Old business models are under pressure

[bappy7]

The business models of the store are increasingly under pressure, as the consumer starts to behave more schizophrenically. Old dogmas are working less and less, which is why the results are lagging behind. 15 years ago, the market was still divided as in the graph; as a retailer you could choose where you would sit on the horizontal axis and you had determined your target group:


This image is no longer available.
Too cheap and too expensive meant that you would make a loss. Every other choice in between forced the retailer to adapt the style of the offer and presentations around it to the segment. The number of competitors in your segmen brother cell phone list then determined whether you had a chance to survive as a retailer. For example, Bristol and Zeeman, located quite to the left in the segment, have a cheap brand image, the stores are practically furnished and the service is minimal. The profit per transaction is minimal, but the formula successfully gambles on high volumes. This type of formula has little to no trouble with online price comparisons, but they probably do not have the resources to deal with this in real time.

In the middle you will find target group/price combinations such as Cool Cat, H&M, Esprit and Superstar. On the far right you will find couturiers and exclusive boutiques. All quite clear. Competing was the magic tool to survive in your segment. Competing on image and/or the location of your store.