Gears changed in early 2022 as we entered a new phase of a retail ecosystem.
picture supplied. South Africans shop from fewer retailers but spend more per trip
As the industry continues to massage pain and try to keep up with new consumer behavior patterns, new ways of doing things, “adaptability” and “an evolving mindset” have become rallying cry.
What lies beyond in this ever-changing landscape as we look to the now and the future – sees physical stores becoming critical touchpoints; how some pandemic shopping behaviors will stay here; Consumers are turning to less traditional shopping platforms like Instagram and TikTok, while retailers are exploring the metaverse.
Spend more per trip
www.mytotalretail.com believes these new ways of doing things will provide consumers with far more satisfying ways to shop, and give retailers the ability to convert shoppers into customers.
Globally stretched supply chains, supply-demand imbalances and commodity-related cost pressures as Russia invaded Ukraine pushed up inflation and put further pressure on businesses and consumers.
Despite this, economists and the National Retail Federation in the U.S. are forecasting U.S. retail sales to grow between 6% and 8% this year, according to a recent Shopify article.
Closer to home, NielsenIQ South Africa released its monthly State of the Retail Nation analysis showing that total annual retail sales in South Africa’s retail outlets were R516 billion, an annual increase of 14.4%.
“South Africans are shopping from fewer retailers but spending more per trip, with the average value of their shopping cart increasing by R131 since April 2020,” said Ged Nooy, Managing Director of NielsenIQ SA.
trends in the future
Given the expected growth forecasts and in the face of price increases and inflation worries, in order to remain competitive, the retail trade will have to adapt again in the coming year, with the following trend considerations taking center stage as of now:
- New technologies like social commerce will offer the industry new opportunities to integrate shopping carts with Facebook, Instagram and TikTok. Partner recommendations from influencers, friends and family lead to higher sales.
- An increase in online purchases, in-store pickup services, QR codes that allow shoppers to connect instantly, mobile point-of-sale systems that enable selling anywhere in-store, and a range of contactless payment options — will Data win day
- Customer centricity will come first through 2023 – essential to enable synchronization between marketing, products, supply chain and e-commerce or brick-and-mortar retail to showcase products, services and experiences that customers want and expect.
- By 2030, Africa’s 18 largest cities could have a combined purchasing power of $1.3 trillion. Companies on the coal front are already looking to invest in these markets to realize the potential they may have in 10 or even 20 years. Unlocking this potential requires strong local partnerships and a deep understanding of local markets.
- Key digital marketing trends for the South African retail industry to be aware of include – the prioritization of the omnichannel customer experience, which may not yet be fully realized; Monetizing digital efforts by tracking the entire customer journey to understand how each individual channel contributes to ecommerce conversions, and increasing the use of dark social channels where the user journey is encrypted, like Facebook Messenger and WhatsApp – where brands For example, investing in the creation of WhatsApp bots as an innovative way to reach these audiences.
Embracing new opportunities for innovative growth is undoubtedly part of any retail or commercial strategy, and trends certainly bring a fresh perspective.
No innovation without curiosity
Now that we’ve had more time to strike back operationally, I’d throw my own “left-of-center trend shapeshifter” into the mix around curiosity, because without curiosity, there can be no innovation.
When we seek new perspectives on old problems, are we really making room for curiosity as a conscious daily practice? It should become a familiar tool for retailers, brands and organizations to find out which innovative buttons to push.