Market Challenges
Today, consumers have up to thousands of options to choose from when making a purchase. In order to strike a deal among of competitors, sellers put extra efforts to fulfil customers' request. This post up a huge market challenge for online sellers and brand owners.
With the internet and booming e-commerce platforms, becoming an online sellers and retailers have expended exponentially. Informations and data are easily obtained by next potential buyers. Frequent online shoppers can easily conduct research such as reviews, user experiences and unboxing videos about the product prior to purchase.
With consumer reviews, unboxing videos, and user generated contents selling has become more and more challenging. Many businesses face a drop in sales due to a few factors. Some of the challengers like counterfeit products, price dumping, poor supply chain stock flow, unable to capture market data and know your customers well has made businesses notably difficult.
Product Counterfeiting
Counterfeit is the most critical IP issue for both the brand owners and consumers to date. As a brand owner, counterfeits affect their business revenue directly and indirectly, not to mention counterfeit or fake consumer products pose significant health and safety risks for users and consumers.
A simple fact: Counterfeiting is unethical, profitable, low-risk, high-reward business.
Counterfeit goods could potential spread across the market fast due to the attractive cheaper price. The internet provide a channel and make it easier to reach and deceive consumers while avoiding enforcement detections by using multiple websites and e-commerce platforms.
Price Dumping Rival
The process of creating the right product and identifying the right audience does not happen overnight. An effective marketing campaign, right promotions, and attractive rewards come in a package to attract more dealers and sellers into the business. This means higher revenue for the business.
As the business grows, there will be a gray area for some dealers to get higher margin prices over others in the market. Strong dealers are likely to have a better price advantage over new dealers due to monthly unit volume orders. Often, dealers with a big volume of products would tend to sell at lower price compare retail market price. This is normal as dealers would need a better cash flow. When this happens, the prices of the products vary across the market. This is called price dumping. This causes a butterfly effect fluttering, the company's brand name and consumer trust towards the brand.
The impact will be serious in long run for business owners. Price dumping happens to many industries and across regions. Efforts to build a good name for the brands would be affected by this unethical activity. A more serious situation distribution channel by those unethical dealers might drop if they decided to leave the company. Business and brand owners need to address this matter with a serious heart, and Packtica specialised in this area.
Consumer Loyalty to Achieve Profitable Long-term Growth
One of the common practices traditional business sellers make is to sell at a discounted price to win more customers. Neglecting the customer buying experience online and offline could be the main factor to retain customer repeat orders in the recent trends. A bad experience would reflect permanent bad reviews online and leave a negative impact on the brand.
Personalized marketing certainly contributes to long-term customer loyalty. This one-to-one marketing is a marketing strategy by which a company leverage data analysis and digital technology to deliver individualise messages, promotion, and product offerings to current or potential customers.
Challanges for most business owners in the current market would be on the technology adaption, restructuring the entire business model, and legal liabilities. Investing in customer data collection system would greatly gives a positive impact on long-term customer loyalty. In Packtica, we have unique solutions to help business owners in South East Asia to help bring their business to the next level.
Traceability
Product traceability is the ability to identify, trace, and trace elements of products as they move along the supply chain from raw goods to finished goods. For most, the SME's business owners and brand owners might be costly to implement and it may involve huge manpower.
Tracking capabilities enable organizations to closely follow the progress of a product throughout the manufacturing process (sometimes, from the supplier as well) and on to the final consumer. Tracing allows organizations to discover the origination and history of products.
Lack of traceability compels the disappearance of product integrity and profit.