Based on an article published by USnews, the top 10 retailers who are surviving despite the recession have some attributes such as:
1. Conservative Expansion Mode
Prior to the economy crisis, a lot of growing companies borrowed heavily to expand based on overly optimistic projection. When the economy crashes, and the effect is felt right to the consumers, these companies buckled as they were not able to repay the debts with sharp decline in sales.
Companies that built a stronger foundation during good times and expand only when they are really financially stable are able to survive through this tough times. The tortoise wins out the hare in the hard times.
2. Offering discount or cheap products
As much as we want quality, when inflow of cash is so restricted, majority of people would no longer afford luxury or expensive products. Most would rather eat in, at hawker stalls or food courts rather than more expensive restaurants. With the petrol price hike and price increase in flour/sugar, you can really save a lot of money if you were to eat in.
When it comes to desperate times, switching to humble tastes and going for generic brands become possible because after all, everyone is doing it. It is no longer embarrassing to be seen in denim bought from a discount store. For some, this new found habit becomes a lifelong practice.
3. Trend towards online transactions and booking.
Doing performing transactions online such as paying bills, fund transfer or booking a holiday package can really save a lot of time. Furthermore, companies that predominantly runs an online business would be in a position to provide better deals to their customers due to the low overhead cost. A company who is willing to invest in offering online purchases of their products and services can effectively cut down cost, and as the result, would be able to provide a better deal to the customer.
Many companies do not even have their own personal websites- which in my opinion, they lose out a lot on potential sales, and is working on a higher overhead cost that it has to be. It also loses out on recognition and potential sales because potential clients would tend to perform a search on the company to check out the company’s official website. For good professional image, a company should always invest in a website with its own domain name instead of using free hosting and domain. I will be writing more articles on why every serious company must have a functional, user-friendly and updated website.