A new report from risk management firm Aon lists the things that retailers believe\u00a0pose the biggest risk to their businesses.<\/p>\n
According to\u00a0Aon’s Retail and Wholesale Report for 2015,\u00a0the retail and wholesale industry in South Africa has grown from around R106 billion in 2011 to a projected R122 billion by 2015, despite a tough economic climate.<\/span><\/p>\n With this growth comes higher risk, as companies face increased competition\u00a0and\u00a0stiff regulatory challenges, and find themselves pushing to constantly improve when innovation is the name of the game.<\/p>\n Over and above all of these things, though, South African retailers worry about one thing more than anything else: damage to their reputation and brand.<\/p>\n “Many well-known retailers both locally and abroad are finding their reputation affected by unexpected incidents such as data breaches, customer service failures, offensive language on apparel, extortion, inappropriate remarks or behaviour by company executives, and supply chain disruptions,” Aon\u00a0said.<\/p>\n “In an age of 24-hour news cycles and instant social media, a crisis could spread around the globe within hours or minutes.”<\/p>\n This has lead to the relevance of a brand or a product\u2019s reputation increasingly having a direct impact on a business’s bottom line, Aon said.<\/p>\n The second-biggest worry for retailers is business interruption – where a tough economy, strike action by employees, and a bevy of other factors cause disruptions in business.<\/p>\n Increasingly, technology-related factors are putting pressure on retailers – specifically in terms of competition, maintenance, and security.<\/p>\n According to the report, South Africa is showing an increasing number of Internet users who are steadily embracing a culture of online shopping\u00a0– this means that\u00a0there is an\u00a0increasing number of online retailers who\u00a0are entering the\u00a0space – challenging traditional retail.<\/p>\n As more retailers move online, this presents even greater risk, as the online space is fraught with risks relating to computer crime, hacking, viruses, and malicious codes – which costs the industry billions each year.<\/p>\n \u201cIf you don\u2019t invest in the ANC, your business is in danger\u201d: Zuma<\/a><\/strong><\/p>\n Rich white men in suits still dominate business in South Africa<\/a><\/strong><\/p>\n New bill threatens US-SA business relations<\/a><\/strong><\/p>\nTop 10 risks for retailers in South Africa:<\/h3>\n
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