The impact of innovation on the retail commerce

• Author: Balasescu, S.
• Position: Dept. of Economic Sciences and Business Administration, Transilvania University of Brasov
• Pages: 9-14

Bulletin of the Transilvania University of Braşov • Vol. 5 (54) •No. 1 - 2012

Series V: Economic Sciences

THE IMPACT OF INNOVATION ON

THE RETAIL COMMERCE

Simona BLŞESCU1

Abstract: This paper highlights the contribution of innovation process in

retail development. Lately, in this area has appeared many innovations

(related to products, processes or technology) which have brought many

benefits for the performance of trade activities. Many retailers have realized

the benefits of innovation and have gradually adopted them, offering to their

business the chance to grow. Romanian retail companies are trying to adjust

to the changes in the field, being aware that long-term, innovation is the key

to business success.

Key words: innovation, retail, merchandising.

1 Dept. of Economic Sciences and Business Administration, Transilvania University of Braşov.

1. Introduction

Retail has become a dynamic sector,

with a rapidly evolving and a diversity of

organization forms, especially because of

economic development and technological

progress seen in recent years. The rapid

development of retail was sustained by

innovation, which helped it to adapt

rapidly to market conditions, to continued

growth in consumer demands and

requirements and to traders need to

streamline business activities.

In Romania, the importance given to

both marketing and innovation is very

small, considering the European ranking

for Innovation - European Innovation

Scoreboard - 2010, where Romania is

placed in the fourth group - recovery

countries with innovation performance

well below the EU average.

The modern economy has led to new

demands from the retail, determining it to

develop and provide services to improve

the system of satisfying consumers’ needs.

To achieve these objectives, commerce

appeals to an innovation process. This

could be a new product, a change, a

technical improvement or streamlining for

applied solutions.

2. The importance of innovation in retail

trade

Innovation means both creating and

bringing into profitable use of new

technologies, new products, new services,

new marketing ideas, new systems and

new ways of operating [3]. According to

the Oslo model [2], the main types of

innovations are: product innovation,

innovation process, marketing innovation

and organizational innovation.

In the commerce area, all four categories

of innovations are important because,

combined, they lead to a positive image of

companies among consumers and

employees, help to increase sales, to

facilitate distribution and to create

products that are attractive to customers.

The sources of innovation could be the

emerging opportunities in the market