Future-Proof Your Retail Strategy
Hey Retailers, if you missed Anastasia Lloyd-Wallis' session at the Retail Therapy Conference, we've got you covered. Anastasia, the COO and Head of Consumer Insights at Retail Doctor Group, dropped some serious knowledge on where the retail industry is heading. Here are the highlights tailored just for you!
Virtual Try-Ons and Drone Deliveries: The New Normal
Imagine planning a shopping spree with friends, but instead of hitting the mall, you’re trying on outfits virtually at a local store event. Or needing party supplies and having them delivered by drone in minutes. This futuristic vision isn’t far off!
Retail Trends to Watch
1. In-Store vs. E-Commerce: By 2030, in-store retail in Australia is projected to hit A$490.09 billion, while e-commerce will reach $113.15 billion. That’s 20% of total retail sales going digital.
2. Gen Z and Millennials Rule: Currently, they account for 36% of the retail spend. By 2030, this will jump to 48%. These tech-savvy shoppers are your future.
3. Sustainability Shift: Packaging accounts for 47% of plastic waste. But by 2030, most products will be sustainable.
4. Social Commerce Boom: Expect it to grow by a CAGR of 9.8%, hitting A$4.4 billion by 2030.
Tech and Personalisation: The Future is Here
Interactive Storefronts: Future shop windows will adapt content based on who’s standing in front of them.
Drone Deliveries: Could boost retail sales by $2.2 billion and cut delivery costs by $800 million per year.
AI and Resale Market: AI spending in Australia will hit $3.6 billion by 2025, while the global resale market grows faster than traditional retail.
The Rise of Hyper-Personalisation
Patrick, our future consumer, enjoys a shopping experience tailored just for him. Here’s what you can do for Patrick:
Conversational Commerce: Chatting with a retailer’s avatar for personalised advice.
Virtual Try-Ons: Using a 3D body scan to try on shoes holographically.
Crypto Wallets and Metaverse Shopping: Earning crypto rewards and shopping in virtual malls.
Experience Matters
Consumers want shopping to be an event!
On-Demand Economy: Time is the new currency.
Experiential Retail: Make your stores worth the trip. Digital interactions influence 54% of consumers’ purchases.
Humanising Brands
Shoppers buy with their hearts, not just their wallets. Emotional connections make your brand stand out:
Emotional Content: Create offers that resonate emotionally at every touchpoint.
Customer Loyalty: Engage with consumers 24/7 across multiple platforms. Tailor your approach to different emotional drivers of loyalty.
Privacy is Paramount
Consumers demand more from brands:
Data Protection: 78% of consumers expect brands to protect their data better.
Personalised Privacy: Future shoppers will trade data for personalised experiences and time savings.
Anastasia and her team at Retail Doctor Group are always keeping up with these trends. Understanding and adapting to these trends will help you stay ahead in the ever-evolving retail landscape.
For more inspiring insights from industry leaders, drop by the Retail Therapy Seminar at the upcoming Reed Gift Fairs Melbourne, taking place at the MCEC from 3 – 6 August 2024.
