In an industry that is constantly moving and is relentless towards laggards, it’s crucial to be up to date with the latest evolutions in the business. At PSFK’s annual Retail Innovation Week, experts talk about key trends that will shape the future. We selected a few highlights, focusing on the fastest growing trend of the moment: e-commerce.
Experience is key
There is one thing everyone seems to agree on: the online shopping experience has to be smooth and efficient. Megan Higgins, VP and general manager of Avalara, saw the exceptionally busy end-of-year season as a success in the light of those keywords. She considers Amazon’s logistics network a great example to aspire to.
For retailers struggling with issues such as slow deliveries or a weak check-out system, she recommends investing in new technology. Coulter Lewis’ gardening company Sunday, for example, uses a complex algorithm and collects data to make transactions as simple as possible for the customer.
Providing fun and interactive experiences for the whole family? That is the mission of Benjamin Kaufman, founder of Camp, a store that is shifting its focus from the products to the experience. After the compulsory closure of physical stores, he translated the concept, which consisted of all kinds of in-store activities, to the screen.
“We integrated e-commerce with birthday parties, interactive videos for all ages, and gift exchanges,” said Kaufman, “This transformation from ordinary transactions to memorable social moments is a formula we are going to continue to build on.” On top of that, Microsoft‘s Digital Strategist Ram Iyer spotted partners making e-shopping more interesting through video consultations, live stream services such as Taobao Live, and VR.
Loyalty in exchange for exclusivity
One of the obstacles for a retailer is to build consumer loyalty. Ranjan Roy learned this during his years as VP of Strategy at women’s lingerie brand Adore Me. “It’s hard to satisfy new customers, especially in an industry like lingerie.” The shop offered a VIP membership during its early years, which showed the power of an efficient loyalty programme and subscription system. The next move was the Elite Box, where customers receive a packet, buy what they like, and return the unwanted items. “This service will soon become an indispensable part of our business,” predicts Roy,” we also expect ‘predictive e-commerce’ to play a key role in the future.”
Personalisation in many shapes and forms
Ever since e-commerce has become a staple in our economy, and as it has been ready for its next steps on the road to improvement, personalisation has been a crucial factor for retailers to consider. Julie Bornstein’s fashion platform The Yes uses an AI-driven personalisation process that analyses style choices and ranks products based on relevance. The data collected is based, for instance, on a questionnaire that customers fill out upon registration. The home feed in the app, in turn, suggests relevant items. The result is a shopping experience that is fully tailored to each customer’s taste.
Model. No, the home design shop run by Philip Raub goes one step further. “I notice that consumers are increasingly craving something unique and personal. So, in our digital design studio, buyers can experiment with shapes, sizes and colours. What’s more, they will receive the item within five weeks thanks to CNC fabrication and 3D printing.”
Reaping the benefits of good cooperation
Last year, perhaps more than ever, we realised how much we need each other, and it’s no different for retailers. “Be curious, inquisitive and open to partnerships,” is the advice from eBay‘s Head of Brand Advertising & Partnerships, Scott Kelliher. “The mutual transparency between eBay and its partners gives the latter a unique opportunity to understand their customers better, cultivate efficient sales tactics, and learn from mistakes.”
Ranjan Roy applies that philosophy to the relationship with the customer. Since the rise of Instagram, brand ambassadors have become a staple in fashion retail. Adore Me, however, stands out with a flexible approach to the concept. Since they are not a ‘celebrity brand’, they started the self-serve platform Creators, where novice influencers can participate in campaigns in exchange for discounts on future purchases. “It’s a win-win scenario,” says Roy, “customers are collaborating with a company they love, and our products are being shared with the world diversely and creatively.”
