Challenges in retail Stores

These days the retail industry in fashion made some significant changes. It is more than just
clothes today; it is an expression of oneself for few people. This has been driving the
purchases in the fashion industry There are various challenges faced by Raymond in their
retail stores.
There is a rise in E- commerce websites too which had major contribution to the fashion
industry in retail. This led to a raise in competition in this industry and now there are
thousands of brands available for the customers. So, its very difficult to predict the customer
preferences as well. The unique challenges faced by Raymond in its fashion retail store are:

1. Low Customer Sentiments

Since there are various brands available near the customers, they are facing a huge
competition. Fashion merchants are putting in a lot of effort to attract customers' attention and
provide them with an exclusive experience. Brand loyalty will be rewarded only to those
brands that are effective in creating interaction and attracting an audience. Retailers have
enticed customers by giving tablets on which they may study and buy their favourite
products, implementing a click-and-collect strategy, and providing in-store entertainment.

2. Heavy discounting by players to clear old inventory including on

ecommerce marketplaces, and extended end of season sale (EoSS).
Fashion retailers are increasingly depending on a discounting culture to increase sales. This
rise in discounting culture has resulted in a proliferation of sale banners at shopping malls
and on the streets. On important occasions such as Black Friday, Christmas, and Cyber
Monday, there are also fashion retail establishments that offer big discounts. As a result, it's
difficult for those players who want to maintain a good margin while their competitors
provide steep discounts. Alluring price cuts are also mounting pressure on margins.

3. Right Products given to Right Customers

Seasonal changes prompt brands to create new collections. They usually release new designs
every 2-3 seasons. It takes a lot longer to get to market. As a result, brands must adhere to the
right time, right place, right customer, and right price strategy.
4. Rising E commerce 
Increased internet shopping websites are one of the biggest difficulties facing the fashion
retail business. E-commerce companies have a simple return policy, and according to a
survey, approximately 92 percent of customers will buy again if the return policy is simple.
While selling clothes, these websites make online shopping more affordable, light, and risk-
free. Because of the popularity of these e-commerce websites, physical shop retailers are
adopting the same strategy as online companies. Consumer behaviour has changed as a result
of the rise of e-commerce. Furthermore, they consider online networks to be a decent
substitute for a local shopping mall.

5. Sustainability
Concerns about poor environmental conditions are growing, and multinational brands are
willing to develop products in a more sustainable manner. The circular economy model is one
of these measures. Materials that would otherwise end up in a nearby landfill are repurposed
here to make new items. Companies will require better visibility and control over recycled
resources to adapt to this paradigm. As a result, it can be a big barrier for firms with
fragmented systems, siloed teams, inefficient procedures, or the inability to access
information. It's because a responsible mentality necessitates tracking recycled materials and
pertinent data throughout the Product Lifecycle Management process.
Future Course of Action
1. Enhancement of product line by exploring the women’s segment
Raymond is predominantly known as the men’s brand. To expand its business, Raymond
should plan to enter into new segments - exclusively for women. It should develop its formal
wear to strengthen its position in the country’s apparel market. It can also look into acquiring
an established business brand to obtain quick results.

Expanding in Kids segment:

On a side note, Raymond can also become a full wardrobe band after focussing on women’s
wear by entering into the kids wear in a similar fashion.

2.Domestic men's grooming industry

Beauty is for everyone —This has shifted the perception of people and has led the male
beauty industry. It continues to grow at a very rapid pace to be on par with its female
counterpart. According to a report, the global male grooming industry is estimated to reach
around USD 81.2 billion by 2024. Tapping this industry further would be a great chance to
Raymond.

3. Global expansion
In the world of globalization, Raymond has great chance to expand its business by focussing
on various countries with business culture and not only in Southeast Asia, West Asia and
Africa. While the Raymond already has about 20 Made to Measure (MTM) stores in South
and West Asian nations, entering the developed markets might be a challenge. But its
possible by appointing master franchises. Also, with the increase in competition from various
international brands, Raymond should position itself with creative brand strategy.