Challenges for the local economy

Technology has led a global economic revolution. Consumers are no longer restricted to their local high street when searching for their next purchase and businesses have a whole host of international opportunities when searching for a partner. However, many of these advances have come at the cost of the local economy.

While the local economy used to be a hub of activity and centre of community life, with thriving businesses across a range of products and services, the rise of the global economy has had a huge impact.

Local businesses now face what often feel like insurmountable challenges when it comes to not only growing their market share but retaining those customers they already had. Even when consumers have frequented local businesses loyally for some time, they’re becoming increasingly drawn away by the greater variety and convenience that the global marketplace can offer.

The challenges facing the local economy are numerous, including:

Competing with online choice

One of the key reasons consumers choose the global economy over their local stores is the huge range of choice they’re given. Single stores simply don’t have the capacity or expertise to compete. With everything anyone could need just a few clicks away, it’s easy to see why going online has become the go to option. While it’s impossible for a single local business to compete on such a scale, collaboration can provide a solution and support structure. By working with other local businesses, community shops and stores can create thriving networks, making the local economy a more attractive prospect for shoppers.

Making products accessible

Researching and ordering any number of products is made simple with modern technology but it’s an aspect that many local businesses forget about. There’s still a place for traditional selling methods, such as shopfronts or telesales, but it’s now expected that information is available to browse at a time that’s convenient for the shopper. For businesses operating in the local economy, it can be a challenge to allocate the necessary funds and compete at the same level as their national or international counterparts.

Gaining valuable online visibility

While we’re on the subject of technology, online visibility is a huge issue. With much larger budgets, businesses operating in the global economy are better placed to promote offers and services to a variety of customer segments, drawing them away from local economies.

Building an online presence has proven lucrative to businesses across all sectors, from clothing brands targeting consumers to manufacturers seeking to drum up B2B opportunities. The internet gives local businesses a chance to create new ways to engage with customers, but it comes with its pitfalls too.

Here at FlipNpik, we’ve created a way for local economies to re-establish connections and relationships with local shoppers. It’s the smart way to overcome local economy challenges and secure future prospects.

By creating a network of local economies covering both products and services, we help local businesses to raise their profile, increase activity, and better use the technology that’s at their disposal. It’s an ecosystem that benefits all FlipNpik participants — the customers, businesses and partners.