1975 – 1980: Recession and the rise of marketing
1980s – 1990s: Reaping the rewards
Early 1990s: Back into brief recession
Mid 1990s – 2008: The halcyon years
2008 – 2013: Recession and slow recovery
2013 – 2015: Fighting back
2015 and beyond: Star-gazing into the future of retailing
Retail experts now agree that the industry is changing so rapidly that we can only look one or two years ahead. We have seen digital technology enable newcomers to overhaul conventional business models – for example, Uber and Air BnB have changed the way people book taxis and accommodation using apps, online booking and peer-to-peer networks. But what’s next? Below are just some of the things retailers can look out for in the near future:
It’s about people, not numbers
The sector is more sophisticated than ever and retailers are investing significant resources into understanding how people think, behave and shop. The days of selling to the masses are long gone and instead firms are developing personal services using big or smart data gathered from online behaviour. This allows them to entice customers with timely communications, promotions and personalised pricing.
In a fiercely competitive market place, customers will soon be given genuine rewards for frequent visits and higher spending, in a way that moves beyond the current reward points model.
A lifestyle, not just a destination
Time is of course, a precious commodity for most consumers so retailers will look at ways of making their services more convenient. At the same time, the lines between retail, hospitality, entertainment, education and even gaming will blur so they become part of our blended leisure time. Stores, which may have suffered due to online shopping, could forge new identities as an entertainment, education or social hubs.
Less hurdles, more orders
The next few years will see some of the mundane aspects of shopping removed thanks to the so-called ‘Internet of Things’. Everyday devices will be fitted with software, which facilitate repeat purchases. For instance, a coffee machine can detect when capsules are running low so an order with the supplier can be made without direct involvement from the customer.
Location, location, location
As well as spending time securing the best units in shopping centres, retailers will also have to work with digital ‘landlords’ such as Google and Amazon to increase visibility in search engine results. Meanwhile, as the trend for online shopping continues, marginal shopping areas could be used for other purposes such as housing, offices and community buildings as retailers focus on key stores in primary locations.
[EVENT] Yale’s Rethinking Marketing & Insights: Behavioural Economics Immersion
On June 13, join Ipsos’ expert in behavioural economics, Namika Sagara, Ph.D., who will be among the distinguished faculty leading a three-day, hands-on programme designed for senior executives wanting a solid grounding in behavioural economics framework that produces results.