5 Things to Consider When Setting Up a Retail Business in 2021

Even though we are well into 2021, the health crisis that has marked the previous year and the many changes it has brought about are still lingering. In fact, the events of 2020 have defined what this year will look like to a great extent, and the many uncertainties everyone is facing. For business owners and aspiring entrepreneurs, the challenges of setting up their companies are all the greater – competition remains fierce, but the conditions in which you need to succeed are harsher than ever.

However, the simple truth is: people need to buy things, and always will. With that in mind, many have decided to start their online retail business, knowing that this digital shopping trend will persevere. Then again, it seems that many eager professionals know that we will also crave more personal shopping experiences and one-on-one interactions in physical stores (albeit with fewer crowds). This is pushing people to start their own retail companies that will remain both brick-and-mortar, but digital, as well. If you wish to enter the retail waters in 2021, here’s what you need to know.

Financial stability is essential

Considering the extent of the health crisis, it’s natural to expect financial issues in the upcoming period. The economy is already buckling under the immense pressure of the pandemic, and if you wish to stay solvent, you need a strong financial foundation.

In addition to pouring your own savings into the venture, make sure to look for strong and long-term investors that have experience with the retail sector. That way, you’ll not just benefit from their funds, but also from their existing industry expertise as you grow your own brand.

Technology in the service of health

One major shift that customers and retail brands will need to embrace involves a greater emphasis on prevention and health. The pandemic has put every business on high alert, so naturally, when you want to start your own retail company, you know that even with a seamless online experience, some face-to-face interactions are inevitable. From warehouse managers, inventory, all the way to shipping and the like, your staff and your customers will come into contact. How you ensure their safety will make or break your business.

Prepare your business by assigning a covid contact tracing card to each employee that works in a team or interacts with customers. These cards can detect and measure close interactions, so that you can remind your employees to follow the social distancing protocols, and still manage to build close bonds with customers, in a safe manner. In case someone does get sick, you’ll have the necessary data to inform anyone who’s been in contact with that person and prevent further infections. Such measures serve to help in these difficult times, but they also protect your reputation for much, much longer.

Prepare top-notch customer service

With a superb product selection, half of your battle is done. The rest of it will rely on equally superb customer service and support, since it has become vital for companies to connect with their target demographic. Use an integrated CRM system that will help you stay on track with all ongoing customer issues, but also make sure you use social media messaging apps, email, and phone lines to make yourself available.

Add to that, AI-based chatbots can help you serve your customers more quickly and efficiently, without overburdening your staff. This approach will allow you to automate various processes, but also make sure all your customer-facing interactions have that much-needed human touch.

Personalization across the board

An abundance of options makes it difficult for your brand to offer just another, run-of-the-mill product and get noticed. That is why you need to communicate better with your audience in order to build long-lasting relationships, as opposed to inspiring one-off purchases. The modern customer has specific expectations from retail companies, one of which includes personalization across all channels.

Let your digital stores become reflections of each customer’s preferences: landing pages with recommendations that reflect their unique preferences, discounts for their birthday, offers that match their previous browsing, etc. Send them personalized emails, gift certificates, but also let your customer support teams leverage data to make smarter, more personalized offers to cross and up-sell. Train and educate your staff at the store to do the same when people come to buy in your physical shop.

Know how to market your retail brand

Having shelves brimming with brilliant products is of absolutely no use if people have no idea that you exist, how to find you, or why they should spend money on what you’re offering. What makes you different from everyone else in the industry? What are you doing differently from your competitors? Are you engaging with your potential customers, working with local businesses and influencers, contributing to your community?

Focus on how you will market your retail business as you build the brand. You need to know where your brand fits, how you can tailor your strategies, and how you can maximize the impact of paid ads, SEO, as well as content output to attract more buyers. More importantly, you need to attract return customers, since loyalty is what will make your brand memorable and relevant in your local market.

With or without previous retail experience, the 2021 retail market will come with a slew of unexpected challenges and risks due to the pandemic that has marked the previous year, as much as it will mark this one. Knowing that your customers’ behavior, habits, and expectations are changing, you can still enter the playing field properly prepared to succeed, provided that you’re ready to create a strategy that includes these and many other steps to ensure your business presence.