The metaverse will not be a 3D reproduction of our existing world. It will be all about consumers seizing power, according to Piers Fawkes, founder of US retail trend agency PSFK. Therefore, in 2022, resilience will once again be vital for retailers.
What are your key conclusions from 2021?
“Resilience was my message for 2021, but it looks like it will remain just as important for 2022. A flexible structure allows companies and organisations to respond to change. After all, change remains the code word. Last summer, our worries surrounding Covid seemed to be behind us for a while, but we all saw how quickly that turned around. It is therefore imperative to build in the necessary resilience to be able to ride all the waves.”
Is e-commerce dropping back to ‘normal’ levels? How will it evolve in 2022?
“E-commerce can no longer be seen separately from omnichannel. It is obvious that online sales have had a strong tailwind, and that wind will continue to blow. The pandemic has created a habit that is here to stay. For example, people were still hesitant about buying food online in some countries, but that is no longer the case.
We even see progressive new forms of e-commerce emerging, such as express delivery companies that deliver within fifteen minutes. Europe is clearly taking the lead in that field with players such as Gorillas and the French company Cajoo. This raises the question of why consumers would still go to physical stores. I don’t mean to say that people won’t go to the shops anymore, but I do mean that it becomes a more deliberate choice.”
Will fast and contactless remain the credo, or will we see a return of high-touch, high-experience?
“Frictionless and obstacle-free should be the target. In this sense, contactless shopping is certainly not just a pandemic phenomenon; it existed before that. Contactless is about removing friction. People are looking for convenience and speed, so take away the contact points that cause friction. Instead, add contact points where you differentiate yourself as a brand or retailer and truly add value. A cash register, for example, is merely friction, while a staffed customer service desk could be a differentiator.
The expectation towards physical stores is changing. People expect ‘smart stores’, while the physical experience is still quite old-fashioned today. Unfortunately, there are not many examples of retailers who have understood this. Retailers still hope that things will go back to the way they used to be, but instead, the gap between them and the consumer is widening.
For example, a store should know that I am entering the car park so that they can prepare my order, welcome me and possibly even adjust prices or promotions automatically. Smartphones make all that possible, but the retail experience is often not up to speed with the mobile age. That’s why people love e-commerce.”
What will be the importance of new retail models in 2022, such as second-hand, subscriptions, leasing…?
“We are seeing the rise of the ‘omniconsumer’: an omnipotent consumer who has access to so much information that they take power into their own hands. People worldwide are sharing information with each other but are also trading with one other. New Web3 tools create forums for people to buy and sell as a group.
You can already see this happening in streetwear and trainer culture: sneakers are becoming an investment product that a group of consumers is particularly aware of. People become aware of how much things are worth and start ‘consuming’ in a completely different way.
In that sense, I also envision the metaverse, which everyone is talking about now. In my opinion, the way Facebook is presenting it is wrong: the metaverse will not be a 3D reproduction of our existing world. It will be a decentralised system where communities can find each other to buy, share and communicate. Last year we saw the app Clubhouse emerge; today, there is chat platform Discord. To me, these are examples of the ‘metaverse’.
By the end of 2022, I expect a lot of new companies on web3 platforms. The internet is democratising, especially with evolutions like blockchain and smart contracts. For example, you could imagine people having digital passports for everything they possess. That way, they could safely exchange, rent and resell it. Today, people still tend to get a bit nervous about other people and their stuff, but post-pandemic that could grow significantly.”
What ‘road to recovery’ do you anticipate for retailers?
“For too long, there has been talk about investing in perception and ‘experience’. In the meantime, new retailers are emerging, online or in the smaller shopping streets and alternative neighbourhoods, where all of this happens automatically. Their main asset is that they genuinely build a community, which is delightful to see. They create a buzz with their target audience and form a close-knit community.
When I walk around New York, I find all kinds of new retailers and brands that I’ve never heard of but that are very much alive. I recommend everyone to walk around and discover the renewed landscape for themselves. Also, invest in interactions with your customers and target group. Genuinely engage in the conversation.”
