Our Thoughts > How to analyze your marketplace? 3 steps to help you start your retail business dream!
How to analyze your marketplace? 3 steps to help you start your retail business dream!
A good location means foot traffic, regular customers, and stable growth revenue. But how to choose the right location?
Do you want to have your own business? If yes, most of people will choose retail to start their business. Because it is the easiest business to start. However, if you want to own a successful one, it is not easy. There are lots of reasons to affect the result, and one of important factors is location. A good location means foot traffic, regular customers, and stable growth revenue. But how to choose the right location? Here’s are 3 steps to help you find out the right location for your business.
Marketplaceis a location where people regularly gather for the purchase and sale of provisions, livestock, and other goods, but now marketplace will add different kinds of stores, restaurants, business buildings, and hotels. Marketplace not only can increase economy but also improve the constructions such as transportation, the art gallery, and so on. Marketplaces fall into 7 main categories when grouped by target audience:
Metropolitan Type: A place where has shopping malls, markets, and other leisure places for people who live in the city such as Taipei Eastern District, and Taipei Xinyi Special District.
Society Type: The majority of customers are local people such as Taipei Minsheng Community.
Commercial Type: The majority of customers are office workers, so usually daytime foot traffic is more than the night time.
Transfer Transportation Type: It’s a transfer station for trains, MRT, and buses, so the majority of consumers will not linger in a store or shop for a long time.
Campus Type: The majority of consumers are students, and faculties such as Gongguan where near Taiwan National University. However, it has an obvious off seasons especially during winter and summer vacation.
Tourism Type: The main customers are tourists, so foot traffic is not stable especially during a hard time – COVID-19.
Night Market Type: The majority of consumers are locals and tourists, therefore, night time foot traffic is more than daytime. For example, Taipei Ningxia Night Market.
Why we need to analyze marketplace? The importance of location?
Owning a retail store is easy, but running a successful one is difficult. Retail business is extremely competitive, but you can start your business that stands out among the competition by analyzing marketplace, products, customers’ behavior, and competitors. Analyzing marketplace not only can help you realize your target audiences but also can help you estimate your revenue through consuming ability and foot traffic to avoid deficit.
How to analyze marketplace? 3 tips help you find out the best physical location.
1. The Scale of Marketplace
Want to growth your revenue? You need to find a place that has a sufficient foot traffic, especially your target audiences. More target audiences with right marketing strategy will help to increase your revenue.
2. The Quality of Marketplace
Even though foot traffic is important, the quality of marketplace is also important. The more target audiences means the quality of marketplace is high, on the contrary, the low target audiences means the quality is low. The quality of marketplace also includes ages, sexual, income, position, and so on. All of them can help you evaluate this marketplace is suitable or not. For example, if you open a store in a residential area, the majority of consumers are locals, and they will prefer to buy food and groceries. Therefore, we can infer that this area is more suitable for supermarkets.
No matter which type of retail business you decide to do, it is almost certain that there are other stores offering a similar product to yours. Therefore, you will need to know more about your competitors’ price, the quality of the products, and the services they’re offering, and to gain an edge over them when you are analyzing marketplace.
If you want to run a successful retail business, you need to analyze marketplace.
Knowing your foot traffic and target audiences can help you choose right marketing strategies.
Analyzing competitors is an essential tactic for finding out what your competitors are doing and what kind of threat they present to the success of your business.