“IN ORDER TO BE IRREPLACEABLE, ONE MUST ALWAYS BE DIFFERENT.” – COCO CHANEL
Today’s path to purchase is a composite of gateways, both on and offline, enticing shoppers to spend. Brands have already witnessed the major influence that social media has had on shopping trends. According to Sprout Social, 74% of shoppers now make buying decisions based on social media, and it’s unlikely that this number will decrease any time soon.
ONLINE SHOPPING HABITS
Social media represents high stakes for the luxury fashion market. Although once shunned by the elitist brands as ‘mass market,’ social media has now become the marketing tool of choice. Luxury brands are stepping outside of their comfort zone to forge authentic connections with their consumer base, particularly with younger millennials and the Generation Z demographic.
Chanel and Louis Vuitton ranked highest on WWD’s (Women’s Wear Daily) Top Fashion Brands on Social, eloquently strategic in their innovation toward embracing social media while staying true to their brand. In Chanel’s case, the brand has a combined reach of 63.9 million followers across Facebook, Instagram and Twitter, and as if to reiterate the prestige of their legacy, they only follow their brand, Chanel Beauty.
According to Deloitte, millennials and Generation Z are expected to represent more than 40% of the overall luxury goods market by 2025. One constant that drives in-store purchases is a high-value, stylised and customised shopping experience. Another is the consumption of video: 80% of millennials watch online video during the consideration phase of the buyer’s journey. Luxury brands must calculate how they leverage their content to introduce their offerings to new audiences. Chanel’s approach involves a compelling landing page with a video timeline that depict its origin story through a series of short films.
WHAT’S DRIVING THE CLICK AND COLLECT MOVEMENT?
Consumers are excitedly embracing their 24/7 shopping superpower and it continues to become even more convenient and speedy! Click and Collect is just another way to capture those seeking to receive their purchases immediately. It’s a growing market and retailers are embracing how it’s done.
Availability of Online Shopping
“Landlords are embracing Click and Collect as technology is changing the shopping environment. We are supportive of initiatives that will enhance the customer experience and make our retailers successful long-term, but we must always consider the needs and restrictions of all of our tenants when considering possible pick-up locations.” said Perry Chudnoff, Invesco.
The popularity will continue blending the in-store and digital experience. More recently, we have seen digital assistants such as Google Home, Amazon’s Alexa and Apple’s Home Pod devices becoming the go-to for grocery and household purchases. As Google calls it, ‘Shopping Actions’ allows you to buy what you want when you want, hands-free.
It’s safe to assume that the retail revolution is underway. Fuelled by innovation and inspiration from some unlikely places, brands are stepping up to capture consumers’ attention every which way.
With all the activity, are we seeing an increase in retail technologies? Are retailers adapting to the demand? We know one thing: immediate gratification is here to stay.
Here is a roundup of four retail trends that we believe are going to continue to change the retail game:
THE DRONE HAS LANDED
As consumers embracement of online shopping increases, delivery will be next in their line of vision. And the faster, the better. If the sizable investments made by Amazon Prime Air, Google’s Project Wing and even Boeing are any indication, the drone will become the holy grail for 3PL logistics. Drones are likely to become the shipping option of choice in the foreseeable future.
CASH IS DEAD
Conversations about blockchain technology are all the rage as folks begin to better understand how it can enhance the digital shopping experience and streamline payment structures. From locating stolen goods to combating counterfeits and issuing targeted messaging for recalls, there is a considerable benefit to incorporating blockchain technology according to Deloitte. As automation becomes the norm, experts suggest that blockchains will improve the efficiency of business operations for retailing from 40% to 60%.
WORK. EAT. PLAY. REPEAT.
The rising popularity of coworking spaces that has blurred the lines between work and home for the ‘9-to-5’ set is now bleeding over to members of the gig economy. In cities worldwide, restaurants are the latest to tap into the shared office space. For a nominal monthly fee, membership grants small businesses and entrepreneurs access to quiet and often underutilized daytime space at local restaurants and cafes. From Amsterdam to San Francisco, this is one trend that is to spread like wildfire.
FASHION FOR ALL PEOPLE
Long overlooked by retailers, plus-size, tall and petite fashion segments are going mainstream. Companies such as global sportswear brand Nike, has committed to growing their women’s offering into an $11 billion business by 2020. Retailers are finally recognising that consumers represent all shapes and sizes across genders.
