Three Major Trends That Are Holding Down The World’s Top Retail Brands

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Retail brands had limited gains on Interbrand’s recently released 100 Best Global Brands list for 2012.Why did that happen?

Interbrand’s Bruce Dybvad explains that there are three macro trends that are holding those retail brands down.

“Global retail leaders are continuously challenged to align with demand,” writes Dybvad. 

“That means engaging customers through any means possible, including innovations in mobile technology; increased emphasis on inventory management; brand extensions and global expansion; and innovating with the customer to capitalise on best opportunities.”

Here are the three trends that Dybvad identifies:

The cost of commodities is up — Companies have to be more efficient while still maintaining quality levels, and so they’re figuring out new ways to cut costs. This means looking to labour, shipping, storage and more to keep costs low.

Consumer spending is constrained —  Income growth is slow and consumer confidence still hasn’t fully returned, so people aren’t flocking to their local malls to buy.

Power is shifting to the shopper — Social media is forcing retailers to be more transparent and engaging, and it’s “irreversible.” A dialogue between the brand and the customer has been created, and it’s no longer a one-way street.