And so has shopper's expectations.
Retail isn't dead but it sure has changed, in significant ways.
Birth of e-commerce - From the dotcom era to shoppable instagram posts, it's now more convenient than ever to shop virtually.
Amazon, the giant - It could be looped into the rise of e-commerce but Amazon is really the giant elephant in the room. Changing how shoppers rank convenience and value online reviews. Ever been on the couch watching netflix only to pick up your phone and head to amazon when you forgot to pick up lightbulbs on the way home.
Malls: The dinosaurs of the glorious 80s and 90s - The memories of teenage youth with disposable incomes have now turned into suburban deserts as its estimated that more than half of mall based department stores could close by 2022.
Rise of Customer Experience - Shoppers are informed and demand a seamless shopping journey that identifies with the product and brand.
OMNICHANNEL - And now more than ever is branding important. With an abundance of choices more online and in-store, the competition is high to stand out. More than 68% of respondents from the State of Consumer Behavior report had searched for a better price online after finding a product at a physical store.
SMALL + MIGHTY - As the department stores fade into the retail landscape, space has become limited. Boutique size retail has been a rise as pop-up shops and City-Target have been built.
Brick and Mortar is here to stay
As the retail landscape literally and metaphorically changes, early predictions weighed heavily on the future of brick and mortar. And time has confirm that people will still need physical retailers in their everyday lives. While online sales have grown exponentially, it still does not compare to retail sales. According to research from Escalent, " consumer continue to have a strong desire and need to browse and shop stores rather than online".
The overall experience that being physically in the store appeals to men and women differently. The State of Consumer Behavior 2020 reported for men, the shopping experience (44%) is more important than the ability to see and touch products (23.4%). While women however feel differently; 45.7% prefer the physical presence of products and 34.6% preferring the experience.
Some better than others
While some industries will continue to thrive in-store, there are others that will naturally transition to the digital realm as industry disruptions force increased competition. For example consumer electronics, toys, book and media, and clothing have all seen a growth in online sales. While perishable items and DIY products will continue to thrive in-store.
Evolving for the future of Retail
Every industry has been impacted by the emergence of e-commerce and its impact on shopper's expectations. Here are some tips for engaging customers while working within retailer constraints.
Brand consistency - maintain consistent imagery and messaging along the customer's buying journey. From the website to the packaging, to the merchandising to checkout.
Experience - take advantage of every opportunity to engage the senses before the purchase. Allow people to test the product or experience the brand lifestyle.
Merchandising - create the optimal layout and design to enhance the selection process.
Simple + Compact - space is limited so keep the message simple and the structure small. Increasing your product merchandising yield and you cost on each product down.
Comments