Proximitying Market Size

Proximity Marketing Market Growth Projections and Opportunities

Proximity market dynamics are in consequence of many attributes that determine buyers’ and sellers’ interactions around closely physical locations. Consumers continue to desire the convenience of availability without the limitations of proximity; hence, the market feeds on this notion. The main factor that drives this market is the rapid rise of urbanization in the world, which leads to the increased need for solutions that put people in the center. Due to the number of people moving into cities, the locational accessibility of retail shops, services and amenities becomes very significant. This has especially created an impressive force of the nearby businesses offering close-by businesses such as convenience stores, local service providers, and quick-service restaurants.

Besides that, technological improvements offer the necessary conditions necessary for the functioning of the proximity market. With the advent of mobile apps and location-based services, consumers are now able to directly engage with the businesses that are in their close proximity. The mobile apps develop the functionality of information search, personalized promotion and transaction procedure, hence the consumer experience vector is enhanced. Another way technology helps with city logistics is the integration of GPS and RFID which improves the efficiency with which businesses with delivery systems in close proximity manage their inventory and supply chain.

Customer behaviors are the other important factor creating a dynamic of proximity-oriented market. The contemporary shopper is more and more oriented towards time and convenience and usually prefers those options that are quite close and spare him from unnecessary travelling distances and waiting times. This transition of consumer choices is the main engine that drives the expansion of the business which offers the instant satisfaction, for example, on-demand delivery, same-day deliveries & click-and- collect options. This has led to a shift towards proximity-based marketing strategies which aim at the real-time wants and preferences of the local customers and they are also the key element for locking and retaining the customers in this heavily competitive environment.

The competition results in the proximity market being shaped by the very same forces. Local businesses have not only the chance to succeed but also the threat of competition for the inhabitants situated nearby the businesses. The small centers of variety of economic activities require creative and efficient differentiation strategy, aggressive marketing efforts, superior products and services. Nevertheless, the fact that the fierce competition promotes the innovation within the sector is also important as firms compete to achieve this through unconventional offers, pricing models and customer dealing techniques.