Prices are rising everywhere; that’s a reality we all know. While salaries are increasing in some places, prices generally grow more quickly. In Ireland, where the cost of living has notably surged, especially in urban areas like Dublin, this discrepancy between wage increases and price inflation is particularly stark. With real incomes declining, so too will the amount people and households spend on goods.
Irish consumers are increasingly looking for the best value, and their willingness to multi-stop shop should also increase. This shopping behaviour became evident during the lockdown when small businesses were forced to close their doors, while Amazon doubled its income compared to the previous year. The pandemic accelerated the shift towards online shopping, a trend that has firmly taken root in Ireland as well. With an increasing number of people becoming comfortable with online purchases, and omni-retailers like Amazon offering alternatives to multi-stop online shopping, middle-ground businesses may become squeezed.
This squeeze is more pronounced in Ireland due to several factors. Firstly, the density of small to medium enterprises (SMEs), which are integral to the Irish economy, makes them particularly vulnerable. These businesses often struggle to compete with the pricing power of multinational corporations. Additionally, Ireland’s robust digital infrastructure further facilitates the growth of online giants at the expense of local retailers.
Furthermore, as Brexit continues to affect trade dynamics, Irish businesses face additional challenges from both supply chain disruptions and increased costs. These disruptions further enhance the competitive edge of large multinational online retailers who can more easily absorb such shocks.
In response, there is a growing movement within Ireland to support local businesses. Initiatives such as the 'Champion Green' campaign encourage consumers to shop locally to sustain the community and economy. Moreover, there's an increasing push for Irish businesses to enhance their online presence and digital capabilities to compete more effectively in this new retail landscape.
In conclusion, while the rise of online shopping and the dominance of large corporations present significant challenges for local Irish businesses, including those in the picture framing industry, there is also a significant opportunity for growth and adaptation. By leveraging their unique strengths and the community's support, we can navigate these turbulent times.
Bespoke & Co. always seeks to adopt new technologies, diversify product offerings, and enhance customer engagement strategies to attract and retain clients.
