Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Future of retail - Five key future trends - 9 Dec 2020

Future of Retail – Five Key Trends

The pandemic has accelerated change across many sectors – and especially retail. More online, less physical and empty malls have been evident globally. So what about the next ten years? What changes will continue to accelerate, which will rebalance, and which new ones will emerge?

Based on extensive dialogue with retail, tech and city leaders globally, this new point of view brings together the major shifts in the mix collated under five key trends – Reemphasis on the Local, Identity Insights, Automated Retail, Continuous Interaction and Informed Consumers.

Now being used to stimulate new thinking, innovation and strategy development in multiple projects around the world, this is being shared to continue dialogue on changes and impact.

We welcome your views @futureagenda

  • Login to see the comments

Future of retail - Five key future trends - 9 Dec 2020

  1. 1. The Future of Retail – Five Key Trends Insights from Multiple Expert Discussions 9 Dec 2020
  2. 2. Context This presentation draws on emerging shifts that will impact the future of retail - mixing macro trends with sector changes as well as consumer expectations. Future of Retail Macro Sector Consumer Relevant Global Trends • Impacting many areas • Driving lasting change Customer Experiences • Setting expectations • Influencing behavior Retail Changes • Emerging in niches • Accelerating impact
  3. 3. Five Key Future Trends for Retail The insights have been used to stimulate debate on the priority for retail in the years ahead - five key future trends and supporting evidence are detailed below. 1: Re-emphasise the Local – Sustained importance of the local and the physical 2: Identity Insight – Digital ID enables bespoke experiences, pricing and engagement 3: Automated Retail – Delivering differentiation within the automated experience 4: Continuous Interaction – Buying, delivery and return are anytime, anywhere 5: Informed Consumers – More, better data gives customers more influence and control
  4. 4. 1: Re-emphasise the Local – Sustained importance of the local and the physical
  5. 5. 1: Re-emphasise the Local – Sustained importance of the local and the physical
  6. 6. Accessible Cities A key ambition for many is to plan cities for people not cars, providing better public transport, new cycle ways and creating more walkable areas, while also encouraging more integration rather than segregation.
  7. 7. Local Superblocks Major cities seek to revitalise localised communities through improving accessibility. The 15-minute city ambition drives more to emulate Paris and Barcelona. Local hubs act as a focal point for shared product and service access.
  8. 8. Working Near Home Post Covid19, higher levels of remote working are sustained for some. At-home and localised working become the norm for many in the service sector. Local communities are rejuvenated as work, retail, leisure and interaction align.
  9. 9. Local Clusters Local hubs for those in knowledge-based sectors have long been proposed as a means of minimising the daily commute. ‘Work, live, play’ clusters in cities allow residents to access different activities including retail all embedded in one area.
  10. 10. Emphasis on the Local With more single households, sustained working near home and delayed retirement, many seek to make more of their local communities. Finding common interest and activities is a priority for several.
  11. 11. The Human Touch In a world of global and digital marketing and consumption, consumers will increasingly favour those brands that can offer more emotional engagements, and specifically human-to-human contact.
  12. 12. 2: Identity Insight – Digital ID enables bespoke experiences, prizes and engagement
  13. 13. 2: Identity Insight – Digital ID enables bespoke experiences, prizes and engagement
  14. 14. Digital ID Validation of credentials and age verification is instantaneous, with the user increasingly in control. Shared access to digital identity platforms disrupts proprietary business models.
  15. 15. Emotional Insight Retailers use a combination of AI and facial recognition to assess the emotional state of shoppers – and then adapt staff interaction to suit.
  16. 16. Full Journey Transparency Ubiquitous tracking and data analytics provide brands with real-time insight into the full customer journey, before and after the core interaction.
  17. 17. AI Integration The use of AI expands to enable the ‘seamless’ retail experience. Deep learning and chatbots are widely deployed: physical and digital experiences are blurred as machines automatically configure options.
  18. 18. Dynamic Pricing More products and services are priced for the individual and the moment. All prices are variable and flex depending on demand, interest and need.
  19. 19. Frictionless Payments Banks finally deliver the zero friction ambition as location sensing, digital identity and the IoT are integrated to provide real time validation and payment.
  20. 20. 3: Automated Retail – Delivering differentiation within the automated experience
  21. 21. 3: Automated Retail – Delivering differentiation within the automated experience
  22. 22. No Staff Stores More brands experiment with outlets that have no staff. Customers access and pay for product digitally as shelves are restocked automatically. 24/7 continuous operation is at the core of many propositions.
  23. 23. Urban Delivery Small, slow-moving, autonomous robots act as an accelerator of automation. They enable safe, clean, convenient and low-cost delivery and help to raise public confidence in the wider adoption of unmanned logistics.
  24. 24. Automated Retail Automation is progressively embedded within many areas of retail. While robots providing customer support and stocking shelves are the most visible, ‘hidden’ tech like facial recognition is changing the customer experience.
  25. 25. Conversational Commerce Customers are increasingly comfortable interacting with chat-bots. Many are more open, honest and flexible with machines than human support. Voice becomes a primary mechanism for frictionless payment.
  26. 26. Automation of Interaction Information-rich jobs are initially supported by a first phase of AI but replaced by the second. Automation mimics behaviours previously unique to humans.
  27. 27. Data as an Asset Organisations are obliged to account for what data they own or access. They are required to report their full data portfolio and are taxed on this. Leaders seek to have a far better and informed view of the value of data.
  28. 28. 4: Continuous Interaction – Buying, delivery and return are anytime, anywhere
  29. 29. 4: Continuous Interaction – Buying, delivery and return are anytime, anywhere
  30. 30. Meaningful Locations Successful physical interaction with consumers moves to the few select locations and moments where they want to, or need to be, on a regular basis.
  31. 31. Flexible Formats As the pace of change for technology and consumer expectations accelerates, many retailers adopt increasingly flexible smaller options. More specific propositions and experiences are tailored to niche markets.
  32. 32. Experience Centres Brands seek to create interactive venues where you can try, but not buy, products. Immersive experiences are designed to engage, excite and educate customers and seed digital purchase.
  33. 33. Omni-Channel Fulfilment Order delivery increasingly integrates multiple options that best suit individual customer preferences and brand capabilities – mixing traditional options such as home delivery, click and collect with in-car and to-person drop off.
  34. 34. Seamless Returns Returning unwanted products is a smooth as same-day delivery. Brands compete to automate making taking-back as seamless as ordering.
  35. 35. Regular Subscriptions Online and physical brands alike seek to deepen customer relationships through providing weekly, monthly or quarterly home delivery, often at a discount.
  36. 36. 5: Informed Consumers – More, better data gives customers more influence and control
  37. 37. 5: Informed Consumers – More, better data gives customers more influence and control
  38. 38. Shared Data Customers are progressively willing to share their data in exchange for better, more personal products and experiences. Retail brands compete to access and analyse information in real-time to tailor interaction, support and pricing.
  39. 39. Greater Transparency Consumers seek, and can, see a fuller picture on product provenance. Digital tracking of source, processing, production, distribution and retail location, timing and pricing are all available to those who want to know.
  40. 40. Love: Warts and All With corporate transparency becoming a necessity, businesses have to address it as both an opportunity and a threat. Successful brands will find ways to take customers with them - even as they reveal their less attractive sides.
  41. 41. Polyamorous Loyalty Brands begin to embrace customer promiscuity, finding ways to recognise their emergent desire to build a patchwork identity through diverse and conflicting choices.
  42. 42. Millennial Shopping Millennials and Gen Z form the majority of shoppers and want deeper, more social experiences. Although digitally informed and researched, interaction within physical stores with friends is an increasingly preferred option.
  43. 43. Transactional vs. Emotional Seamless payments will distance consumers from understanding monetary value. Brands reconsider the way they connect to customers providing more holistic and emotional value.
  44. 44. Future Agenda Limited 84 Brook Street London W1K 5EH +44 203 0088 141 www.futureagenda.org | @futureagenda

×