Retail has been around since ancient times. The earliest evidence of trade, probably based on a barter system, goes back thousands of years. Retail has experienced an abnormal consumer reality as of late, i.e. the pandemic has shifted consumer habits more towards online shopping. In the first six months of the year, online shopping increased by 30% vs. last year. Advertisers that jump on this bandwagon will reap the harvest. In this blog, we are going to write about the developing retail behavior and also explore some of the new advertising trends in retail.
According to the U.S. Commerce Data, the web penetration for eCommerce is a staggering 18% in 2020. This new trend, albeit pandemic forced, cannot be ignored and also opens up tremendous opportunities for niche online retailers. That’s right. Amazon is not the only name in town. Niche wine and spirits online retailers have seen exceptional growth in online revenue. Adobe reported that, between March 11 and April 21 (just barely over one month!), online niche wine and spirits retailers saw an increase of 74%. Wow!
Throwing in my own brick-and-mortar bias, I can honestly say that I always enjoyed the social, tangibility, and other sensory aspects of visiting in-store retailers. I think the term is “shoppertainment”. However, here are some cons that I have experienced as I have also embraced online shopping more:
- Limited availability
- The notion of being “stuck” with one price, i.e. no quick online competitive price check
- No customization of your product of choice
- Waiting in long lines at the check-out vs. quick delivery especially with Amazon Prime for ex., i.e. expecting a fast delivery while taking care of other important daily stuff
What are some of the new advertising trends that retail can embrace to counter this eCommerce phenomenon? First, eCommerce is definitely here to stay but there are some interesting marketing trends that retailers can implement. Retailers could have scavenger hunts in their in-store experiences or incorporate augmented reality for shoppers. Another possibility would be hotel lobby pop-up stores to build brand awareness and let consumers try the products before purchase. This could be especially beneficial around the holidays. Yes, these trends would be a more post-COVID-19 implementations when people feel more apt to return to in-store shopping experiences.
What about the online trends that could be lurking around the corner? Pinterest has been at the forefront of social shopping. As Pinterest is a heavily visual social platform, consumers can click on the picture they like and instantly connect with the retailer. We believe that this “visual search” will take off. Further, we think there’s tremendous potential for online streaming platforms to “shop the look”. You see apparel in content that you would like to know more about and by clicking you are instantly connected with the retailer. Now, who doesn’t want this?
Voice search is another trend that will continue to grow for retailers. According to Google, 20% of all searches are now conducted via voice searches. It’s important that your brand is voice-search-ready and we wrote an excellent blog about “Making Your Brand Voice Search Ready“. Check it out!
Of course, apps will also become increasingly important in the consumer journey. According to eMarketer, 90% of the 25-34 age group prefers shopping from their mobile phones. In the 35-44 age group, it’s 70% and in the 45-54 group, we’re still talking about 58%. In short, a total of 59% of adults prefer shopping from mobile phones. Granted, these numbers are pandemic skewed but app shopping will most likely stick post-pandemic.
Brands need to have an omnichannel experience for shopping their products and especially prepare for the “new normal” after COVID-19. Brands need to position themselves well on social media. Instagram, Facebook, and don’t forget Pinterest, will be too important for brands to ignore. Social media has become a big part of our daily lives and brands can use social media platforms for inspiration and to connect with potential consumers. Augmented reality is an interesting and noticeable development. We promise. Soon we’ll write a blog about augmented reality so stay tuned!
For now, please be safe out there and if you can support your local retailers by going online, please do so. If you would like more information on how 4Elements Digital can help position your brand, contact us here. We all have had quite a year but things will get better and we’ll be there at the forefront to guide you. Cheers!
