Technological and social transformations in the retail sector

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 Table of Contents

Technological and social transformations in the retail sector ..................................................................... 3

Technological transformation .................................................................................................................. 3
Social transformation ............................................................................................................................... 3
Evaluation of the transformation occurring in marketing practices ............................................................ 4
Conclusion ................................................................................................................................................... 5
Reference List .............................................................................................................................................. 6

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Technological and social transformations in the retail sector

Transformation is one of the essential components in marketing because companies need to respond

constantly towards the rapidly changing market environment. The retail industry has been transformed

due to major social and technological changes.

Technological transformation

Technology can be considered as a catalyst or enabler of change. It speeds up the entire process of

marketing. Additionally, it saves the overall cost of the company. The best way to attract and retain

customers in the retail industry is to constantly improve or leverage online presence (Blitz, 2016).

Moreover, technology has enabled open communication between buyers and sellers and it has become

easier for companies operating within the retail sector to make changes in their services and products

based on customer feedback. It has also enabled companies to keep a record of the buying trends of

customers. After receiving the feedbacks, the companies can now make improvements in their

promotional strategies as well as quality and standards of their products. The concept of a physical store

has been replaced by online store, as it is quite easy and accessible for customers. The effect of

technology is paramount in customer outreach. “Digital customer” is a term commonly used nowadays

because customers are quite well informed in research and finding the best products and services online.

It provides a flawless experience. Over the years, the retail industry has focussed upon expanding its

customer outreach. Therefore, companies have invested in improving their IT department.

Social transformation

The retail sector has to revolutionise its marketing strategies based on social changes. Here, it should be

noted that the preferences and tastes of customers vary according to changing social environments. The

age group is a crucial factor that should be considered and the growth of the retail industry depends upon

adapting to the needs of young customers. The young generation prefers online shopping and therefore,

the retail sector is focussed upon building brand’s website (Laudon and Traver, 2016). The retail sector

has also focussed upon sustainable practices and therefore price of products and services has been kept
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customer-friendly. Customers find it convenient to shop online and in order to retain them; companies

have focussed upon giving discounts. The ultimate buying decision is upon the customers and therefore

prices have been adapted based on the lifestyle and socio-economic status of the target customers.

Advertising preferences and perceptions of customers might vary and therefore, companies are focussed

upon this particular social factor in order to retain their customer base. Additionally, expectations of

people from a known brand are likely to be more and the retail sector is, therefore, improving its appeal

towards the target audience. Further based on the income levels of the market segment, it is essential for

companies to increase or decrease prices (Roy et al., 2018).

Evaluation of the transformation occurring in marketing practices

After analysing the social and technological factors that transform the retail industry, it can be stated that

the primary focus of companies is to broaden their digital presence. Digital marketing is one of the

profitable strategies adopted by retail companies. Instagram and blog posts are a great platform to

promote products (Knights and Tinker, 2016). Additionally, choosing an “influencer” can also promote

brand awareness of the company. Moreover, content marketing is an effective marketing strategy

because technological transformation allows greater visibility of the brand. This, in turn, generates sales

of services and products. Especially clothing brands focus upon providing styling tips as a way of

marketing their items. It becomes easier to gain the attention of the target customers because they are

also looking for exclusive styling tips. In order to draw the millennial generation, it has become essential

for companies like Yeechoo and Amazon to create an attractive brand image.

In the case of Yeechoo, the company has been transforming its practices so that it can attract women

consumers. In today’s world, the lifestyle of women has changed drastically and the focus is given more

upon designer outfits for every occasion. Firstly, technology has played a crucial part in marketing and

consequently the company has focussed upon increasing its digital footprint (Quaddus et. al., 2018). For

instance, in order to attract buyers, the organisation has focussed upon targeting active Instagram users.

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Today’s shoppers are simply attracted by visual content and utilising this opportunity has been quite

helpful for Yeechoo. Customers to rent items can use the online platform and they have to pay much less

in comparison to other rental platforms. The company has transformed its marketing practices since

2011. Previously it used to operate only during special occasions. However, now the focus is upon

meeting the needs of their huge customer base. The company has made investments to create an offline

presence as well it is operating in Hong Kong and here customers find it convenient to purchase products

offline. The company has taken an integrative approach by focussing upon the social as well as

technological factors.

Further, one of the useful marketing strategies of Yeechoo is offering cheaper items in comparison to its

competitors. Hence, it focussed upon providing high-quality products at low prices, which is the need for

demanding customers in Asia. The company is already competing with other established brands and

therefore success depends upon carefully choosing and adapting to the social changes affecting the retail

industry. One of the ways utilised by the company is providing a range of clothing items and this, in turn,

satisfied customers as they have enough pieces to choose. Hence, it can be stated that the company has

redefined its industry.

Conclusion

In the digital era, a retail organisation such as Yeechoo has faced multiple barriers in order to establish

its brand name in Asian and American markets. Hence, it can be concluded that the survival of a brand

totally depends upon the exposure it gets. Profit generation largely depends upon the social and

technological environment within which the organisation is operating. It is also crucial to adapt and

respond to the constantly changing needs of the market. Hence, adopting an integrative approach can be

considered as a sustainable marketing strategy. Understanding consumer behaviour, as well as the

rapidly changing technology, is a crucial component in the retail industry.

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Reference

Blitz, A., 2016. Beset by the digital revolution successful retailers embrace technology that enhances

customer value. Strategy & Leadership, 44(6), pp.16-24.

Knights, D. and Tinker, T. eds., 2016. Financial institutions and social transformations: International

studies of a sector. Springer.

Laudon, K.C. and Traver, C.G., 2016. E-commerce: business, technology, society.

Roy, S. K., Balaji, M. S., Quazi, A., & Quaddus, M. (2018). Predictors of customer acceptance of and

resistance to smart technologies in the retail sector. Journal of Retailing and Consumer Services, 42,

147-160.

Roy, S.K., Balaji, M.S., Quazi, A. and Quaddus, M., 2018. Predictors of customer acceptance of and

resistance to smart technologies in the retail sector. Journal of Retailing and Consumer Services, 42,

pp.147-160.