Retail in 2022: The ultimate guide for your business
Stepping into 2022, there was no denying that the underlying feeling towards retail was still uncertainty.
Many of the brands I chatted to didn’t know what to focus on, where to place their budgets or how to navigate the dizzying speed with which retail has changed over the last couple of years. Thanks to headlines of Covid/Brexit/the digital boom!
Don’t worry though, it’s not as scary as it may seem. Whilst the mainstream media will have you believing that any evolution is akin to a horror story, there’s actually a massive amount of opportunity within both physical and digital this year. And an opportunity to bring them both together for even better results!
How digital retail is changing
1. Tech literacy is on the up
In 2018 only 10% of the adult UK population were considered “non-internet users” according to IBM. Ultimately, everyone is more tech literate than ever. And, of course, this has led to an inevitable surge in all things digital.
For one thing, customers now have higher expectations of your online presence.
As standard, most of us now expect the following:
Quick connections and websites that move with serious speed
Online spaces that work exactly how we expect them to and that have a fabulous user experience from start to finish
Useful content at our fingertips
What happens if you don’t have these things? Simple. You lose customers. These aspects of your digital retail presence are the basics that you need to get ironed out ASAP.
2. Understanding attention spans is crucial
With the rise of social media, attention spans are also dropping. Apparently they are now shorter than that of a goldfish!
As such, the delivery speed of products bought digitally is really important. People are less patient and want their parcels quicker than you can say “Amazon Prime”! However, consumers are also more conscious and want to be able to shop whilst simultaneously caring for the planet.
With 57% of shoppers happy to change their habits to reduce environmental impact, you need to weigh up what’s more important to your customer base: Quick package delivery or sustainability?
Shortening attention spans also point to the desire for simplicity. Websites need to be quick to understand; they need to immediately highlight how you’re solving your customer’s problems. Consider what your ideal customer is Googling to find your product and then convey how you are their saviour in your website!
3. It’s time to harness progress
Lots is changing in the world of tech. As a business, it can feel dizzying to jump on board!
The metaverse is one huge talking point. This buzz suggests that it will become a potentially crucial part of strategy for business owners moving forward, but for now this is still to be fully defined.
NFTs (Non-fungible tokens) are also being used as marketing for physical products or as a way to boost engagement. Pretty Little Thing is a great example of this!
NFTs are predicted to constitute 10% of the luxury goods market by 2030, with a €50 billion revenue opportunity, according to investment banking firm Morgan Stanley.
Whilst these opportunities may feel overwhelming, it’s important to keep an eye on them and jump on board when and if the time is right! Luxury brands are typically late to digital but you don’t want to be so are jumping onboard in a bid to connect with younger consumers.
If you have the time, money and capacity to dabble in NFTs or something similar, give it a go! But ensure you have a strategy: What opportunities will give you the best ROI? Do you have the capacity to add this to your strategy over something else? Is this aligned to your target customer?
How physical retail is changing
Physical retail has gone through an undeniable shift.
A lot of brands and retailers have shut down, but these were mainly retailers that were already struggling. They had not innovated in a long time and were not offering a unique customer experience.
If the store isn’t fresh, exciting and offering a different experience, customers know they can easily buy the products online. Thus, stale retailers suffer. Not surprising, is it?
These stores closing has highlighted the fact that retailers and brands need to be thinking of a more holistic approach when considering their offering. The role of physical retail is really about the interaction with the product, the experiences and the customer service.
1. You need to know your stuff
Physical retail and customer service is getting more important than ever. The level of research shoppers do before they visit a store is increasing, and often that's because when customers go into stores, they want help from actual people.
And if customers are going to visit a physical store, they're understandably keen to get something they can't find online. That’s why, in 2022, brands need to be investing in their training, team and staff, to give customers something different to the digital! Whether this is full brand experiences to your brand being stocked in multi-brand retailers. You can’t expect your products to simply fly off the shelves - digital shelves as well as physical.
2. It’s not time to jump ship
A lot of brands have shied away from physical retail in the past 2 years, as the tabloids and mainstream media have highlighted the risks and downfall of established highstreet stores, which has created a fearful atmosphere.
Spoiler alert though: Physical retail isn’t going anywhere!
What we’re actually seeing is a ‘retail reassortment’; shops are evolving, adapting and even changing ownership.
The investment of shops like Flannels shows that there is a growing opportunity within physical retail though: They are launching many new stores, as well as a beauty category that will help Gen Z outside of London to connect with the brand. Plus, NEXT is expanding into beauty shopping, Harrods is opening standalone beauty departments and John Lewis are redeveloping stores (yes, they are closing some but making the ones they have better than ever!)
Here’s what to expect to see more of:
High street revival and local shopping
Destination malls
Indie pop-up shops and marketplaces
Experiential department stores
Consider not whether you need to jump ship, but how you can harness these new and exciting opportunities within physical retail.
The future is omni-channel
Digital retail is changing. Physical retail is changing. But if you want to have the most impact as a brand, it’s time to bring these two channels together more than ever.
Did you know that customers commonly visit nine research points before making a purchase? They’re Googling in shops before buying. They’re using QR codes to get info at the touch of a button. They’re colour swatching in-store before buying online.
To truly exceed customers' expectations, brands should create a hybrid of digital and human experiences.
The crux of this is all about serving customers where they want to be served, and when; whether that's digitally or physically. For example, perhaps they want to purchase online, but they also want some kind of human help. There can be tiers to this customer experience, based on how valuable talking face-to-face would be: A chatbot could be offered, then a direct message with a sales assistant, a phone number to talk to someone and, finally, the all-important in-store presence.
I think the biggest frustration for customers is when this technology is used, but they still can’t find the answer they’re looking for. This is when it's important to have a real life person who can respond and help them as well.
By creating an omni-channel experience, you also have a brilliant chance to personalise the customer journey further. Truly understand the different types of customers you have, how you’re solving a problem and, as such, how you can help them to experience your brand in a way that serves them super effectively.
Retail in 2022: An overview of what’s important
Connection and understanding: You need to know your customers so that you can build an exceptional experience for them across physical and digital channels
Community: Think beyond the purchase and consider how you can build a community for your customers using exciting new technologies and immersive experiences
Value: It’s no longer all about price, but instead about how you can stand out among the crowd through the value you provide online and off
Focused strategy: The world is moving quickly, if this means doing less but doing better, that’s the way to go. Give yourself the headspace to develop your brand and understand what's changing
You’re a changemaker, aren’t you?
I want to support you in your mission to make waves in retail!
If you are looking for support trading with large retailers, or maybe you’re struggling to figure out how you can stand out? Do you want market insights tailored to your business? Or want to commercialise some of the ideas shared in this post? I’m all about creating action, focus and new ideas! Get in touch and we can chat about how I can help you.
If you missed my recent trend presentation webinar on Retail and Consumer Trend Forecast 2022, watch the replay: