In a era of WFH, lockdowns, and avoidance of crowded areas, the retails sector has had to adopt a flexible approach and more innovative strategies to adjust to new consumer habits and keep their customers engaged.
In 2022, marketers are reassessing their resources and reorganising their distribution channels to keep up the times.
According to the online platform Tiendo, these are the 5 key trends that will revolutionise the retail industry in the new year.
Changes in shopping habits have made digital platforms the preferred medium for marketers to connect with consumers. According to a study conducted by Tiendo, 58.6% of retailers and brands will be investing in digital channels in 2022. Likewise, investment in traditional media (TV, radio or outdoor advertising) has instead shifted to digital media. The study revealed that digital marketing (80.8%) along with social media (68.8%) will be the most prominent investments for marketing budgets in 2022.
Rise of the ‘experiential store’
Stores that offer experiences - by combining physical and digital worlds at a specific time and place - will take precedence over traditional shopping experiences. In the long term, this is set to result in the collapse of the shopping centre as we know it. Instead, it will be replaced by a more flexible business model, one in which temporary or even one-off campaigns will become the norm. Shopping centres will become stages, where different types of shows will be offered to encourage the consumption of a particular product or brand.The objective is to attract consumers to a store through unique, emotion-based experiences that foster a deep connection and bond.
According to Tiendo CEO, Eva Martín, consumers now want a memorable and frictionless experience, where “digital will play a key role".
The future of retail will see artificial intelligence, augmented reality and virtual reality be key components in physical stores. There will be an increased focus on autonomy and self-service, where consumers shop in places that are virtually unmanned and there is no checkout.
For example, till points will use advanced AI camera technology, to allow customers to simply walk out with their purchases without having to check out.
The development of this type of store allows retailers to compete with e-commerce giants by providing a more convenient and frictionless experience.
When it comes to online shopping, consumers can be taken to a store from the comfort of our own homes through augmented virtual reality, and undertake their shopping trip as if they are there.
The circular economy will be at the core of all business strategies
Concern for the environment will drive new retailer trends and strategies. Zero waste, second-hand and used markets will continue to grow, giving consumers the power to consolidate their purchasing power with environmental protection.
Many retailers have also made a commitment to eliminate the production of their paper catalogues and instead transition to more sustainable digital catalogues.
Increase in ‘social shopping’
Social shopping, where brands and influencers will rely on influencers and ambassadors to promote their products on social media, will continue to be a growing trend in 2022. According to the Tiendeo study, 58% of retailers and brands intend to increase their advertising investments on social networks in the next 12 months.