Retail Industry Sector

OVERVIEW

The industry outlook for consumer discretionary remain cautious as the pandemic has challenged businesses especially with rising unemployment rate globally. The shift to digital marketplace is a game changer for this industry.

CHALLENGES

The pandemic is a wake up call and has expedite the embrace on digital technology among businesses in this industry. The shift in consumer behavior has also changed more so among the younger generation on how they shop and the power of social media to influence consumerism. Businesses must identify new trend and strategy to tap into this dynamic market as the online environment is now becoming overwhelm with products and services. Challenges arise amid this pandemic include,

• Sudden drop in demand
• Changes in consumer taste and preferences
• Structural shift in consumer behavior, values and habits.
• Companies lack of digital capacity and logistic slow to recover.
• Credit implication, damage to credit quality and growing debt.
• Rise in online unauthorized dealers, black markets and scam.
• Disruptions in distribution channels, logistic lines and productions.
• Government intervention to protect local goods and markets.
• Recession, reduced mobility and falls in travel spending.

SOLUTIONS