Page 38 - RLI December 2019 - January 2020

RLI RETAIL INSIGHT

How retailers can punch

above their weight

Pedro Carvalho, Head of Retail at digital receipts provider
Flux takes a look at a way retailers can aim above their
weight in the competitive landscape of today’s retail market.

he world of retail is a competitive one. The demands why REgULATION?
of today’s ‘always on’, tech-driven consumer Why? Because it is the perfect way of reassuring customers
evolve continually, while the unstoppable rise of and partners alike. For new retailers in particular, it’s an
Te-commerce looks like it’s only going to accelerate. essential part of establishing yourself within the marketplace
For ambitious and forward-thinking retailers, this ever- - be that online or on the high street. Taking a rigorous
changing dynamic brings with it plentiful opportunity to approach to regulation shows that you’re capable and that
diversify product and service offerings, experiment with you can be trusted. It’s independent and immoveable.
innovative new technologies and explore omni-channel sales For retailers, this can include everything from how you hold
and marketing techniques. But nonetheless, keeping pace and handle customer data under the Data Protection Act,
with the market has never been such a challenge. right through to clear online trading policies and a watertight
set of terms and conditions when it comes to refunds,
STANd OUT IN A cROwd
So how do retailers ensure they stand out in such a returns or working with suppliers.
crowded marketplace? And, in particular, how do smaller An understanding of regulation and accreditation legitimises ambi-
players punch above their weight in order to get noticed in tion. Regulation shows clearly your ability to not only make sales,
but to be able to work genuinely and compliantly within an existing
the first place?
There are lots of strategies to consider, of course, and no industry, securely and at scale. In short, it shows you mean business.
one-size-fits-all approach. However there is one area which BUILdINg TRUST
is often forgotten about when it comes to growth strategy, When it comes to working with other partners, regulation
which I am going to discuss here - and that is regulation. can also help potential partners understand that you can be
For some, this might come as a surprise. For many businesses, trusted to uphold your side of the bargain. As a fintech, we at
whatever their size or sector, regulation can be seen as an Flux are seeing an increasing level of cross-sector collaboration
irritating but inevitable hurdle. While a necessary legal measure between businesses that haven’t worked with the financial
to protect the relationships between both retailers and their sector before, as a result of open banking. For example, a chain
consumers, and retailers and their partners, regulation is - like of coffee shops might be hesitant about working with a fintech
it or not - unglamorous. It’s an administrative responsibility that partner, but a banking industry accreditation helps reassure
can take time to be done properly, and - in the view of some them of your expertise in a sector they’re not familiar with.
- detracts from the business of selling. To give an example based on our own experience, as a
Though you may understand the benefits and necessity of fintech start-up seeking to partner with retailers, regulation
regulation, in an ideal world you would never have to think has helped us at Flux convey that while our brand might be
about it. What I’m going to suggest, however, that if you want relatively new, we are completely committed to establishing
to grow, it is one of the most useful tools for retailers. partnerships with credibility and longevity.
Regulation has also been essential because, for us, our
product was entirely new. The industry is complex, but having
accreditation from regulators at such an early stage allowed us to
continue developing our core products with a solid foundation.
For Flux this includes being built with bank-level security, holding
Cyber Essentials Plus status as well as being regulated by the
FCA and Account Information Services Provider. We’re now
also working towards our ISO accreditation, and we’re keen to
put our product to the test as many times as possible in order
to help prove to our potential partners that it’s as robust as we
know it is. If this means starting out a new partnership with a
retailer by running a small scale trial, that is fine by us.
Of course, we’re not a retailer ourselves. But the same principles
apply in reverse. For retailers looking to scale, to demonstrate
credibility and to integrate with partners to deliver innovation to
their customers, regulation is absolutely fundamental. Ask yourself
what accreditation you would seek in a potential partner. Now
ask yourself what they would look for from you.
Seeking the right strategic partnerships should be key to
helping your business stand out in a competitive marketplace. But
first, set the foundations for a long-lasting working relationship by
approaching your regulation with enthusiasm - not reluctance.
It might seem like an arduous admin task in the short term, but
the long-term benefits of building thriving, reliable partnerships
will be more than worth your while.

38 RETAIL & LEISURE INTERNATIONAL DECEMBER 2019 / JANUARY 2020