Fashion

Three digital consumer trends retailers should know


With 51 percent of the world’s population using the Internet, it’s
crucial for retailers to take a look at the latest digital trends and
developments shaping the way consumers interact with their favorite brands
and stores. Here are three trends likely to gain traction in 2019,
according to a recent report by market research firm Euromonitor authored
by its Global Head of Digital Consumer, Michelle Evans, and consultant
Amanda Bourlier.

Unmanned stores will open up new business models

Will sales clerks soon be a thing of the past? If we take a look at what
some of the world’s biggest Internet giants are experimenting with, the
answer is yes. Chinese e-commerce powerhouse JD.com intends to open
“hundreds” of unattended convenience stores while its main competitor,
Alibaba, launched both an unmanned convenience store and an unmanned hotel,
where robots deliver food and drop off fresh towels. In the United States,
the trend is led by Amazon Go, a chain of partly automated stores where
customers can purchase products without checking them out, just scanning
them through the Amazon Go app.

Euromonitor predicts unmanned stores to grow in the US, China and
beyond, with 2019 witnessing the start of a “profitability arms race” in
the segment. These pioneering stores are also likely to inspire new
business models. Expect some interesting startups to appear very, very
soon.

Key takeaway: Brick and mortar stores should evaluate
whether automation makes sense for them and, if so, how they will implement
it.

Voice command to gain even more traction

The growing popularity of smart speakers like Amazon Echo and Google
Home is believed to lead to an explosion of voice-based shopping: sales
volume is expected to grow from 25 million US dollars in 2013 to 200
million US dollars by 2023.

Companies looking to tap this opportunity should focus on pre- and
post-purchase tasks, according to Euromonitor. Take example from PetCoach,
a US-based pet shop chain providing care advice via Amazon Echo and Google
Assistant. Users can ask questions to PetCoach about how to best care for
their dog or cat. Another great example is the partnership between Ford and
Starbucks, in which drivers can place Starbucks orders directly from their
vehicle. In sum, retailers should be creative and start thinking about how
they can make their customer’s lives easier and establish their “brand
voice” through these devices.

Key takeaway: Retailers should think of new strategies for
communicating with their customers through voice alone and explore untapped
possibilities in this growing market.

Consumers are resisting the always-on mentality

Most Internet users (69 percent, to be more exact) access the world wide
web on a mobile phone at least once a day, with 53 percent of them saying
they would be “lost” without mobile Internet access, according to the
report. However, many of them are growing aware of the costs of having
constant access to the Internet: around 25 percent of Americans strongly
agree that the Internet adds a great deal of stress to their lives. In
Russia, India and the Middle East, over 40 percent of consumers say the
same. Add privacy concerns to the mixture and there you have it: a growing
number of consumers looking to diminish Internet use. A “digital detox”, if
you will.

“While consumers have been running towards the Internet since its first
coming online, there is a palpable countertrend gaining traction, whereby
consumers are resisting the always-on mentality”, says Euromonitor in the
report. Surprisingly enough, some prominent Internet companies are giving
these consumers a helping hand. Apple, for example, introduced tools to
limit screen time as part of its new operating system launched in 2018,
allowing users to see how often they check their phone, how many times they
open social media apps etc. We’re also seeing a boom in spas, retreats and
restaurants where smartphones aren’t allowed.

Key takeaway: Consumers are more deliberate and selective
in the way they interact with companies, prompting retailers to think of
more creative, less invasive ways to engage with them.

Picture: Pexels



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