The 5 Biggest Retail Trends In 2021

The 5 Biggest
2021
Retail Trends In

© 2020 Bernard Marr, Bernard Marr & Co. All rights reserved
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Retailers have seen a massive impact of the coronavirus pandemic. Digital
transformation became more urgent than ever, and consumer behavior is shifting fast.
Here are the five biggest trends every retailer should be ready for.
Since online shopping became a reality, retail has become increasingly digital and
internet-driven. Bricks and mortar stores have adopted elements of the online
experience to encourage us to continue visiting them, and also played to the strengths
that in-person experiences can offer, such as more personal levels of service.
The 5 Biggest Retail Trends In 2021

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But the coronavirus pandemic has affected the way every trend will play out in 2021, and
offline retail has been hit particularly hard. This has led to widespread job losses and
famous names disappearing from shopping centers around the world. At the same time,
online retail has boomed more quickly than ever before as consumers choose to remain
safely indoors, and home delivery infrastructure becomes increasingly sophisticated.
Here are my predictions on how the world of retail will continue to change over the
course of 2021 as the pandemic and other factors continue to influence our habits.
The 5 Biggest Retail Trends In 2021

Omnichannel - Offline is online, online is offline
This is a big one, that actually involves the coming together of several different trends,
including AI, robotics, IoT, and extended reality (XR) – which includes virtual and
augmented reality (VR/AR).
Connecting these technologies is enabling retailers to bring the convenience of online
shopping to offline shops and stores, and the richly interactive environment of offline
shopping to the world of e-commerce. While the general trend has seen offline retailers
moving into online by establishing e-commerce divisions of their businesses, more lately,
we have seen online retailers developing a bricks 'n' mortar presence.
At their most sophisticated, this trend includes initiatives such as Amazon's famous
cashier-less stores opening in the US, as well as Walmart's experiments with allowing
customers to order and pay in-store and have goods delivered to their homes. At the
other end of the spectrum is the trend of smaller start-ups and cottage enterprises
opening pop-ups, concessions, and collaborations with bigger brands.
.

Omnichannel - Offline is online, online is offline
VR environments will increasingly be used by online retailers to provide immersive,
feature-rich shopping experiences. At the same time, AR will be deployed by offline
retailers to allow customers to access information about products they find on the shelves.
While this pandemic continues, retailers are using tech-driven solutions to allow
customers to virtually try out clothing and makeup, reducing contact between shoppers
and in-store items.
This convergence means offline and online retail both benefit from advances in
technology and changing patterns of behavior.

AI increasingly customer-facing across the retail
industry
AI-driven big data retailing has been maturing for some years now, with major retailers
relying on advanced analytics to understand what should be stocked in their stores and
drive efficiencies in logistics. Newer developments have seen this technology moving from
back-of-house to front-of-house, with customer-facing initiatives such as chatbots and
virtual assistants. Likewise, while robots have been hanging out in warehouses and stock
rooms for a while, assisting with inventory management, in 2021, we can expect to see
them taking to the shop floor too.
With so many of us stuck at home and retailers unable to find new customers by enticing
us to walk into their stores, more resources will be focused on growing customer numbers
with AI marketing outreach. This is used to work out whether their best customers are
likely to be spending their time on Facebook, Netflix, or taking part in Zoom calls, and
assigning advertising budgets accordingly.
AI-powered voice recognition technology has improved to the point where it can truly be
used to add value both in-store and via e-commerce apps.
Just as it is becoming increasingly common to use our voices to control our devices or
search the internet, we will increasingly use them to get information and make purchases,
and retailers will adapt their infrastructure to fit these changing habits.

Autonomous Deliveries and Fulfilment
This one's been on the horizon for a while, but with the pandemic-driven changes, we're
making to our behavior this year, we're likely to see ideas such as self-driving delivery
vehicles and drone delivery really coming to life. Though switching to online ordering and
deliveries reduces the likelihood of coming into contact with people carrying viruses,
there's still a fear of contamination caused by poor hygiene at order fulfillment centers or
delivery networks. Autonomous fulfillment and delivery reduce risks around this, which is a
factor likely to lead to accelerated acceptance and adoption of these new technologies.
Over the next year, autonomous delivery initiatives are likely to remain focused on “last
mile" solutions, employing self-driving vehicles and airborne drones for trips between
fulfillment centers and consumers’ homes.
Again, several trends will be involved here, including AI, to manage logistics and routing.
Others will also most likely include blockchain, to ensure security and transparency along
supply chains, and digital twinning, allowing sophisticated models of logistics and
fulfillment operations to be built, driving efficiency.

See it, like it, buy it!
Forget shop both online and offline – purchases directly from manufacturers through
influencers, advertising and even TV shows is likely to become an increasingly prominent
part of the retail landscape throughout 2021.
Retailers have long encouraged bloggers and influencers to earn money by sharing
affiliate links, and advertise via product placement. Increasingly, brands are able to cut out
the middle man and sell directly to the consumers who follow and engage with these
online taste-makers.
The trend started with megastars like Kim Kardashian but has increasingly trickled down
into niche markets served by micro-influencers. This has largely been enabled by tech-
driven supply chain innovation, making "drop-shipping" possible– direct delivery from
manufacturers to customers via a sales agent, such an influencer or popular website, that
can run a retail business without the hassle of buying stock or fulfilling orders.
Brands, including Body Shop, have successfully co-opted the direct sales model pioneered
by the likes of Avon, creating networks of micro-influencers often selling to friends and
family.

See it, like it, buy it!
Another exercise in cutting out the middle man of the traditional retailer is seen in
experiments with shoppable TV. NBC rolled out technology that allows app users to be
notified when products they see on screen are available for direct purchase. This
actionable product placement means customers can interact and make purchases directly
from TV advertising, but we can also expect to see it rolled out through sports coverage
and entertainment TV, as brands look for new ways to engage with their digital audience.

Personal shopping at scale
Well-heeled shoppers are used to receiving personal attention when shopping at high-
end stores, and personalizing their high-value purchases such as cars, bespoke clothing,
and jewelry. However, technology is now ushering in a new age of mass-personalization,
allowing this to be carried out at scale across a growing range of goods and services.
Recommendation engines are used in e-commerce to point us towards products we’re
most likely to want or need. The same technology is now being rolled out in retail outlets,
arming shop assistants (or possibly robotic ones, see above) with information on who we
are, and our past purchases. Beauty product retailer Sephora collects information on
customer preferences via an app as they explore and rate products online, and makes
them available to sales staff when they visit a store in person. According to analysts at
McKinsey, initiatives like this typically reduce marketing costs by around 20%.
If you would like to learn more about technology trends, then have a look at my books:
Tech Trends in Practice: The 25 Technologies That Are Driving The 4th Industrial
Revolution and The Intelligence Revolution: Transforming Your Business With AI.

Bernard Marr is an internationally best-selling author, popular keynote speaker, futurist, and a
strategic business & technology advisor to governments and companies. He helps
organisations improve their business performance, use data more intelligently, and
understand the implications of new technologies such as artificial intelligence, big data,
blockchains, and the Internet of Things.
LinkedIn has ranked Bernard as one of the world’s top 5 business influencers. He is a frequent
contributor to the World Economic Forum and writes a regular column for Forbes. Every day
Bernard actively engages his 1.5 million social media followers and shares content that
reaches millions of readers.
Visit The
Website
© 2020 Bernard Marr , Bernard Marr & Co. All rights reserved© 2017 Bernard Marr , Bernard Marr & Co. All rights reserved
Bernard Marr is an internationally best-selling author, popular keynote speaker, futurist, and a
strategic business & technology advisor to governments and companies. He helps
organisations improve their business performance, use data more intelligently, and
understand the implications of new technologies such as artificial intelligence, big data,
blockchains, and the Internet of Things.
LinkedIn has ranked Bernard as one of the world’s top 5 business influencers. He is a frequent
contributor to the World Economic Forum and writes a regular column for Forbes. Every day
Bernard actively engages his 1.5 million social media followers and shares content that
reaches millions of readers.
Visit The
Website

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The 5 Biggest Retail Trends In 2021

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