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While starting up a retail business of your own, one of the first decisions you need to make is what type of products you will be trading in. And this is no easy decision. Any market can become an insurmountable challenge for an experienced retailer if there is a lack of demand for the products being sold.

Market mavens say that your ability to pick up the right product is the very first step to success. So dont be in a rush to make up your mind, and take a few moments to read what weve got to say.

Like what you do: Doing some consumer research can give you an idea of the right product to take up for your retail venture. But remember, in todays world, with huge competition around, thats not enough! You certainly need to have an interest and adequate skill in that particular domain of business. Thats the only way youre going to last the long haul.

Carry personal conviction: Take up something that you will feel excited about selling. Before you can convince others, you need to develop a strong personal belief in the value of your products.

Take the case of Anita Roddick, the person behind The Body Shop. Anita was deeply committed to the usage of only natural ingredients in her cosmetics, besides being totally against animal testing. Her company was the first green company in England. It was her passion, apart from the quality of her products that won peoples hearts.

Establish a difference: Many entrepreneurs have tried to ride the boom in the retail industry. As a consequence, there is a mind boggling array of products to be bought. How do you differentiate your products from those sold by Joe next door? By making your offering a bit unique!

Innovation is the key to tapping a competitive market. And sometimes you have to think way out of the box to establish a competitive advantage. Christian Dior scored a hit in one of the shows with a dress they made out of newspaper. In that case, it was sheer novelty value that caught the buyers attention. The company later created a version of the dress in newsprint-look fabric which was a roaring commercial success.

Low price equals Great sales, right? Wrong!

While this theory may work in many markets, its not a universal rule. So, consider the market sensibilities before you launch an all out price war. Sometimes, you might devalue a product with a good image by discounting it aggressively and lose all your customers in the bargain!

Dont believe us?

Swedish home furniture giant Ikea stumbled badly in Japan when it entered the quality-conscious market many years ago. The Japanese are known to prefer high quality merchandise over low price. Ikeas lower-priced products were harshly rejected by them.

The worlds largest retailer Wal-Mart met with a similar fate when its everyday low prices boomeranged badly.

Customize your product: Are you sure that your product is correctly adapted to the target market? Take some time to understand the subtler aspects of market demand and customize your product accordingly.

Let us go back to the Ikea example. Ikea is famous all over the world for its furniture which is affordable as well as contemporary in design. When the company entered the US market, it was confident of succeeding. However, the bedroom-line Manager at Ikea visited peoples houses to peep into their wardrobes and learnt that Americans prefer to store most of their clothes folded. The result was a wardrobe that had deeper drawers. Many other well-established brands customized their products while making a move to a new market, even after registering a high demand.

So, remember that a lot more goes into your product decision that the actual product itself. Cover all your bases, to make your way to success!

My name is Kanakdeep

I work at http://www.aykya.com which is a new portal to help Entrepreneurs succeed in their Business. http://www.aykya.com is an Entrepreneur's portal which provides high quality ideas & tips to help you start & grow your business successfully.

posted by gektal  # 5:41 PM 0 comments