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previous:The emergence of direct-to-consumer (DTC) brands may also change the retail environment because these businesses frequently have more control over their inventory management & supply chains. DTC companies are able to provide distinctive products that are less vulnerable to general shortages and react to customer demand more quickly. Given the heightened competition from these nimble newcomers, traditional retailers will need to stand out from the competition and innovate to maintain their market share. The retail industry is undergoing significant change as a result of the difficulties caused by limited product availability.NEXT:The dynamics of consumer decision-making can be further complicated by the psychological effects of scarcity, which can produce a sense of urgency that motivates impulsive purchasing behavior. E-commerce sites and retailers are dealing with the effects of limited product availability in a number of ways. Reduced foot traffic and sales can result for physical stores when they are unable to stock popular items. Consumers who come to physical stores hoping to find particular items might not find them, which could cost businesses money & harm their reputation. Today's retailers must balance controlling consumer expectations with navigating supply chain interruptions, which are frequently out of their control.
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