Consumers as VIPs, the reinvention of money, robots at your service: welcome to the Future of Retail 2020
As the UK retail sector faces up to a tough new post-Brexit landscape, retailers must stay ahead of the factors influencing fast-changing consumer behaviour.
LONDON; 27 JULY 2016: Digital innovation consultancy Futurice has identified eight key IT, cultural and social trends driving change in the retail sector in order to identify short-term customer opportunities in the run-up to 2020.
Analysed from a consumer’s point of view the trends include:
● Consumers as mass VIPs
Digital services are allowing mass consumers to access luxurious experiences at the click of a button, that were previously the preserve of the rich and famous. Retailers are under starters’ orders to provide personalised services that make consumers feel special. The culture of mass celebrity is fuelled by social channels which enables ordinary people to become overnight YouTube or Instagram sensations. How can retailers respond appropriately?
● Time as a luxury purchase
How consumers are controlling the logistics of when and where they shop with the emphasis on convenience, immediacy and saving time. Retailers must offer flexible delivery services and instant purchase apps. Free time will become a luxury purchase with the rise of micro task services that allow consumers to outsource tedious jobs and buy themselves more leisure time.
● Currency reimagined
Money is being reinvented as retailers seek frictionless payment systems including paying with your smile – all focussed on convenience and ease. New transaction methods are spawning new forms of currency, with mobile payments leading the way. Retailers should look for ways to monetise the auxiliary activities around payments, while loyalty and reward schemes must keep pace with emerging trends.
● Robots at your service
Increased automation in the form of robotics is taking over everything from self-service checkouts to warehouse logistics. Beyond retail, robots are being trialled everywhere from construction to cookery to surgical operations. As we increasingly outsource menial jobs to robots, how will retailers rise to the challenge of monetising our free time?
● Collaboration to drive innovation
Collaboration not competition is the new order of things as businesses join forces to create new ways to meet consumers’ fast changing expectations. Expect unusual partnerships and the emergence of larger service ecosystems designed to satisfy customers’ needs flexibly and fast.