We are at the end of year, it is time to take stock, but also for next year’s forecasts. What can we expect in the near future from retail? Sifting through the various foreign sites we have selected ten trends that we expect will drive retail evolution. Here they are.
- Customised approach thanks to technology. The customer feels chosen and understood thanks to communications transmitted via apps and the possibility for retailers to interpret his desires and choices. But also…
- Time is crucial. On and offline time for a certain range of customers (20-50 years old, working women, families with children) is a crucial factor in choosing where to buy. Which means fast deliveries and devices for quick shopping in the store (fast check out, fast payment, shopping list apps, click and drive and click and collect, product availability or fast shipping in the case of missing products).
- Virtual and digital assistants. Especially in the high-end of the market, consumers will expect increasing support from hi-tech devices which guide their choice. RFIDs, beacons and touchscreens will abound in the store.
- Price polarisation. The middle class is disappearing and so is the average price. The trend is increasingly towards the two extremes, low-cost and luxury. The novelty is that the same person can draw from either of the two extremes indifferently: for example, low cost yoghurt from the discount store and traditional balsamic vinegar from Eataly.
- Cross-sector sales. Coffee in libraries, insurance in supermarkets, music in coffee shops, it has got to the point where everyone is selling everything. An advanced example? Monop’lab in Paris gare Montparnasse (in the photo) which changes its range every month depending on consumer desires, in partnership with the caterer Elior.
- Product customisation or mass customisation. Mass production no longer meets the needs of consumers who can almost never afford real tailor-made. Which means in the future limited edition products created thanks to customer input, or those for market niches (the spread of gluten free products is one example).
- “Over forties” revival. The population is ageing and the offer will adapt. Fewer teenagers, more and more older people who require products “for the home”, home delivery, easy-to-open packaging and large and legible text.
- Women. The largest market in the world is still largely ignored by brands and retailers. But things are changing and sooner or later even they will realise it. Already today, in 65% of cases women decide which car and in 81% which financial products to buy. The opportunities for those who are the first to “talk” to the other half of creation are immense. An example? The Nike women-only store in Newport Beach, California (in the photo below), with annexed fitness centre that also offers yoga classes
- Emotion and brand. To have connected and informed consumers perceive the pluses of a brand will be fundamental and therefore arousing emotions will be the lever to win their hearts and wallets. An example? WHSmiths, historic UK stationery chain, which sells cookery courses and hot air balloon rides.
- Emotional values and storytelling will also guide positioning, differentiation and the ability to tell the story of a brand. Provided it is genuine and linked to its deepest essence, not just entertainment but actually able to win the customer over to the brand.
Anna Muzio