The future of retail is... marketing experience
Physical retail is moving to experiential entertainment where stores become marketing experiences, letting online channels and technology power an intelligent “Retail OS”.
The future of retail will see more distinct roles for online and offline retail channels.
Physical stores become “Lifestyle Marketplaces” with high value experiences around education, community and wellness. Online channels underpin an intelligent foundation for retail operations, where technology powers fulfilment, inventory and personalisation.
In an era where people don’t have to go to stores, they have to WANT to go to stores, brand experiences become a distinct marketing activity to compete for consumer attention. Rather than just charging the consumer for products, brands and services should aim to charge for experiences, says Joe Pine, retail strategist at SXSW.
At SXSW, PSFK presented their “Future of Retail” report with 10 trends underpinning how to build an integrated retail business harnessing both online and offline channels. They present a hierarchy of consumer retail needs where convenience and access comes through eCommerce and the high value consumer needs of aspiration, belonging and community are delivered in person with a branded experience.
Through examples ranging from Selfridges “Music Matters” concert venues in the department store, through to Lululemon’s meditation spaces and even “Holorooms” provided by home renovation store Lowe’s – where consumers can see in advance how to complete their DIY jobs, we were shown how shoppers can enjoy spending time discovering brands.
This was brought to life clearly at another energetic panel including Underarmour’s Christiana DiMattesa, Director of DTC Marketing who shared examples of Underarmour’s grassroots marketing activities across the US, bringing consumers into stores to exercise and to participate in community events. Each of Underarmour’s stores now has a Community Manager to build local relationships with the community and to form partnerships that go beyond selling sports shirts.
As physical stores evolve their purpose in an integrated retail offer, DiMattesa talked about the importance of consistent and connected retail experiences between eCommerce, outlet shopping and physical stores. The goal is still to increase sales, but now repeat purchase may not mean going back to the same store. What starts in a branded experience may now convert online and repeat in an outlet in a department store. This brings a need for consumer data and shared metrics across the business like never before.
The implication for brands, and for agencies especially, is to think about creating consistent brand experiences across eCommerce and in-store experiences. Defining the nature of the relationship between the brand and consumer becomes even more important when you want to ensure that shoppers value the time they spend with you as much as they value the products they buy.