It’s a fact of life, people shop. In fact, it’s part of our DNA. Thankfully as the years have passed and technology has grown, shopping has grown too. This means there are more ways to connect with shoppers and potential customers. The only problem is deciding how best to approach the multi-channel world we live in – and how to do so without getting caught up in the content and digital noise.
Commerce is getting more Digital:
Even though digital sales are up, brick-and-mortar sales aren’t all down. Salesforce predicts 57% growth in digital sales in 2020 and 16% growth in 2021 with eMarketer data predicting a continued increase through 2025. While the future of brick-and-mortar is uncertain, online shopping is still growing at a rapid pace. As people continue to shop online, retailers will have to find ways to meet customers’ expectations.
Social selling is the practice of using social media platforms to generate leads and engage with prospective customers. According to a recent study by the Aberdeen Group, 79% of companies use social selling as part of their marketing mix. The latest Gartner Digital Commerce Survey also found that 62% of organisations are currently using social commerce either for setting up an online store or to enhance their existing presence.
In-store shopping will always be there:
In the wake of widespread panic and hysteria, two years into the pandemic in 2022, one thing was proven: brick-and-mortar retail is far from dead. Despite a decrease in foot traffic as people increasingly stay home to avoid infection (and also because many were simply bedridden), sales continued to boom for retailers who managed to keep their doors open.
Since 2015, the Omnichannel Retail Index has set the standard for omnichannel retail excellence. This year, the Index continues to evolve to keep pace with an ever-changing retail landscape. The latest edition of the Index reveals that omnichannel has become a must-have for any retailer looking to succeed in today’s competitive market. The 2019 Index revealed that while omnichannel is not always easy, it’s becoming a necessity as retailers continue to face growing competition and strive.
Quick Delivery and Commerce
The way we shop is changing—and so is the retail landscape. To meet the demand for fast fulfilment (and compete with Amazon), retailers are turning their stores into mini distribution centres. Maximising sales with this method requires accurate modelling of demand to ensure you have enough inventory to ship to stores.
Challenges in Supply Chains:
From the challenges of sourcing goods to the impact of price increases and supply shortages, there are many challenges facing the retail industry. To identify the key marketing trends in the retail industry that will shape the industry, KPMG’s Retail Institute surveyed 600 retail executives at major brands, including department stores, specialty stores and e-commerce companies.
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On the whole, retail is well positioned to take advantage of new opportunities on the supply chain, labour and inflation fronts. In addition to technology, there are also some big changes occurring in the industry that will make managing this sector a different experience than in years past. Combined, these factors should help retailers be more nimble and responsive to customer needs. That’s a positive sign for retailers looking to keep their edge in 2023.