“Who controls the past controls the future. Who controls the present controls the past.” – George Orwell I dare to disagree with one of our literary greats, as in times of rapid and structural change rules don’t slowly evolve, but can be disrupted completely by new players that change the game entirely (e.g. Apple’s iPod, Amazon, etc). Therefore, sometimes who controlled the past can’t control the future at all. And who controls the present wasn’t even around in the
e past.
Like many of us, I have always been attracted to the diversity, speed, and immediacy of retailing. This has not changed, however, the speed and impact of enablers such as technology create a uniqueness and perspective on the individual customer that we are really only scratching the surface of.
If retailing is the marriage of art and science, perhaps the science is really taking us to new levels.
At Retail Doctor Group, through our consumer insights division, global alliances, and domestic experience, we view 2014 as containing some strong accelerating themes including:
The rise of m-commerce: (Calling Dick Tracey)
Mobile commerce to wearable m-commerce is in the developing stage and this will accelerate. The opportunity is for retailers to convert 80 per cent mobile research rates to conversion that is currently sub 10 per cent is a gantlet to be seized. This is easy to say, yet requires a truly compelling cross-channel offer that in many cases we are just beginning.
RIP the desktop
The desktop is soon to be dead, and mobility in data from consumer metrics, shopper analaytics, behavioral understanding at the level of one, will begin the journey of changing retailer’s relationship with the customer into a far more intimate and connected understanding. It will all be about mobility, accuracy, speed, and effectiveness of data.
From random to personification to prediction
Consumer data captured and converted into predictive insights about customer tastes, likes, and shopping patterns is already permeating. George Orwell’s’ big brother is here and will only become more immersive, changing the way businesses will market products and services. I am reminded of Target US using predictive consumer insights across all channels right down to the location of a certain product within a store.
Consumer neuroscience, neuromarketing, and big data signify the growth of new and powerful ways to interpret consumer decision making and behaviour. These new approaches will stampede through traditional market research methods of consumer understanding and will allow retailers to take more predictive decisions in real time.
But what about the customer in all this? Our research indicates that the customer increasingly demands this level of personalised, timely, and meaningful connection.
Guess who’s coming to eat our dinner
New neighbours will grow in numbers as Marks & Spencer, Hamley’s,H&M, Uniqlo, River Island,Banana Republic, Old Navy, Dolce & Gabana, Suit Supply, and sub-brands such as Zara Home, enter Australia’s retail landscape and we become part of the global cities’ portfolio.
The world gets smaller, and this continues as supply channel becomes even more of a differentiator than before. We move from recorded time to real time in all aspects from fulfilment to customer experience.
The “maturing” of online retailing
Online is set to reach 10 per cent of average retail sales across all sectors.
Pureplay retailers will move to open physical stores and pop ups to capture part of the other 90 per cent. Already we see online pop up stores emerging. Eighteen of 20 of the top US online retailers have physical store networks – the argument that online pureplay will dominate the retail sector is largely fictional, with only a handful of notable exceptions. Expect to see consolidation and rationalisation among the online community.
Speaking in terms of channels being independent will be very passé 2014.
It’s the turn of the business information provider
Capital to fund business information systems/data and consumer data management will be central to successful omni-channel retail (those without will fall behind). For many the short term business case won’t stack up to fund critical omni-channel BIS platforms, despite being essential.
Retailers that start their omni-channel investment at the customer experience end will invariably waste a lot of time and money – getting the business information platform is the crucial first step to getting one view of the customer.
A new voice in the corridors of power
The changing of the guard will see our major retailers undertaking changes at the helm, with Myer and David Jones leading and probably allowing international retailers to continue their presence in Australian retailing.
The generation of retail leaders to follow will start to take more senior roles, and in this case they will be more “digital natives” than the ones they have succeeded.
Happy fit retailing
Brian Walker, Retail Doctor Group
* Brian and Retail Doctor Group can be contacted on 02 9460 2882 or by email on businessfitness@retaildoctor.com.au. For more information please visit www.retaildoctor.com.au