Toys R Us, the place with our childhood memory, is dead. Apart from the debt crisis and Amazon as the primary cause, its lack of willingness and ability to adapt also give rise to its demise. What are the lessons that we can learn from the failure of the toy store giant?
1- E-commerce is a challenge
Toys R Us has long struggled to compete with online rivals like Amazon. With discounted prices, fast and sometimes free delivery, online retailers have become customers’ favorites, crushing the businesses with physical stores. Though traditional retailers have own advantages, this is the century for e-commerce.
2 -Too hard to change
Yes, making big changes is never easy. Like any other retailer, committing a huge amount of capital to build a fully dimensional business website is hard, not to mention the low-margin or no-margin investments in the establishment phase. The early success is also a stumbling stone for transition.
3- Too slow to change
The difficulty, however, should not be an excuse. Until recently, Toys R Us’s willingness and perceived need to invest and meet consumer expectations has been limited. Underestimating the game-changing power of e-commerce, the company focused on the war with WalMart by lowering operating costs. The result of failing to build a major online presence to keep up with rapid change? It failed.
4- Stay on trend
Even company like Toys R Us was bankrupt due to the failure of adaption. Re-orienting business quickly to stay with retail trends, therefore, is the key to success for any business. In the digital age, building a website is very important. Shopping via digital devices anytime anywhere is the shopping experience that your customers are looking for.
Yes, developing a digital presence it is a tough decision for either big company or small business. However, for the survival of your business, you don’t have an option. The sooner you react, the better your business will be.