Big data improves retail operations
A struggling global economy combined with the expansive growth of online vendors has caused a great deal of consternation within the retail sector. In an interview with Yahoo Finance, Howard Davidowitz, chairman of the consulting firm Davidowitz & Associates, said that while sales across the industry have risen as a whole over the past few months, individual companies have struggled to turn a profit. With customers either reducing their expenses or flocking to online stores, retailers have been anxiously searching for ways to engage customers and increase store traffic. Hadoop big data applications could be the solution to this dilemma, as a number of retail chains have increased their profit margins by launching analytical programs.
One such corporation has been Canadian electronics chain The Source. The Globe and Mail reported that when faced with lagging sales numbers, company officials implemented data analytics software to gain more insight into the purchasing habits of their target customers. Assessment of their stores' sales information showed that a number of well-stocked products were failing to turn a profit. Executives also discerned that there were products they did not carry that would appeal to their clientele. For instance, data analytics applications showed that many industry consumers were buying upscale headphones far more expensive than the brands carried by The Source. After replacing their old stock with designer brands, the corporation saw sales of these items rise by more than 40 percent.
Considering the current competitive state of the retail market, both small and large businesses should adopt every measure available to better engage consumers and maximize their resources. Applications designed upon a Hadoop architecture can process massive datasets containing sales records and customer behavior information to provide enterprises with invaluable insight into the state of their marketplace. For businesses looking to optimize their market penetration, Hadoop big data tools can provide them with the information needed to engage customers and offer compelling product lines.