2023 & beyond
to Everywhere, Embedded Commerce
While right in mid-2023, the collective health of our people and planet (definitively altered by the impact of COVID-19) continues to shape our daily lives and purchase decisions. Against a backdrop of retail volatility spanning the last three years, marked by challenges of e-commerce growth, workforce shortages, safety concerns, and supply chain disruptions, global retailers now confront new uncertainties around the vectors of inflation, social upheaval, climate disruption, and ever-evolving compliance requirements.
While the business world navigates this uncharted territory of technological disruption and digital transformation, retail has mutated from purely transactional to moving toward fresh avenues for sustenance, rejuvenation, and discovery. This shift creates a burgeoning opportunity for innovation in process, infrastructure, offerings, and experiences.
How can retailers ace disruption?
In the mutating world of e-commerce, retailers must keep a tab and get ahead of key trends by adopting futuristic business strategies and practices, for the future of the growth of retail lies in anticipating and disrupting disruption.
Everywhere, Embedded Commerce
Retail has exceeded the traditional boundaries of in-store or online marketplace experiences. It has transformed into the dynamic concept of ‘Everywhere, Embedded Commerce,’ seeping everywhere in our lives. With consumers transitioning between various channels, retailers must recognize the intertwined nature of their digital and physical media to cater to a shopper base that perceives them as a single entity.
Signs of Transformation: Navigating Shifts in Business Environment
a. A robust omnichannel strategy is crucial in retail as shoppers frequently switch channels during their purchasing journey.
b. Brick-and-mortar stores are no longer mere transaction sites; they have transformed into immersive experience centers that provide distinctive and captivating in-store experiences beyond product browsing and purchasing.
“I usually do the pick-up option for my groceries but end up buying more once I’m there. I love Dom’s blurs the lines between a restaurant, wine bar, grocery store & cafe”
– 30 years. Female, Future of Retail Survey
Aligning Planet and Profit Goals: Adapting Retail for the Eco-Conscious Consumer
As consumer consciousness for the environment rises, sustainability has shifted from a sought-after attribute to a necessity for retailers to remain competitive and ensure long-term growth. In time, sustainability may transition to a survival obligation, and retailers who ignore this reality may risk falling behind in an evolving market.
Indicators of transformation: navigating shifts in business environment
a. There is a significant surge in B2C demand for cost-effective and environmentally conscious products.
b. While hyper-convenience is the prevailing cultural norm, it’s crucial to recognize its adverse effects on both the environment and the workforce.
Increased delivery traffic could lead to a 25% increase in CO2 emissions in city centers
-TechTarget, 13 July 2021
The Marketing Shift: Media Networks and Brand Communities
The marketing world has shifted. Brands are moving away from traditional mainstream media socialization towards creating media networks, and communities centered around their brand identity. Technological advancements and proliferating digital platforms have catalyzed this movement, highlighting the growing influence of social media on consumers’ daily routines.
Indicators of transformation: navigating shifts in business environment
a. Building superfan communities has emerged as a powerful and effective strategy for brands to create loyal and engaged customer bases and to establish a solid channel for future growth and success.
b. In the age of social media, retailers are shifting their focus from traditional media networks to building and nurturing their online communities, creating powerful connections with customers, and driving brand advocacy.
Fostering Inclusion and Diversity with Representation
In today’s hyper-competitive retail landscape, customers seek brands that excel in delivering top-notch products and services while upholding their distinct ethnic and cultural identities. Representation, diversity, and inclusivity have become integral to establishing genuine customer connections.
a. Businesses increasingly realize the importance of representation and inclusivity, transforming these once-token ideas into powerful strategies.
b. Amidst the rising sway of cancel culture and viral negativity among consumers, retailers face steep costs for any hint of bias – making fair business practices more crucial than ever.
“I have a very curly hair. It feels great that there are so many brands out there now designing for my hair which wasn’t the case earlier.”
– 27 years. Female, Future of Retail Survey
Keeping Personalization Personal
With the growth of data, the impulse to hyper-personalize goods and marketing is understandable. Yet, retailers must weigh ethical concerns and ensure that personalization resonates with customers and drives business objectives.
Indicators of transformation: navigating shifts in business environment
a. Enhancing the customer experience through personalization is pivotal, yet treading the line between personalized and intrusive can make or break customer loyalty.
b. Rather than having passive access to highly customized products, consumers are inclined towards having the autonomy of co-creating their products and services. This not only fosters customer satisfaction but also promotes brand loyalty.
“I like the personalization that Netflix, Amazon, etc., brings by tracking my data. But if my data is misused, companies need to take accountability.”
– 27 years. Male, Future of Retail Survey
Stay Ahead in the Retail Game with Fractal
At Fractal, we are dedicated to staying on top of ever-evolving market trends and working alongside you to engineer innovative solutions, strategies, and practices that prepare you for the challenges and opportunities of the business environment today and beyond. To help guide your planning, we’ve created a strategic direction map to invest in your future and take a big stride toward business success in the transforming terrain of the retail industry.
Image References:
1. Dom’s kitchen and Market: Stock image
2. Mathis. (2020, July 16). ThredUp and Zero Waste Daniel’s New Line Is Made Entirely From Used Clothing. Marketing Vanguard. https://www.adweek.com/brand-marketing/thredup-and-zero-waste-daniels-new-line-is-made-entirely-from-used-clothing/
3. Jaekel. (n.d.). Nike’s new app supports die-hard fans with personalized content, rewards. Marketingdive. https://www.marketingdive.com/ex/mobilemarketer/cms/news/software-technology/23350.html
4. David. (2020, November 18). Third Culture: Time for redefining coffee and conversations. The New Indian Express. https://www.newindianexpress.com/cities/delhi/2020/nov/18/third-culture-time-for-redefining-coffee-and-conversations-2224810.html
5. Made with Unsplash