Who is a direct marketer?

This is an important question, as the term "direct marketing" is often associated with the energy sector when electricity is sold on the electricity exchange. This is not what we are talking about here. Direct marketing - as we mean it - refers to the retail sector. This refers to businesses such as farm stores or decoration stores that sell their goods directly to customers on site or perhaps also have an online store online shop.

What challenges do direct marketers face?

Change is not a new phenomenon. However, the pace at which markets, consumer behavior and political conditions have changed has increased significantly in recent years. One example is digitalization, which is influencing all areas of retail - from purchasing to marketing and sales. And that is by no means all. Here is an overview of the most important challenges for direct marketers.

• Online retail: Have you ordered anything on Amazon today? Let's be serious: it's impossible to imagine retail without online stores. However, many direct marketers are feeling the competition and competitive pressure from large online retailers, who supply even remote areas with their sophisticated logistics.
• Logistics : Buying and delivering goods is a real problem for many direct marketers. Especially in small villages or rural areas, the infrastructure is simply not as developed as it should be and hardly any retailers have their own fleet of trucks.
• Competition from large chains: Retail markets and supermarkets have a huge range of products that many small retailers cannot keep up with. As customers like convenience (and are allowed to be), they often shop where they can find everything they need. Supermarkets are also often cheaper and offer prices that no direct marketer can match. Direct marketers must therefore cleverly differentiate themselves from the large chains with special offers or other ideas in order to appeal to customers.
• Bureaucracy: Increasingly strict regulations, laws at EU, federal and state level, some of which contradict each other, and regulations from associations and local authorities are a real challenge for retailers in Germany. One sector that is particularly affected by this is agriculture. One consequence was the farmers' protests, in which farmers expressed their displeasure at bureaucracy and rising taxes.
• Staff shortage: Qualified specialists are the most valuable resource of our time. Just like other sectors of the economy, the retail trade is also struggling with a shortage of skilled workers and competition for the best brains is fierce. Those who are rooted in a rural area usually have particular problems finding competent staff. Many farm stores and other retail businesses therefore rely on SCO checkouts for self-checkout. More on this in a moment. 

Direct marketers must therefore overcome various challenges. However, those who actively tackle the issues mentioned above and adapt their business accordingly have excellent prospects of economic success. Time to look at the opportunities for direct marketers.

What opportunities do direct marketers have in retail?

We don't want to bore you with the phrase that there is an opportunity in every crisis. Nevertheless, there is a grain of truth in it. Let's take the example of changing consumer behavior. Just because customers like to shop online or in the supermarket doesn 't mean you are at the mercy of the competition. On the contrary: there are numerous developments that show that direct marketing has a future.

Sustainability is becoming more important

In times of climate change, many people are rethinking their consumption habits. Convenience isn't everything, and anyone who wants to reduce their carbon footprint would rather go to the farm store next door than order vegetables from a delivery service. What's more, more and more consumers are discovering regional products for themselves. Apples or potatoes from local farmers not only taste really good, but are often also produced more sustainably. What's more, shoppers know exactly who they have received their goods from. Personal contact builds trust and a little chat at the counter is not to be sneezed at either.

New tools and technologies

"The internet? Is that nonsense still around?" Homer J. Simpson didn't believe that the Internet would catch on. You certainly do, and perhaps you already run your own online store. But digitalization offers you even more opportunities. One example is the SCO checkouts mentioned earlier. These self-checkout systems allow customers to scan and pay for their goods themselves. This means you don't need staff to operate the checkout and you have much more time to advise customers and/or perform other core tasks in your business. Direct marketers such as the Bavarian flower shop Chez Anna show how this works in practice. Chez Annathe Todtnauberg mountain store or the Breil farm store.

Incidentally, technology is also helpful if you are targeting customers via social media or using local SEO strategies to optimize your Google ranking for the region. With a little creativity , you can easily put the competition in your digital pocket and have a lot of fun at the same time.

Personal advice and services

You've probably already ordered the wrong size of trousers or had to return another item. This is stressful and costs time and money. Buying products locally makes it much easier and quicker to return them. What's more, there's no need for a truck to drive hundreds of kilometers to the nearest logistics center to deliver your goods. Almost more importantly, the personal advice provided by direct marketing means that incorrect purchases are much rarer and customer loyalty is correspondingly high.

Direct marketing: you are your own boss

These and other opportunities are the reasons why so many people become self-employed as direct marketers in the retail sector. Having your own store is something very special and the passion you put into your farm store or flower store will help you overcome any challenge. We at LocaFox are happy to support you and are here to help you with POS solutions for your individual requirements.

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