With 2015 Around the Corner, What’s the Future of Retail?

 

 

 

So far, this hasn’t been a very merry Christmas for most retailers, and you can bet there won’t be any sudden surprises at this point. America has shopped and now they’re taking advantage of a desperate retailer.

 

Brands such as J. Crew, Prada, American Eagle, and Abercrombie & Fitch have all reported less than favorable third quarter earnings. A&F’s board of directors wasted little time in showing CEO Michael Jeffries to the door, offering him a “retirement.”

 

If you had a shiver that recalled the gloom of our most recent recession, you weren’t alone. What can we do better, and what can we expect from 2015?

 

We thought it would be interesting to hear from some of our friends and colleagues about their vision for 2015. From all of them we heard a collective Om.

 

Now breathe and say it with me: Om. Omnichannel.

 

Surprisingly, there are plenty who still think omnichannel sounds more like a Buddhist chant than a business strategy. Designer John Varvatos says the customer of 2015 will still demand just as much – if not more – brand engagement.

 

 

 

Designer John Varvatos has steadily expanded the role of his stores and explored new ways of connecting with customers in online and social media formats. 

“Consumers are more educated than ever and they’re looking for the best product, the best quality, and the best experience. We want our customer to have a 360-degree experience when they are shopping with us. We want them to be fully engaged at the store level, on our website, and through our social media channels.”

 

So why are so many retailers still so challenged? It might be because too many C-Suite executives slice and dice the customer experience and aren’t always using the same methods to validate their data.

We want our customer to have a 360-degree experience when they are shopping with us. We want them to be fully engaged at the store level, on our website, and through our social media channels.”  JOHN VARVATOS, JOHN VARVATOS ENTERPRISES

Many still look at their budget outlays the same way they did, say, ten years ago: segmented and with no relation to how the rest of their business operates. The e-commerce team, marketers, merchandisers, and store staff, all marching to their own drummer.

 

Meanwhile the successful retailer is operating seamlessly and paying close attention to what the customer is responding to.

 

 

For Gensler’s Barry Bourbon, the future of retail will continue to be in blurring the lines between physical and online retail. The firm’s recent projects with REI, Inc. were built around the idea of community, a core value that the client has continued to build on.

Just ask Barry Bourbon, principal and retail practice leader at Gensler’s San Francisco office.

 

“As technology continues to blur the lines between physical and online retail, omnichannel retail will become simply ‘retail’,” says Barry. “Because of this brands and retailers are relying heavily on their most loyal fans to not only help develop relevant and innovative products, but also to define the setting in which those new products are experienced.”

 

Japanese fast-fashion brand UNIQLO made major strides in 2014, but Larry Meyer, CEO of UNIQLO USA acknowledges there is still more to be done in building a seamless brand experience, as the retailer increases its foothold in the United States.

 

“Engaging with customers through interactive technology will continue to evolve and grow to meet the ever-changing needs of the customer,” says Larry. “This means combining both brick and mortar retail with e-commerce. And I believe this will only continue to grow in importance in 2015.”

“Brands that develop social platforms for customers to easily create and share content, personalize and customize product, and access relevant information will continue to gain momentum.” BARRY BOURBON, GENSLER

 

In other words, the successful brand lets the customer feel like they’re in the driver’s seat.

 

“The future of retail in 2015 will undoubtedly include an increased focus on one to one personalization,” says Heather Marie, Founder and CEO of Shoppable. “That means better customer experience and a wider-spread adoption of technologies that increase the point-of-sale experience– including things like universal checkouts.”

 

Heather makes an important point. Consider that only a few years ago, many of this country’s major retail executives continually misunderstood the Millennial shopper and made costly mistakes in trying to cater to them.

Many retailers are only just now understanding how to reach the Millenial consumer. “Both Millennials and their younger siblings, Generation Z, are continually putting their loyalty into brands that involve them early on.”

“Both Millennials and their younger siblings, Generation Z, are continually putting their loyalty into brands that involve them early on, allow them to share ideas and thoughts, and see those ideas realized,” says Barry.

 

“Brands that develop social platforms for customers to easily create and share content, personalize and customize product, and access relevant information will continue to gain momentum.”

 

2015 will also see a growth in marketing strategies where advertising emphasizes a call to action and awareness, giving the customer a feeling of being a brand partner – not just a customer.

 

“The future of retail in 2015 will undoubtedly include an increased focus on one to one personalization.” HEATHER MARIE, SHOPPABLE

The Fall 2014 John Varvatos campaign featured Ringo Starr and built a community around a cause that is close the company’s founder. “[It] opened our eyes that consumers are hungry for content and to participate.”

John Varvatos saw that effect with this season’s fall campaign.

“Our Fall 2014 ad campaign featuring Ringo Starr featured a social media initiative that supported the David Lynch Foundation,” says John, referring to the non-profit organization that provides transcendental meditation classes to help at-risk youth, among others.

 

“This kind of integrated marketing campaign allowed fans across the globe to get involved in a cause. For us, it really opened our eyes to how consumers are hungry for content and to participate in something that is meaningful. We want to take this approach for everything we do.”

 

REI, Inc. used a similar approach with a brand advisors program.

 

REI, Inc. has recently experimented with creating a panel of brand advisors which offer feedback and insights on the brand experience and product assortment.

“They asked these advisors to give their opinions and insight on both products and the store experience, and effectively created this community where ideas flow freely,” says Barry. “The net result for REI is that this is insight that helps them to direct future decisions for the brand.”

“I think localized retail that emphasizes the smaller designer or craftsperson will still be a key theme in 2015.” ANNE MARIE LUTHRO, AML INSIGHTS

Experiments in localized retail experiences – where customers can personalize products and stores are designed to echo the style of a particular town or neighborhood – continues to gain traction. This Christmas, we’ve seen a lot of examples of pop-ups becoming business-as-usual rather than just a marketing exercise.

 

At San Francisco’s Westfield Mall, Artisan Square has been getting buzz, a multibrand shop that showcases dozens of local start up entrepreneurs.

 

At San Francisco’s Westfield Mall, an Artisan Square store brings together an edited assortment of small merchants, adding a sense of local craftsmanship to the usual array of chain stores.

“I think localized retail that emphasizes the smaller designer or craftsperson will still be a key theme in 2015,” says Anne Marie Luthro, CEO of AML Insights.

 

“Call it ‘artisanal’ or ‘small batch,’ this is the kind of thing that still draws shoppers seeking newness and authenticity, and brings a different dynamic to traditional malls.”

 

 

 

 

Leave a Reply

Click here to cancel reply.

You must be logged in to post a comment.