retail trends 2020

January 4 2021

Top 8 Retail trends to dominate 2021.

Retail trends 2021- Your guide to navigating 2021.

As we say adieu to one of the toughest years for the retail sector i.e. 2020; one question is on everyone’s mind i.e. What are the retail trends in 2021? How 2021 will be for the retail business?

The answer is simple, if you as a retail business owner are forward-thinking, ready to adapt to new ways of doing business then you shall thrive.

But, in case you belong to the old school of thought wherein you keep repeating what brought you success in the past then you may start counting your days…

Yes, I am being very blunt in stating the same.

Always remember Darwin’s theory of survival.

The law is relevant even after 100s of years.

“It is not the biggest or strongest that survive any kind of apocalypse but only the one who is the most adaptable to change.”

The objective of my article is to highlight key insights and trends which can guide retail business owners and help them in giving some guiding reference so that they are better equipped & can drive retail transformations in their businesses.

What must retailers do to remain popular?

1) Retail trends 2021- Experiential retail

Gone are the days when the customers expect only product and service. Today millennials and mobile-savvy customers need “experience” along with the product & service.

We are in an “experience” economy.

Brands like Nike & Ikea are experimenting with smaller shop concepts but fused with more engagement activities using technology and Artificial intelligence to drive social engagement in their stores.

Watch Nike’s digital retail transformation

In the fragrance sector, niche brands are implementing engagement tools using technology within their displays.

Watch the display stand of a perfume brand “Min New York” at Bloomingdales Dubai mall.

To learn more about the gamification of retail, click here.

2) Retail Trends 2021– “One Retail”

One of the trends in 2021, the line between digitally native retailers and brick-and-mortar stalwarts will become blurred.

There is no eCommerce or e-tail or physical brick & mortar retail but it’s going to be the “ONE RETAIL”.

Brick & Mortar retail will adapt itself to different customer touch-points.

They shall expand their sales funnel instead of depending upon the mall’s feet-ins, they shall start their customers journey from the “search” intent itself online.

Driving brand awareness online & on social media and using it as a part of their “customer acquisition” strategies.

Engaging customers with their relevant content and forming their own communities digitally.

Content marketing will be the new Oil in the experiential economy.

3) Retail trends 2021 – Use of tech products & Augmented Reality

As per a Harvard business review study,

73% of shoppers switch from channel to channel when shopping.
AR can be used to “preview” items before committing to a purchase.
60% and 55% of furniture and clothing retailers, respectively, already use AR

As already mentioned, consumers no longer distinguish between online and offline shopping.

They may start shopping in one and checkout in either.

A Harvard Business Review report disclosed that 73% of shoppers used multiple channels to discover and buy products.

Needless to say, it is mandatory for retail brands to be present on all the channels that their customers are using.

Watch the video of an AR tool by an Indian e-tailer, Lenskart.com.

This video highlights the biggest change in consumer’s buying behavior i.e. today customers try the products and check for its social proof and based on the response (likes and comments), he/she buys the product.

Technology is going to be your best friend in 2021.

4) Retail trends – Sustainability will be the driving force.

The biggest lesson 2020, has taught us is that we need to take care of our planet, our resources, and our health by adapting our urban lifestyles towards a more sustainable future.

A study from Unilever highlights the changing stance of consumers in this aspect.

21% of consumers now report that they would prefer brands with an active environmental responsibility campaign.

Retailers who are fast enough to adapt to this trend either by replacing their packaging with sustainable materials or reusing recycled bags or even producing fashion clothes and shoes from the waste materials will be in a better position to face the challenges.

Learn more about sustainable fashion, click here.

5) Retail trends 2021 – Social commerce.

In 2020, nearly 41% of customers said they were currently shopping online for things they would normally buy in-store.

Today, retailing demands a seamless User experience and User interface (UX/UI).

We saw the emergence of platforms like TikTok collaborating with Shopify, enabling Shopify eCommerce platform retailers to sell on TikTok with buy buttons.

Facebook and Instagram also launched their “shop now” tabs.

It will boost sales for retailers to sell directly on Facebook and Instagram without going through the hassles of driving traffic onto their eCommerce websites.

I had previously written a detailed article on this topic, click here to learn more.

6) Retail trends – Digital native brands to open more physical stores.

Brands like Lenskart, Glossier, Warby parker all started as digitally native brands have ventured into physical retail. As a result, excelling in their overall sales also.

These brands have developed their digital communities and now servicing them through physical stores which are more on experience and engagement.

Take the opening of the first brick-and-mortar Amazon Fresh Grocery Store in September, for example.

The Amazon Fresh grocery store is a new grocery store designed from the ground up to offer a seamless grocery shopping experience, whether customers are shopping in-store or online.

How you can apply basic marketing principles in the digital world, to learn click here.

7) Retail trends – faster Last Mile Logistics.

It seems like customer expectations for shipping times are only getting faster.

First came 2-day via the rise of Amazon Prime, then next-day, then same-day.

And now, Walmart expanding its two-hour express delivery options.

PwC reports that 88% of consumers are willing to pay for same-day or faster delivery.

From Amazon’s Prime Air — which uses drone technology to deliver shopper’s orders in 30 minutes or less — to the rise of delivery robot startups, delivery is only getting faster.

As a result, Last mile logistics will see all the excitement and investments in 2021.

This sector is about to grow exponentially.

For example, Talabat, uber eats, swiggy are all expanding their delivery systems not only to cater to food delivery or restaurant sectors but are now even delivering groceries, perfumes, and cosmetics- all within 30 mins to 1-hour duration.

To learn more about last-mile logistics, click here.

8) What products will be trending in 2021?

Apparently, Voice search and gadgets like Alexa, Echo, Google Assistant, Google Home, will be at the forefront when it comes to products.

Retailers need to adapt to this emerging trend by optimizing their eCommerce sites and SEO to adapt to voice searches that will be happening on these gadgets like echo etc.

I hope this article will help my retail fraternity with insights on the trends that will be prevalent in 2021.

In case you need any clarifications, then you can reach out to me at riteshmohan@yahoo.com

About the author:

Ritesh Mohan is a passionate retail professional with over 20 years in the Retail sector, handling some of the biggest brands in the beauty, fashion, and fragrances retail & FMCG sector. He has been instrumental in the growth of some of the regional brands as well in the Middle East region. Ritesh specializes in Retail management, Product development, and Brand Management, Retail Operations, Sales Management, and Franchising & Business Management. He strongly believes in empowering business owners with his wisdom & experience of around two decades in the industry.

Ritesh can also be followed on Instagram as @mohanritesh & on Youtube as @riteshmohan

Buy a “ Simplifying retail” book for powering your retail careers & retail stores.

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February 9 2019

Re-writing the rules of Retail….Alibaba way!!

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In my previous article, I had written about re-writing rules of retail i.e. Retail 3.0, in continuation to the same article, let me present you the case study of Alibaba.com, who has already actioned the same and milking its advantages.

“Can Middle Eastern Hypermarkets leverage technology to redefine &revitalize their business model & create a new playfield for their businesses?”

When the team at the Middle East Council of shopping centers (MECSC) asked me about my views on this question. My immediate reply was “Yes”.

However, as Einstein once quipped that “Insanity is doing the same thing over and over again and expecting a different result” holds very relevant in our region wherein we fail to see a Unique Selling Proposition (USP) amongst hypermarket players.

They all are fighting a “Me Too” game.

How many times in a week, we receive paper pamphlets from various hypermarket retailers along with the newspaper?

My objective of writing this article is to provide insights to my retail fraternity (who unfortunately still rely on pamphlets) on using the technology available by providing a case study of Alibaba who is redefining Retail in China.

Before I embark on this topic, I would like to ask few questions to Middle Eastern hypermarket giants like Carrefour, Lulu hypermarkets, Geant, Hyper Panda, Danube hypermarkets, Manuel, Spar, Nesto hypermarkets

a) How they intend to differentiate their offerings to consumers who are very well connected through the internet, who prefers researching their purchases prior to buying & convenience of shopping?

b) Have hypermarkets ever thought of business model wherein they grow their scale of operations 10X (10 times) with minimal investments?

c) How to tap unexplored territories to grow their sales & market share?

I am sure CEOs, CFOs and CIOs of these companies must have an answer to my above questions but I would like to share my learnings of studying Alibaba’s vision i.e.

“Using disruptive marketing as Growth Engine”.

Every strategist would agree with me that if you cannot defeat your competitor, then change the rules of the game and that’s what Alibaba did with the launch of their project i.e. Ling Shou Tong which means Connect Retail.

What is Connect Retail?

The basic premise of this project is to tap unexplored markets by utilizing existing Alibaba’s strengths i.e. robust supply chain, a wide array of products & vast suppliers base, efficient delivery & order processing, order fulfillment & logistics support.

Alibaba, in order to bring efficiencies into their existing businesses and using their existing strengths, has ventured into territory which has been untapped so far by the launch of Project Connect Retail.

They have adopted 100,000 small grocery stores and connected them with their integrated POS system by means of the app.

The result is that these small grocery owners could benefit from buying directly from Alibaba suppliers which provides Low Prices Everyday brand promise.

This project has created a Retail ecosystem wherein these small groceries procure directly from Alibaba thereby eliminating distributors and improving their buying margins and passing the cost benefits to end customers.

Customers stand to gain from price benefits and good quality products backed by Alibaba’s commitment.

In return, Alibaba gains wider geographical spread using their core strengths i.e. procurement, wider varieties, a large base of suppliers- all neatly knitted into logistics operations.

That’s what I call disruptive marketing or creating a different playfield thus leaving all your competitors behind.

Connect Retail app

Connect retail app provides Business Intelligence to these small groceries i.e. as to which item is selling better in their shops and how much they need to stock and how they need to merchandise or display.

In UAE alone, there is said to be over 20,000 small groceries, which may be getting serviced through various distributors currently.

Now if any Hypermarkets try to tap into these segments by providing access to their better procurement, better offers and better supply chains, this initiative would re-define these hypermarket’s market share and would leave their competitors far behind.

Basically, it is out of the box thinking approach.

Case study 2:

Again is from Hema supermarkets (cashless grocery chain of Alibaba).

Foremost priority of every retailer is to enhance its “Customer delight” component in order to retain and attract new customers.

Hema supermarkets are just doing that by leveraging technology to their advantage.

The stores offer a giant selection of fresh food, that shoppers can select and send to the kitchen to be cooked before the end of their trip.

Shoppers can order groceries online with 30 mins delivery guaranteed.

Customers use their smartphones to shop and pay for their groceries at Hema using Alipay app(payment app by Alibaba)

Everything in Hema has a barcode, which shoppers can scan to trace the product’s origin, delivery, and nutritional information.

The stores double as warehouses for online orders. Hema employees fulfill the orders by picking and packing them in reusable bags, right alongside customers.

Deliveries are shipped out to customers within 30 minutes of their initial order. Orders within 5 km of the store’s radius only are accepted for online delivery within 30 mins.

Conclusion:

The end result is that Hema supermarkets have provided a seamless shopping experience to Chinese consumers who are very much tech savvy & glued to their smartphones.

I sincerely hope that my insights and case studies would encourage the Middle Eastern hypermarket retailers to take a big leap into seamless retail which is more Phygital (physical brick & mortar and online e-commerce).

Remember

“For those who dare to dream, there is the whole new world to win”.

Reference: My article published in “Retail People” magazine.

About the author:

Ritesh Mohan is a passionate retail professional with over 20 years in the Retail sector, handling some of the biggest brands in beauty, fashion and fragrances retail & FMCG sector. Ritesh has been instrumental in the growth of some of the regional brands as well in the Middle East region. His specialization includes Retail management, Product development, and Brand Management, Retail Operations, Sales Management, and Franchising management. He strongly believes in empowering business owners with his wisdom & experience of around two decades in the industry.

December 11 2018

3 Retail Trends & Brands to watch out in 2019

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One common question that everyone keeps posting at me is “What are upcoming retail trends and brands to watch out in 2019?” . So here I am penning down my views on retail trends in 2019.

(I am taking a global perspective since there is a lot that the Middle Eastern retailers & mall owners could learn from our western counterparts).

I had earlier written about the store trends that are coming in future, in case you have missed reading that article then click here

Retail Trends

Reverse trend of online traffic diverting into the Physical store

According to Google, 75% of shoppers are more likely to visit Brick & mortar stores if they find helpful local retail information in online search results.

In fact, some of the biggest players in the industry are spending billions of dollars to remodel their existing shops, hoping to lure customers inside with more modern fixtures, easier checkout options, and online order pickup kiosks.

Today, If you ask any big brick & mortar Retailer as to who is their biggest competitor, the answer would be undoubted “Amazon.com”.

The real fact is actually that, Amazon.com is itself investing heavily in its own real estate and opening stores ranging from its cashier-less “Go” convenience shops, novelty “4 Star” locations and bookstores.

It’s also shaking up the grocery industry with its acquisition of Whole Foods, pushing companies like Kroger to think outside the box.

Those of you don’t know about retail brand Kroger then let me enlighten you by saying that Kroger is the biggest supermarket chain by revenue in the United States of America.

Customer Delight through more Immersive experience

Stores of the future will be much smaller in size and lesser in its footprints but the stores would be more Impactful and powerful with limited assortments and would provide an online experience which would carry the entire merchandise mix.

In a recent news, brands like Ikea, Target, Kohl’s and Macy’s — are shrinking their existing full-size stores or experimenting with opening up smaller-format locations in densely populated markets such as Manhattan, Los Angeles, and Chicago.

Ikea is experimenting with his new concept called “Planning studio” wherein shoppers can pick out items they want to be delivered to their homes. It will offer lower-priced shipping and delivery for city dwellers, in addition to assembly services, help with financing and a buy online & pick up in store option.

“Bounce rate” to make its entry in the Physical store

As an online retail terminology, wherein its digital marketer’s nightmare to reduce the bounce rate of their website, the same trend is seen coming into physical retail wherein brands want to engage its customers and want them to increase their dwelling times in-stores. Hence you would see the concept of cafes, lounges, and co-working spaces entering into the physical department stores.

Brands to watch out in 2019.

Walmart.

It’s my personal favorite as well.

I had written a case study in my previous article on Walmart and Innovation which forms its core DNA. Click here in case you want to know more about Walmart.

Walmart is remodeling its 500 odd stores with self-checkout kiosks, better assortment keeping the promise alive i.e. every day low prices.

The retailer has recently rolled out a new app, called “Dotcom Store,” that gives its employees the ability to order items on the spot for shoppers when they can’t find something on shelves.

That’s what I call innovation in providing its customer a reason to shop at Walmart.

Ikea

Experimenting its new concept of Omni retailing with “ Planning studios” would be an interesting thing to watch out.

The retailer is already creating waving reviews with the introduction of AI-based machine learning systems and providing a user-friendly Augmented reality app for its consumers.

Aldi

In the midst of the so-called grocery wars, discount retailer Aldi is spending $5.3 billion in the U.S. over the course of five years to build roughly 800 new stores, remodel older ones and stock shelves with new items.

By 2022 and with 2,500 locations by then, Aldi is expected to hold the title of the third-largest grocer in the country by store count, trailing only Walmart and Kroger.

Aldi’s goal is to increase fresh food in stores, selling more organic options.

Primark

I had written a case study on Primark earlier, click here to learn more.

With 161 UK-based stores, value-oriented fashion retailer Primark is driving its international store network across America and Europe, as well as investing in its customer experience and service.

I would like to end my article with a wonderful quote which is so apt in its wordings…

“The Past cannot be changed. The Future is yet in your power.”

I would like to thank all my readers’ compliments of the season and Merry Christmas.

About the author:

Ritesh Mohan is a passionate retail professional with over 20 years in the Retail sector, handling some of the biggest brands in beauty, fashion and fragrances retail & FMCG sector. He has been instrumental in the growth of some of the regional brands as well in the Middle East region. He specializes in Retail management, Product development, and Brand management, Retail Operations, Sales Management, and Franchising & Business Management. He strongly believes in empowering business owners with his wisdom & experience of around two decades in the industry.[/vc_column_text][/vc_column][/vc_row]