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| The current circumstances driving the need for retail support among companies include: |
In recent years there has been an increase in the
number products that require explanations, as simply listing such products
and services in catalogues or advertising in the media is not sufficient
to demonstrate their merits. That is why the emphasis in corporate
sales strategies is being shifted from awareness of brands and products
toward in-store sales promotions and retail support.
Explanation-type products include sophisticated and feature-rich
products such
as personal computers, DVD players, digital cameras and other digital consumer
electronics, contract-based products such as mobile telephones, broadband services
and credit cards, and trial-based products such as alcohol beverages and daily
items. |
| Competition to develop new products and services has led to shorter product lifespans, and inevitably
a focus on product strategies that deliver a "vertical start." By appealing directly to customers at the stores where they make their purchases, sales targets can be achieved within a short period of time. |
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| Competition between stores is growing, and it is not an easy matter to raise sales or maintain profits. That
is why companies are focusing on larger-scale stores and low-cost
operations, and there is a shortage of staff to interact with customers. Stores need a steady supply of staff to provide thorough sales follow-up and in-store encouragement for purchases. Companies also need to understand what sort of activities the stores want, and to provide more effective sales activity. |
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| For companies to set up an
adequate sales support structure, however, takes time, energy and
capital. More companies are turning to outsourcing as a means to create a retail support structure quickly and with minimum hassle. |
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