Competitiveness Building to Confront Retail Business Transformation

Abstract

Competition is inevitable in the business world. One of the factors that will lead to success in competition is that a business is able to confront or manage any transformation that occurs. Therefore, in this article the researchers have the following objectives: to study 1) the driving factors for retail business transformation; to analyze 2) retail business transformation; and to propose 3) guidelines to build competitiveness to manage transformation. Findings are as follows: 1) The driving factors for retail business transformation are from emerging market growth, especially from Asian countries. Consumers’ needs are more complex and different. Consumers have a lower tolerance for waiting and expect to have a fast response. Retail business tends to spend more on the development of distribution channels in the form of retail stores. An adaptation is in the use of modern technology to reduce weaknesses. 2) The analysis shows that retail business transformation has led to a fragmented market. Competition is in speed and in a modernized retail business. 3) Guidelines to increase competitiveness can be easily conducted by using personalized marketing. This is to confront retail business fragmentation, to facilitate the entire shopping process to confront competition with speed, and to turn the store front into a modern space and to provide experience to confront the transformation of the modern retail business era.