Retail Trends

Part
01
of one
Part
01

Retail Trends

Same-day delivery, omnichannel experiences, and visual search are some trends for retail in 2020.

Same-day Delivery

  • Customers have become more time-sensitive when making purchases.
  • According to an Alix Partners study, “consumers are becoming more impatient with delivery time - from about 6 days in 2012 to just 4 days in 2018.”
  • Consumers are looking for retailers who make same-day delivery, with 88% of them willing to pay more for same-day delivery.
  • Nike and Bed Bath & Beyond are some retailers offering same-day delivery.

Omnichannel Experiences

  • In 2020, the rise of omnichannel will continue, and retailers need to offer the best shopping experience to consumers, both online and offline. Retailers need to be “active and responsive to consumers’ needs with branded touchpoints at all points of the buying journey.”
  • The consumer shopping journey is non-linear. Brands, therefore, need to have their presence felt, both digitally and physically.
  • Providing omnichannel experiences to clients ensures that customers do not fall out in their purchase journey for lack of their preferred buying channel, which would directly impact a firm's revenue.
  • There is a “90% higher customer retention rate for brands using three or more channels in their campaigns than those using a single-channel.”
  • Some top omnichannel retailers include DSW, UGG, and Lids, Inc.

Product Customization

  • Having a unique product that no one else has is a classic symbol of luxury.
  • Brick-and-mortar and eCommerce stores are "offering options where customers can customize their purchases, from embroidery and monograms to fully unique color schemes."
  • As people continue chasing trends, customization has become more attractive as customers strive to stand out in an ocean of duplicates.
  • Customization creates a rapport between the retailer and the consumer by involving customers in the product creation process, which leads to enhanced user experience. Better user experience leads to more conversions, which increases a retailer’s sales.
  • Levi’s and NIKEid, now NIKE BY YOU, are some retailers offering customized products to their customers.

Social Shopping

  • Ecommerce and social media are becoming inseparable.
  • Consumers are relying on social media to make their purchase decisions, mostly influenced by social media influencers.
  • Providing an option where customers can make purchases directly from their social media accounts is a trend that is being experienced in 2020. Shoppable Instagram stories and posts, for example, took off in 2018 and 41% of eCommerce brands are already using this feature.
  • According to Hootsuite, “60% of Instagram visitors use the platform to find and buy products.” Retailers can take advantage of social shopping by partnering with social media influencers and creating shoppable social profiles on platforms such as Pinterest and Instagram to increase their revenues.
  • Brands such as Artifacia are using Instashopping to sell their products.

More Paying Options

  • Customers are constantly looking for retailers offering their preferred payment options.
  • Digital wallet technology is a must-have option for firms in their sales operations. According to Merchant Machine, a UK payment researcher, 17% of consumers in the US use a digital wallet. Statista, on the other hand, predicts that there will be an 8% annual growth in digital payment transactions between 2019 and 2023.
  • Brands are benefiting from adopting digital wallet technology by “integrating loyalty programs, which is another way of staying connected to their customers.”
  • Adidas, for example, accepts Visa, American Express, MasterCard, Maestro, Apple Pay, and PayPal.

Anticipatory Support

  • As brands and retailers take advantage of Artificial Intelligence (AI) and internet-enabled technologies to better track and respond to consumer behaviors and purchasing habits, services will shift to proactive from reactive.
  • Consumers are seeking companies that are offering predictive care and just-in-time assistance. According to research by Wunderman, “79% of consumers feel that brands must actively demonstrate that they understand and care about them.”
  • Companies like PepsiCo, Freebird, and Amazon Alexa are some companies offering anticipatory support and ensuring that they do not lose their clients to competitors.
Sources
Sources