Conducting proper research about the industry you want to go into as a retailer is of invaluable importance as it keeps you on track and enables you to focus on the important aspects of both your physical and online stores.
Retail Market Research is therefore defined as the continuous process of collecting data about the industry you are about to enter, the potential and existing competitors and also your target audience.
How do you do a Retail Market Research?
There are basically two types of retail market research which are Primary and Secondary.
The primary type is dependent on the data that you have collected by a personal research over time. It involves taking different approaches to collect information such as taking online and offline surveys, collecting customer reviews, having in-depth interviews with customers, checking sales records amidst others.
The secondary type involves you analyzing case studies, industry trends and other reports as relevant to your business that was done by someone else.
These two methods have a common goal which is to give you a proper understanding of the industry you are about to enter.
To have an effective retail market research, you must do the following:
Collect information on your industry. To know if there is a place in the market for the type of store you want to open, it is important to do a thorough research on the industry especially by paying attending to the secondary sources of information such as trade journals, local government data and research hubs.
Also, information collected should not depend on just one source, rather, multiple sources should be used to make sure that the data gathered is relevant, valid and accurate. By this, you will be able to determine the size of the market and how fast it is expanding or shrinking.
Research your competition. Identifying your competition in the market space and paying attention to vital details such as the quality of their products, their staff strength and their general marketing efforts will help you make decisions that will help you offer better services than your competitors and avoid the mistakes that they made.
Also, you should analyze your Strengths, Weaknesses, Opportunities and Threats and learn to maximize your Strengths and Opportunities and as well, reduce your weaknesses and threats.
Knowing who your customers are and being able to communicate with them on deeper levels will help you know their preferences and serve their needs better.
By using the right tools in your research such as competitor analysis tools, customer targeting tools, market research tools and using the social media to generate instant feedback, your business is sure to grow.
Conducting proper research on your business will help you in decision making processes by supplying relevant, up-to-date and accurate data needed.
It also helps provide solutions for developing your business, increasing profits, increasing sales and getting more satisfied customers.
The process of retail market research might look too long and unending, but it is the sure bet for growing a successful business in the long run.