9 of advantages it is also the key disadvantage for

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Unformatted text preview: make money at first • because it is big, it can support the loss and make money eventually 9. Very familiar and predictable • associated with shopping centers • same taste, services, etc. c D. Wang & C.Zhao, 2006 14 7 MARKET DEMAND CHANGES AND RETAIL SUPPLY RESPONSES • same design • once captured customers at one location, good for all locations • potential weakness: opportunity for independent store – short in flexibility – independent stores are more sensitive to local area, know the people, provide true services Disadvantage See the No.9 of advantages, it is also the key disadvantage for retail chains and is an opportunity for independent stores Mega-chain Solution • chains of chains • retail chains, power centers, shopping malls: very predictable environment 6.5 Re-emergence of non-store retailing E-commerce Definition: : commercial activities that is conducted through electronic or virtual form/plaforms • • • • 7 about 0.8% of the market share catalogue shopping shopping at home e-commerce & e-retailing Market Demand Changes and Retail Supply Responses 1. Population Size • P2 = P1 + (B – D) + (I – E) • ↓ growth rate • increase for large cities 2. Population distribution • focus on large places (small number of large places: strong theme) • cultural, physical geography 3. income : increasing • disposable income increasing to spend on things we don’t need • ↓ fuel, food, tobacco, alcohol, etc. (life-style) • increasing spending on services & travel 4. household size • only Ireland increases, all other countries decreased (life style) • condo development: for small family c D. Wang & C.Zhao, 2006 15 8 NON-STORE RETAILING • large number of small households • all need dishwashers as can afford it 5. age • • • • older, longer, fitter baby boomers get older substantial market a grey market, growing substantially 6. female participation: ↑ • in labor forces • changing attitude toward family • no c...
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This document was uploaded on 01/28/2014.

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