The future of retail is as murky as a swamp, but with expert analysis, careful consideration, and technological advancements, there are ways to filter through the dark depths and find clarity. Understanding and predicting how the industry will shape and mold is an advantage that any business would deem priceless. Starting with the retail trends of 2023, there’s a high probability that the future of retail will focus on three primary factors: social, meta, and the experience of the consumer.
The Future of Retail: Social
There’s no way around it, the retail industry has forever been changed by e-commerce, social media, and digital technology. More than ever, there is so much power in the hands of consumers, literally. In the palm of their hand, shoppers can use their mobile smart devices to:
- Quickly look up prices to find the best deals
- Watch videos and reviews to learn more about the product
- Check with a social media influencer to get that person’s opinion
- Read reviews and experiences from other shopper’s points of view
Additionally, social media platforms such as Instagram and TikTok have quickly adapted in order to seamlessly merge with the realm of e-commerce.
With this in mind, retailers must be even more aware of their online presence and help shape it and curate it to represent their brand and values. They’ll also need to think of new ways to differentiate themselves in the world of social media in ways that will inspire consumers to regularly interact with their brand.
This same ideation needs to continue with the ways that the brand works with social media influencers. For example, the clothing retailer SHEIN sent bundles of clothing to influencers who then made haul videos on TikTok during the pandemic lockdown.
The more that retailers can get ahead of the curve with social media platforms and influencers, instead of playing catch up with the innovators, the better off they’ll be.
The Future of Retail: Metaverse & Web3
The metaverse is still an open frontier, but brands are already experimenting with the concept in varying degrees of creation and investment. In any case, even minimal excursions into the metaverse might prove invaluable down the line. With this in mind, there’s no denying the Metaverse and Web3 when it comes to the future of retail.
Web3 is being dubbed the future of the internet by sources such as the Harvard Business Review. Web3 is a new and improved version of the blockchain-based web that combines cryptocurrencies, NFTs, DAOs, and more. It’s also being touted as an evolutionary step that rivals the introduction of PCs and mobile smartphones.
It is not without its critics, however, and there are already plenty of issues being raised about the negative impact on the environment and the increased level of financial speculation combined with fraud when using Web3 projects.
The Web3 digital process is also supposed to help improve the robustness of digital security, privacy, centralization, and financial exclusion concerns, but the catch-22 is that the process is also creating new security concerns.
Meanwhile, NFT trademarks are still being explored as companies buy into the concept of a virtual metaverse where everything can once again be trademarked and copyrighted. It seems unreal that physical and tangible products are once again being hailed as virtual products that can be bought as consumer goods in a fake world.
The reason for this is largely in part due to the rise of video games and the successes of Fortnite and Roblox. As more and more users in the younger generations grow up with the idea of being able to create a virtual avatar to play various games and visit virtual worlds, naturally then, companies want to make money from these ventures.
Finally, with virtual headsets having been established in the world of gaming, the metaverse seems to be getting closer to full realization. For gamers, it sounds like a virtual paradise, but for the rest of the people who prefer to stick to the non-digitized reality, it might not make an impact at all. Ready or not, this is the future of retail.
The Future of Retail: Experiences
Now, retailers are looking for ways to engage their customers with experiences primarily in the physical, but also tin the digital, that will keep them engaged with the brand. Getting a customer through your store’s doors, or onto your website is incredibly paramount because it nearly guarantees a purchase. And that’s what counts.
Clothing companies have begun offering classes and activities related to their brand’s sport or function, while supermarkets have been experimenting with wine tasting sessions and cooking classes geared towards date nights. This has also been the case with brands like McDonald’s when they implemented children’s play areas in their restaurants.
Becoming an experiential business is almost synonymous with being a retailer, and this could become 100% true in the near future. Products can be desired and cherished more when attached to an experience and a memory. This has enough potency to become a brand-new product category that has evolved from the memorabilia consumers have been buying from destination locations and theme parks.
Experiences not only get customers into the door, they also build communities and create more direct connections with customers. Think art installations, show rooms, games, and other similar activities that are cohesive with the brand and its products and services.
Social media also helps bridge the gap between a brand’s physical and digital spaces, creating a phygital presence that will need to be accounted for. In these regards, the only way to ensure that a company stays relevant with the future of retail is by providing unique experiences that keep customers talking about it, and walking through its doors.
The Future of Retail: Conclusion
For more insight into the future of retail, consider exploring more from our highly-esteemed team members. Retail industry expert Ryan Mathews is a contributing RetailWire BrainTrust member and author of books that help readers gain a better understanding of how the retail industry evolves toward the future.
We will also see the continuing rise of ecosystem marketplaces such as Amazon, Aliexpress, Walmart, and others. These platform models have become the new super shopping malls of the digital era by providing a one-stop-shop for consumers in need of multiple items and products.
One thing’s for certain, the future of retail is going to be one heck of a ride and a fascinating world to navigate and experience at the same time.
