The Surprising Trend for Business in 2019by Fintechnews Singapore December 26, 2018
Big business is getting smaller. It is all over the financial columns of the world at present.
Businesses that rely on big stores with the associated expenses of large premises are suffering. Rents and rates are going up and customer footfall is dwindling. Customers are thinking: why go out to shop when you can stay at home and do it all online?
Therefore, canny businesses are realising that all they really need is an Internet store which comes with two major benefits:
Having a predominantly online retail presence immediately saves on ground rental, rates, utilities such as gas, electricity and water. A further saving is made on staff salaries as the shop does not need to be physically open. Storage space for products can be sourced far more cheaply than retail premises as it can be found on the outskirts of towns – or even in one’s spare bedroom or garage, depending on the products offered And of course, there is no need to spend on décor to please discerning customers making their choices.
A physical store can only ever have a certain range: people might be prepared to travel a few miles to find very special items, but in most cases they want to travel as little as possible and get as much of their shopping done in one place as they can. This tendency is even more pronounced in people who do not have ready access to a vehicle and have to rely on public transport to get around and about, carrying their purchases home, sometimes with difficulty.
An online store is available all the time, so that people can do their shopping when they want to, whether it is first thing in the morning or at midnight, from the comfort of home. It is possible to order items from far away, even from different countries thanks to the widespread connectivity offered by the internet. This means that customers have tremendous choice in the items they buy: they can now afford to be choosy and pick only the best of the items they want.
While this may seem a negative, losing businesses the custom of those who live nearby, in fact, it can be a huge positive, especially if the business is prepared to take steps to offer an excellent product or service. This way, they can attract business from all over Singapore and beyond, if the offering is right.
Setting up a website from scratch can be daunting, especially with the need for payment links to be completely trustworthy. Very small businesses sometimes delay setting up their online presence if they lack the technical savvy required: but there are sites that can help, offering a ready-to-use framework upon which an online company can easily be laid out.
Sites like these, such as Singaporean Shopify, have all the necessary infrastructure to set up an online company and get straight into business. With the growing global move towards online shopping, it is only sensible for companies to consider downsizing physically, while expanding immensely online.
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