Native Drop: What does the future of retail look like?
We release regular LinkedIn and Twitter content that breaks down AI and Web3 concepts and brand case studies. Here are some of the highlights from the last fortnight.
Welcome to the new subscribers who have joined us since the last newsletter! We release regular LinkedIn and Twitter posts that break down AI/Web3 concepts and brand case studies that are likely to drive mainstream adoption. Here are some of the recent highlights that you may have missed:
Salesforce has just released its Connected Shoppers Report, highlighting the key trends shaping the future of retail. Here are my thoughts:
Trend 1: Shopping journeys are getting more complex with the variety of channels continuing to increase
There has been an acceleration of “shopping at the edge,” where consumers start and complete the shopping journey outside of a brand’s physical and digital spaces. Brands must develop one-on-one relationships with consumers across platforms to remain relevant.
Here’s where I think brands can leverage NFTs to build hyper-engaged communities that turn passive customers into active participants, as we’ve seen with brands like Nike and Lacoste.
Trend 2: The store goes digital
Shoppers are blurring the lines between digital and physical channels while in store - 33% of shoppers have researched products online via mobile while in store and 25% have scanned a QR code to learn more about a product.
As spatial computing tech continues to mature, I think we’re going to see more brands integrate high-tech touch points (e.g. augmented reality filters) within their in-store experiences to improve customer convenience and satisfaction. Brands like IKEA, Mercedes-Benz and Sephora are already pioneering in this space.
Trend 3: The loyalty game reaches a new level
While points-based loyalty programs are the most popular today, younger generations are craving experiential programs that instill a genuine connection with brands. Millennials and Gen Z customers value exclusive access to limited products 2x more than Baby Boomers when it comes to loyalty programs.
I believe token-gated loyalty programs and experiences can unlock exclusive perks for members, while building brand affinity, collecting feedback and delivering specific offers that customers actually want. Check out what we’re doing at INSIDER!
Trend 4: Retailers and brands accelerate unified shopping experiences
While 66% of customers want personalised experiences, only 32% of retail executives say they have the full ability to turn data into personalised offers in real time. Why? The average retail org uses ~44 different systems to engage customers across touch points.
With GenAI, marketers can now more easily create bespoke customer experiences, by leveraging detailed data. E.g. Kering, the luxury group that owns Gucci, recently introduced a ChatGPT-based personal shopper to assist customers in providing tailored product recommendations.
What do you think? Find a link to the report here.
Find the post here.
Could immersive, virtual worlds soon become the norm for e-commerce? Brands like L’Occitane and Ralph Lauren think so. Here’s why:
L’Occitane:
Last month, L’Occitane launched a virtual store experience, to provide customers with a new dimension to explore and rediscover its products.
Within the virtual experience, visitors could explore L’Occitane’s signature scents. The store also integrated a shopping experience that enables users to browse through virtual products, read detailed descriptions, and make purchases directly.
Ralph Lauren:
Coinciding with the launch of its new ‘RL 888’ handbag, this week Ralph Lauren has unveiled its digital exhibition space named The 888 House.
Visitors can access the virtual world, navigating through different virtual spaces that showcase pieces from the recent collection.
Here are two instances of consumer brands embracing the spatial internet trend, which could soon become the norm for e-commerce: an immersive shopping in a virtual 3D brand world, accessible through desktop and mobile (and eventually via Vision Pro headsets).
These retail initiatives don't just mimic offline stores; they introduce a fresh approach centred on storytelling, experiential elements, experimentation, and fostering a sense of community.
For Consumers: 3D online retail enables personalised commerce with avatar design, gamified activities, socialising, and receiving product recommendations tailored to their preferences.
For Brands: Meta-commerce can help gather valuable data on a brand’s performance. Insights from these virtual experiences can highlight what’s selling well, the dominant buyer demographic, the length of time shoppers spend in these arenas, and a consumers’ unique preferences. This can help brands tailor offerings to individuals, and inform future products.
What do you think?
Find the post here.
Brands like Claire’s, Forever21 and Walmart have all recently created immersive retail experiences within gaming platform, Roblox. Here’s what they’re doing and why:
Claire’s:
Claire's, the global accessories brand, is offering customers the chance to buy and design limited-edition digital wearables and avatars within Roblox. These digital wearables may later be introduced as purchasable items in Claire's physical stores.
Chris Duncan, Claire's VP of Digital Marketing, sees this expansion into Roblox as a way to extend the brand's intellectual property into virtual fashion and content, with plans to create "phygital" (physical and digital) experiences for Generation Z and Alpha. This aligns with Claire's broader strategy to connect, engage, and cultivate its younger fanbases in new ways.
Forever21:
Prior to the Barbie movie release in July, Forever 21 launched an AI-designed version of the physical Barbie capsule collection, in Roblox.
The virtual collection mirrored the in-store assortment and offered metaverse-exclusive Forever 21 x Barbie designs. Customers could also access an immersive experience that allowed them to build and operate their own fashion stores.
According to Jacob Hawkins, CMO at Forever 21, beyond social games they’ve been using Roblox as a testing ground to better understand what customers want in their products.
Walmart:
Walmart has launched "Supercampus" in Roblox, an interactive back-to-school retail experience targeting young consumers. The experience enables customers to participate in a series of challenges with other players, and is built popular brands including BIC, Crayola and 3M.
According to the brand, Walmart is aiming to create engaging experiences for younger customers; and now exploring how to do that in the virtual worlds where they are spending more of their time.
Why Roblox?
As of May 2023, Roblox had over 66 million daily active users, 60% of whom are Gen Z. In the past, Gucci leveraged Roblox to create a digital / permanent flagship experience, Gucci Garden, which saw 20 million visitors.
According to Forbes, hyper-connected customers like Gen Z and Alpha, prefer not to have to go back to traditional web or e-commerce experiences. They want forward-moving experiences that are intuitive, experiential, and immersive like those they have in their favourite worlds.
Brands are using Roblox to appeal to younger and inherently digital consumers, while gathering consumer insights that will inform engagement, and digital and physical asset creation.
What do you think?
Find the post here.
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