability.