Vests may be in today but, tomorrow high waisted jeans are so in. Fashion is constantly changing and just like that the retail industry is constantly evolving. I focused on the cost of retail and how it has changed over the years. I broke down the information I found into the Past, Present, and Future. I further divided it into the Price of Goods, Occupancy Costs, and Marketing Costs. This helped organize this information and easily compare all the information. The common disruptor in all three is technology. With new machines and softwares, producing goods has become a lot cheaper and easier. It is more efficient than a human. This technology has replaced the actual store and salespeople too because now people focus on online shopping.
We started in the past with a higher cost to produce due to having little to no technology. There were occupancy costs associated with the store, holding areas, and factories. They also had to hire more employees to sell and produce goods. Most of their marketing budget went towards billboards, tv/radio ads, and print ads.
We go into the present where we are surrounded by technology and see that the price of producing has gone down because we have replaced humans with more efficient and fast machines. The occupancy costs are similar to the past. Today, companies focus on digital marketing with website, social media, and targeted advertisements.
Looking towards the future, a big question comes up. Will there be a brick and mortar store? What will companies do with online ad blocking softwares? How cheap will it become to produce goods with faster and smarter technology? Find out more about the Disruption in the Cost of Retail in this video!