In Part 1 of this three-part series, Brian Walker, CEO and Founder of Retail Doctor Group (RDG), explores the first three future retail trends: the rise of the on-demand economy, and the relationship between humans and machines. of revolutionary digital experience advancements, as they move from omnichannel to ubiquitous). How are traditional brands adapting to trends? Steps taken to keep your business ahead of the curve.
In the second part of the series, he looks at the following five future retail trends and how they will affect the retail industry in Australia and beyond.
Immersive experiences and transactional shopping
According to RDG Insights 2022, 66% of millennials want social and digital experiences in retail. The future of retail will continue to move towards leveraging technology to create immersive and personalized shopping experiences.
Retailers will leverage new technologies such as virtual reality, augmented reality, AI and the Metaverse to create interactive and engaging shopping experiences that go beyond traditional physical stores and e-commerce platforms.
More retailers will use virtual reality to create virtual showrooms where customers can explore and try on products, and augmented reality to provide customers with real-time product information and recommendations. . In addition, retailers will use his AI-powered chatbots and voice assistants to provide personalized customer service and recommend products based on customer preferences.
Retailers will also focus on creating interactive in-store experiences such as interactive displays and touch screens to engage customers and provide a more dynamic shopping experience. This helps retailers retain customers and increase brand loyalty.
Case Study – H&M | Smart mirror and enhanced checkout technology
To ensure that customers expect a smooth, creative, and fun retail experience while also catering to their individual unique styles, H&M is launching several new in-store shopping solutions in the US that leverage smart mirrors and new technology. Trial operation has started. Payment system, personalized style.
RDG Differentiation Tips – Your retail offer should focus on providing an immersive experience rather than a transactional experience. You can do this by understanding how consumers want to spend their time with your brand. The understanding and data learned can be used to develop strategies for store design, digital experiences, and find new and innovative ways to interact with each other.
Agile and distributed supply chain
An agile supply chain is characterized by the ability to respond quickly to changes in demand and supply, enabling retailers to quickly adapt to new market trends and customer needs. This includes using technologies such as real-time tracking, predictive analytics and automation to improve efficiency and speed.
The decentralized supply chain model refers to the decentralization of supply chain operations, enabling retailers to quickly respond to local market conditions and customer needs. This includes:
- Use smaller, more flexible warehouses and distribution centers.
- Leverage the capabilities of third-party logistics providers and carriers to increase flexibility, shorten lead times, and improve responsiveness to your customers.
Drone delivery could add $2.2 billion to Australian retail sales by 2030 and reduce delivery costs for businesses by up to $800 million annually. Additionally, retailers will focus on sustainability and circular economy concepts, including minimizing waste, maximizing resource efficiency, using renewable energy sources, and more.
Case Study – Kentucky Fried Chicken Drone Delivery
A great example of innovation driven by consumer needs and behavior, KFC Australia has partnered with drone service providers to use technology to create new delivery methods for greater convenience and positive experiences. I changed the shipping method to
Targeting customers who want the convenience and functionality of this service truly represents the future of shipping.
RDG Differentiation Tips – To help brands keep their supply chains agile and adapt to changing demand and market conditions, they must implement real-time monitoring of data and analytics. This provides real-time visibility into inventory and logistics, enabling quick and efficient decision making as well as the ability to respond accurately to changing demand.
Increased brand offers
In the future, the retail industry is expected to increase its use of ecosystem business models where vast interconnected communities of consumers, retailers and partners work together to create a seamless and convenient shopping experience for customers. Companies that effectively manage these ecosystem models report benefits in innovation and operational efficiency within their organizations and in the marketplace.
Retailers will adopt these models to form a brand ecosystem that is a one-stop solution for their customers, blurring the lines between different channels in retail. This will enable retailers to offer more personalized and efficient service and better meet customer demands. In addition, retailers will also focus on presenting products in interactive and engaging ways to drive sales and create customer connections, further promoting the ecosystem model.
The aim is to provide customers with a comprehensive and integrated shopping experience where various channels and services are seamlessly connected and easily accessible.
Case Study – Gucci | Pofect Pet Collection
As more consumers treat their furry babies as children, Gucci has expanded its product range to launch a luxurious pet collection for fashion-conscious furry friends. The collection includes everything from monogrammed coats to signature Gucci patterned sweaters and his t-shirts to complete your pet’s wardrobe.
RDG Differentiation Tips – Brands should use social media and other digital tools to foster communication, build a sense of belonging, and create a sense of community and engagement among their customers. Updating the retail ecosystem helps brands identify areas for improvement and stay ahead of changing customer preferences and market trends.
customer loyalty loop
In today’s retail industry, consumers expect seamless and convenient shopping experiences across multiple platforms and channels. They want to engage with retailers through various channels such as in-store, website, social media, marketplace, metaverse, and all of that.
The ultimate goal of any retailer is to understand what’s going on in the minds of their consumers, to capture their hearts and minds and transform them from shoppers to loyal customers. To achieve this goal, retailers must understand and empathize with their customers and see things from their perspective.
RDG Differentiation Tips – Instead of focusing solely on the customer journey, retailers should adopt a holistic approach known as the “customer loyalty loop”.
This approach goes beyond the initial purchase and looks at how to create loyal and emotionally connected customers who influence others. For this reason, retailers must understand the rational and emotional needs of their customers and create loyalty programs and ongoing engagement that meet these needs.
Consumers now want retailers to deeply understand their needs (and emotions) and how they can be fulfilled through loyalty programs and ongoing engagement. is not enough to maintain loyalty.
The future of retail will be successful for retailers who can create strong emotional connections with their customers and deliver a comprehensive, integrated shopping experience that is seamlessly connected and easily accessible across channels and services. will be
By understanding your customer’s personality, you can determine how they want to engage with you at every point in their journey and what emotions drive their experience. RDG Limbic Insights™ Consumer Personality Profiling maps the customer loyalty loop and helps strengthen customer loyalty and repeat her business.
Hyper-customization/personalization
Using data and technology to create personalized recommendations, targeted promotions and customized product offerings, it will be essential to tailor the retail shopping experience to each individual customer. Become.
Retailers are also using virtual, augmented reality, NFTs and the Metaverse to create virtual showrooms for a more immersive and personalized shopping experience. With 3D printing and on-demand manufacturing, customers can also customize their purchases and receive them quickly.
Personalization is also used to create a more convenient shopping experience through chatbots and virtual assistants. Retailers use data analytics to track customer behavior and create personalized marketing her campaigns and offers.
Hyper-personalization requires extensive planning and data mining, but by removing roadblocks (such as irrelevant products) and allowing retailers to direct customers to the products that offer the most value and satisfaction. , streamline the customer journey.
Case Study – Adidas and Snapchat | Bitmoji Exclusive Fashion Drops
With more customers expecting to engage with brands in the Metaverse and more features to hyper-customize and personalize their digital avatars, adidas partnered with Snapchat to launch the Snapchat Bitmoji fashion drop. As a result, users will be able to dress their avatars in branded virtual merchandise.
RDG Differentiation Tips – Personalized experiences help reduce customer acquisition costs and increase customer lifetime value. Additionally, hyper-personalized experiences create a deeper emotional connection, leading to increased brand loyalty and customer satisfaction. Retailers need to determine who their customers are and what their key emotional drivers are so they can create personalized experiences.
What else do I need to consider?
In Part 3 of this series, we look at the next set of future retail trends and what retailers should do next to stay ahead of the curve.
This article is the second in a three-part series written by Retail Doctor Group CEO and Founder Brian Walker and is republished with permission.
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