The New Retail
Retail isn’t what it used to be—with so many different ways to shop and buy, retail itself is a constantly evolving industry.
In a recent post from DHL’s Supply Chain Matters, they discuss what’s coined as, “Retail 2.0,” focusing in on the top eight trends in retail.
E-commerce is so ten years ago. Today’s shoppers are all about M-commerce—that’s mobile commerce for short. According to a 2011 Comscore survey, 38 percent of smartphone owners used their phones to make a purchase. And with smartphone users only increasing, m-commerce will only continue to become more popular.
The power of analytics and data drives personalization. Gartner research predicts that by 2015 approximately half of leading retailers will be creating real-time personalized offers.
The combination of geo-location and social media, or somolo, apps such as FourSquare makes it easy for marketers and brands to target their potential customers. Simply by “checking in,” consumers can receive deals based on their location.
In a still struggling economy, consumers are watching their wallets. Apps that give consumers the power to compare prices impact the bottom line for retailers.
While not all retailers can offer low prices and discounts, they need to find other ways to stay competitive. They do this by creating an experience the consumer can remember—think of stores like Nike, M&M’s and Bass Pro Shops that truly create an environment.
Rising fuel prices have increased the demand for local stores, so big name retailers have taken notice. Retail-giant Wal-Mart has started Express stores that are much smaller than traditional stores. However, larger chains coming to cities could mean trouble for locally owned businesses, so it’s important for retailers of all levels to compete.
The new retail doesn’t have time for a slow supply chain. Fashion retailers in Europe have reinvented their supply chain, allowing for garments to be designed, produced and delivered in 15 days. The US cycle takes much longer, but with competition soon to encroach, US retailers will need to step up their game.
Smaller retailers are joining together to tackle larger ones in order to gain market share.
As retail continues to evolve, it’s exciting to see how technology, location and competition will continue to emerge and play a role in the future of retail. Share your thoughts on the future of retail by commenting below, or on our Facebook or twitter pages.