Technology and globalization are changing the retail landscape and successful retailers will be those who can respond and adapt to those changes, attendees of the National Retail Federation's annual convention were told on Monday.

National Retail Federation President and Chief Executive Tracy Mullin, Metro AG Chief Executive Hans-Joachim Koerber, and Microsoft Corp Chief Executive Steve Ballmer said technology and the Internet have altered how consumers shop and what they expect from retailers.

"Through blogs and consumer reviews, customers are letting the retailer know how they feel about shopping at their store or website, and whether they like the products they brought," Mullin said.

Retailers who have set up customer reviews, where shoppers can give feedback on products they have purchased, have reported more satisfied customers and fewer returns, she said, because consumers can learn from the experience of others and avoid products with bad reviews.

'Different position'

"The consumer is absolutely in a different position today and going forward than the consumer was in the past," Ballmer said. "The consumers' ability to get information, to be empowered, to know what's out there, to make intelligent decisions, to stay organized, to dispassionately assess alternatives, to be in control, has never been higher."

Consumers expect more personalization, tailoring and customization than ever before, he said, and they expect to be able to search and get information or shop from their home, over the Internet or on mobile devices.

"They expect to be at the center of everything that the businesses that serve them do," Ballmer said. "The ability for consumers to get information and be served in a variety of ways is only going to increase."

Metro's Koerber said the increasing digitalization of consumers' lives is something routine "that nobody can afford to ignore."

Growth opportunities

He also said retailers cannot ignore the growth opportunities coming from emerging markets like China, Russia, Ukraine, and India.

"In India, retailing is undergoing a crucial shift at the moment as supply moves from small mom and pops to larger outlets," he said.

He said Metro, a German retailer, is now in 30 countries with around 2,400 outlets, and roughly 56 percent of its sales come from abroad.

Ballmer said that in India and China, organized retail is taking off "in an unbelievable way."

Ballmer said competition is becoming much more global and more focused on giving the consumer "exactly what they want," with retailers trying to differentiate themselves through different store formats or experiences.

source: China Daily/Agencies