Toys ‘R’ Us Bankruptcy Tells a Tale of What Could Possibly Go Wrong
There wouldn’t be any 90s kid who haven’t eagerly waited for their parents to go toy shopping for Christmas every year at Toys ‘R’ Us. When the company files bankruptcy on September 18th this year, it was devastating for many customers. Who wouldn’t recollect the fond memories of playing with Transformers, Pound Puppies, Barbies, G.I. Joes, My Little Ponies and all other exclusive catalog of toys the stores have offered over decades.
While a legendary chain of toy stores go bankrupt, it’s necessary for businesses to understand what could go wrong in the demanding market today. Based on our experience working across industries, here are our thoughts:
Online Marketing is THE TREND
It’s critical for any business to evolve over a period of time to meet the changing market trends. This is one reason why Toys ‘R’ Us couldn’t retain its customer base. Toys ‘R’ Us kids who have enjoyed shopping in stores, when grew up do not want to be Toys ‘R’ Us parents. They prefer buying toys online, which makes life easier. Statistics show that 41% of toys and games in America to be purchased online this year. Although they have begun online sales years ago, they are not as competitive as Amazon or Walmart.
Too Much Focus on Sales
For any businesses, sales and profit are the key factors, but to make a difference and a lasting impact, they also need to focus on improving customer experience to promote customer retention and to attain customer loyalty. Slashed prices, discounts and offers are attractive, but not necessarily impressive. To impress customers, businesses today need to build marketing strategies and aim at going beyond satisfaction.
Being a Niche Player is an Advantage & a Disadvantage
To be a niche player has advantages and disadvantages. While being a market player in an industry is the biggest advantage, the limited customer base makes for the greatest disadvantage. At some point of time, it becomes extremely competitive and not all can survive tough competition.
Providing the Right Product Information
Most bricks-and-mortar retailers when they go online, they tend to build a good inventory but fail to dissipate right product information. Compelling content and detailed product specifications have become basic necessity to improve online sales. The marketing strategy that works for physical store may not reap benefits online.
To survive and outshine online competition you need a strong digital marketing team. If you do not have one, the wisest decision is to partner with eCom experts like us!