Leading trends of the retail industry - February 2019 - Qindle
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Retail in 2019
- Leading trends of the retail industry -
February 2019
Retail in 2019
As a logical follow up of the CES in shift in consumers’ spending habits
Las Vegas, the NRF (National Retail from material to spiritual (going out
Federation) recently ran its new for dinner, traveling, etc.).
edition in New York City and it
didn’t disappoint our inspiration- Thus, we have reached a new point,
hungry innovators’ souls. The NRF, where retail’s purpose and function
another exhilarating show with have changed. Simply put, it is what
nearly 40.000 attendees and 700 shops can do for the consumer that
exhibitors felt like the perfect has shifted. Today, consumers
starting point to dive into what the expect convenience, availability and
future of the retail industry holds. flexibility from retailers who should
adapt to their hectic lives. They
While many spoke of a Retail look for excitement and status,
Apocalypse a few years back, when authenticity and social connection.
a large number of North American The line between each notion is
retail stores went bankrupt, it is thin. In sum, today’s consumer
becoming clearer and clearer that looks for a memorable experience.
we now rather are in a “Retail It is the relentless quest of meeting
Renaissance”. Some, amusingly, consumers’ needs that drives the
even call it a “Restaurant craze in the retail arena.
Renaissance” as we are witnessing a
— make it real Retail
RetailTrends
Trends2019
2019—
— 2
CES 2019
RETAIL IN 2019
1. Technology-based
experience.
2019 seems to be the year where every pole will start integrating
better, not only with each together but also into consumers’ lives.
Deployment and adoption will be smoother, and we will start
gathering strong case studies where technology proves to genuinely
support and enhance consumers everyday life, in and out of home.
Retail
RetailTrends
Trends2019
2019—
— 3
1. TECHNOLOGY-BASED EXPERIENCE
Artificial Intelligence
Artificial Intelligence (AI) has We can expect such “deep
been once more a topic of retail” to be not only a new
much discussion this year at driving force, but also a solid EXAMPLE
the NRF. But the real chatter connector with consumers. We EATYOURFEED
A few examples of companies
was focused on the could easily say that retail Eatyourfeed
embracing AI in interesting
incorporation of the Big Data brands know consumers better
ways: EatYourFeed helps
with the power of AI. For years than they know themselves! customers discover new meals
retailers have been collecting Even more so through the new based on their Instagram posts;
precious insights through a forms of data collection Wasteless offers a dynamic
myriad of sources (purchases, retailers put to work, such as pricing technology that adapts
subscriptions, social media real-time according to in-store
DNA testing (Nestlé Wellness
and market conditions;
likes and shares, impressions, Ambassador in Japan, for Bloomingdale’s latest flagship
GPS locations, etc.), but the instance). store uses AI to “provide
real value comes down to the personnel on the shop floor
use companies make of it in with instant information to
order to create higher in-store better serve and advise
engagement. customers”1 Glynn Davis,
Founder of Retail Insider.
WASTELESS Retail
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2019—
— 4
1. TECHNOLOGY-BASED EXPERIENCE
Internet of things
The IoT is moving beyond the lifestyle and routine – it goes
hype. As the connector without saying that the shop
between data, AI and itself, through a presence of its
technological apparatuses, the own, should create a full,
Internet of Things is essential unique, customer experience.
to improving both supply A textbook example of this is
chain and customer Amazon Go, who back in 2017
experience. As we will see later gave us a glimpse of the retail
on in this report, efforts are of the future – read: retail of
made towards the today – with its cashierless
implementation of supermarkets that are both
technologies with a genuine minimalistic and packed with
purpose of making the tech. A sophisticated blend
shopping process easy, which Microsoft made sure to
smooth and enjoyable; even compete with, thanks to recent
natural. The store is not meant partnerships with Walmart as
as a destination per se
well as with Kroger.
anymore, rather it is part of a
AMAZON GO Retail Trends 2019 — 5
As more and more people use For instance, while the holy
connected technologies, the grail of online retailing was
use (need?) of voice command ranking first on Google, there is
increases as well. According to now a whole new dimension to
a survey by Adobe last year it through voice assistants, as
already 30% of voice activities the customer can simply
are related with online summon Alexa with one word
purchases. This number alone and ask it to “repurchase”.
is huge, because as we get AMAZON GO
There are of course many
more and more comfortable, different valuable data that can
this way of shopping is be turned into success EXAMPLE >
completely reshaping not only measurement depending on
consumers’ behavior, but also Retailers are consistently
the retailer’s goals. A few
warned against
business revenue models2. interesting ones could be: in- introducing technology
store display engagement, with no added value. We
With that in mind, retailers will movement patterns or even the expect voice assistants to
consequently need to start offer more individualized
time spent looking at a
experiences through
rethinking the way they gauge product. One thing is for sure: behavioral and contextual
success. The good old sales per there is big potential here! data.
square foot won’t fit our
modern retail world anymore.
Retail
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Trends2019
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— 6
1. TECHNOLOGY-BASED EXPERIENCE
Virtual Reality
& Augmented
Reality
#confusedreality. The terms are often
mixed up. It is important to make the
distinction between the two however,
as their primary uses and therefore
use-cases will be different: Virtual is
mostly used recreationally, for its
complete immersiveness (thus mostly
for confirmed gamers) and
Augmented currently mostly
professionally (supporting industrial EXAMPLE
or medical trainings, which require Hololens by Microsoft: More recently we also started talking
heavy decision-making, for instance) about Mixed Reality (MR), which uses projected graphical
until further mainstream adoption. visualizations that appear to interact with the real world.
Although the latter is for now more of a concept really, we could
Because of the more real-life/social
expect it to gain momentum once the gap between virtual and
nature of the AR experience, we real translates into a relevant solution for the consumer.
would await to hear primarily about
AR developments this year.
Retail
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Trends2019
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— 7
The Trendwatching team defines stream: think display,
new-tech’s new dimensional promotional opportunities and
shopping space as a “Magic Point product placement strategies (it
of Sale”, where “the admittedly would not be surprising to see a
later than expected arrival of new type of shelf war to strike
meaningful AR experiences are soon...!).
all reframing expectations when
it comes to how, where and when Finally, with the always stronger
customers can engage with your merge between the off- and
brand”3. One of the categories we online world, stores are likely to
are the most excited to see grow reduce in size – as a result of
into this are grocery stores, logistics and digital efficiency. VR < EXAMPLE
where competition will obviously and AR will then play a great role, The world’s first invisible
be fierce. We already referenced as they offer the opportunity to pop-up store by Airwalk: by
game-changer Amazon, but the “enhance customer experiences simply using a smartphone,
competition is coming on all and create value without massive geolocation and VR, the
fronts. It is likely that we see physical investments in spaces brand virtually showcased
an ephemeral store for its
more and more AR-powered apps [which] is definitely something
limited edition relaunch of
popping into consumers’ that retailers and their one of their iconic Airwalk
smartphones to advice and customers can get excited sneakers.
escort them in their shopping about”4.
Retail
RetailTrends
Trends2019
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— 8
1. TECHNOLOGY-BASED EXPERIENCE
Phygital
Ecommerce and brick-and- omnichannel approach has got
mortar are no longer battling its own name, by retail doctor
against each other. In fact, Bob Phibbs: Phygital.
according to a Deloitte retail
INTEL
industry audit, both are Innovative perhaps, but this
growing at similar rates, with doesn’t come without its
stores contributing to almost challenges. Besides supply
half of retail’s whole growth – chain planning, retailers will
similar ratios have been face the challenge of figuring
projected for the upcoming out how to properly infuse all
years (2017-2022)5. afore mentioned technologies,
so that the store “doesn’t feel
The rightfully demanding like a lagging piece of
consumer of today expects a technology”6 nor like a
smooth blend between the disturbing data hoover7 (cf.
convenience of digital and the privacy policies).
tactility of physical. This
PHIGITAL Retail
RetailTrends
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— 9
It is clear to see that the entire industry is looking at
transformative and scalable new technologies to
improve the experience of shopping and thus satisfy
consumers’ not-so-new needs. As we will see in the
second part of this report, some retailers have decided
to adopt another approach to accommodate these
needs: Augmented Humanity . This term used by Glynn
8
Davis, founder of Retail Insider, depicts well this new
wave of retail as a service.
Retail Trends 2019 — 10RETAIL IN 2019
2. Human-based
experience.
As retailers are reinventing themselves to stay relevant, it is noticeable too
that consumers have themselves experienced some kind of shift. Millennials
(born between 1981 and 1996) are the generation of consumers that currently
has the highest purchasing power and for that reason, it is also a common
retailers’ focus-target population. It is to be noted, however, that Gen-Z is
slowly coming on the radar as their first members are now over 18 years-old.
Retail
RetailTrends
Trends2019
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— 11WEWORK
2. HUMAN-BASED EXPERIENCE
A complex consumer target
Millennials are sentimental “wellness is the new luxury”10. has moved towards well-being,
shoppers: they are the ones The recent arrival of the sharing technology will have to take a
who are willing to pay more if it economy such as Blockchain more adapted and supportive
is for a cause, the ones who and other Bitcoins, emphasizes role. This shift has completely
want to feel close to the brand this trend of experiential changed the rules of marketing.
and co-create products, the commerce, where consumers Retailers will have to pay always
tech-savvy and tech early own more with less. The modern more attention to consumers for
adopters – but only for tech consumer, indeed, now shares who they are, but this time,
with a purpose, the ones who home (Airbnb), office (WeWork), individually. The time of
feel responsible to share clustering shoppers by type,
car (Car2Go), even parking
feedback and who rely more on generation or even gender is
space (Parkatmyhouse).
peers than ads: “between over. In that sense, we have
75-80% of people up to their seen a lot of progress last year
Millennials are a very unique
30’s, will make a purchase based in the beauty industry, when
generation for they have grown
on recommendation”9. Chanel democratized makeup
up in both the analogue and
for men with its new line Boy de
digital world. As Yihyun Lin
Millennials aren’t as Chanel. This feeling of pride and
greatly put into words: “They are
materialistic as previous need of presence and self-
[…] making efforts to detox but
generations, as they value me- expression will become more
wanting the full efficiency and
time, and sharable (unique) pronounced this year and
convenience of technology”11. In
memories that will last in time: ahead. AIRBNB
other words, as the generation
Retail
RetailTrends
Trends2019
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— 122. HUMAN-BASED EXPERIENCE
The glass box effect
It doesn’t end there… Retailers will interactions are “rooted in
also have to work on themselves – empathy, genuine engagement,
perhaps even first. From this and emotional intelligence”12.
LOOP pursuit of balance between the Training and professional self-
tech and non-tech world, lies a development plans will allow
INTEL
desire to simply address reality. companies to exceed consumers
Consumers will value companies expectations.
that genuinely aspire to do good
with or through their business. As such, as mentalities evolve
towards purer synergies, turning
As we become always more transparency and long-term vision
conscious of fast and mass into an advantage will ensure
consumption’s secondary effects retailers long-lasting profits,
(intolerance towards wasteful commercially and more
practices will keep growing), it is importantly, with their own
necessary that retailers work on audience. Whole food protein bars
their structure as much as they brand RXBAR, does this
would on their brands. Inside their particularly well, employing a very
stores, this means having humanly straight to the point tone of voice.
RXBAR
empowered employees whose
Retail Trends 2019 — 13Here are some examples of alternative solutions than to
copies you would find on their create consumer change. Tom
official website: “This is our Szaki understood that well when
product.” or “1 Egg White, 27 launching Loop, a zero-waste
Peanuts, ½ Date, No B.S.” or platform partnering with A-
“Customer service – real brands to offer reusable
customer service – is one of our containers for everyday products
core values”. Although this might ranging from ice-cream to
seem risky, this “no filter” shampoo. Loop’s packaging and
approach really creates a special service makes sustainability
and trustworthy bond with the accessible to all by being as
consumer. This is a clear turning convenient AND as affordable as
point in retailer’s responsibilities standard plastic packaging.
and consumers will rely on such Sustainability is becoming
FOR DAYS
companies that help them make mainstream, however, long-term
better and more responsible adoption and purposeful impact
choices. will come only if retailers EXAMPLE
operationally think with the For Days: battling for
It is critical that companies hold consumer being at the core of responsible consumerism and
on to such inspirational role, operations. social change. This is the kind
of level of commitment
because it is easier for retailers
consumers will want to see from
to propose new eco-conscious now on.
Retail
RetailTrends
Trends2019
2019—
— 142. HUMAN-BASED EXPERIENCE
Experiential retail
We have now established that we cannot explain this better: a 56,000
are facing a somewhat square-foot store worth $43 million
sophisticated consumer. To where “the only thing you can buy
accommodate these ever-evolving […] is coffee”13. The sole point of the
requirements retailers went from a pop-up store was to [impressively]
sales mentality to a service display the brand’s latest soft- and
mentality, pushing themselves to hardware. The takeover of
ADIDAS WOMEN’S SOUL SISTERS have a more layered offer. The experience in retail is depicting
experience the customer feels while quite a futuristic image of what
shopping and while interacting with shops might look like in the not-so-
the brand and its representatives far-ahead years: we could easily see
becomes priority, because the physical stores transformed into
memory of it will be a long-lasting cured showrooms, with the simple
one and therefore more valuable. function of product introduction &
Shopping for now and with testing and market presence. This
emotions rather than wallets is example clearly shows how brick
characteristic from Millennials. and mortar and ecommerce
complete each other rather than
Last year, Samsung revealed a pop- compete with one another.
up store in Manhattan that just
SAMSUNG POP UP STORE Retail Trends 2019 — 152. HUMAN-BASED EXPERIENCE
Hyper-Accommodating
retailers
As retailers roll out seamless and speed – without that, the
business models that embrace consumer will simply shop
on- and offline technologies, elsewhere. Thus, new forms of
radical consumer expectations payment will gain traction this
emerge. According to PSFK, 54% year, such as the forementioned
of consumers expect brands to cashierless check-out of Amazon
implement change within 6 Go’s stores, but also mobile
months and 29% expect the payment (and other wearable
change to happen within one accessories: bracelets, rings,
month!14 etc.), Buy Online Pick In-Store
(BOPIS) or “Buy now, pay later”.
In that sense, two services that Adopting these services can have
have had a strong development a boosting effect on sales and
and that have become a given basket values as well.
today are: payment and delivery.
It is all about choice, flexibility
HELLO GOODNESS Retail
RetailTrends
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2019—
— 16< EXAMPLE
These brands recently brought this to
Billy Harry from Afterpay says “Giving the next level: Stella McCartney and
your customers the option to pay for its London flagship store which has
their purchase over time means they the “cleanest air of London” thanks to
can buy more of what they want its air purifiers removing airborne
pollutants and traffic fumes;
while being able to budget”15. On the
Morrisons’ “Quieter Hour” put in place
delivery topic, the craze is real: we for autistic shoppers in many stores
are now talking about super-express across UK where music is turned off,
30-minute delivery with Alibaba’s sounds are reduced and lights are
Hema supermarkets, or automated dimmed for an easier shopping
experience; Microsoft’s Xbox Adaptive
delivery vehicles like PepsiCo’s Hello Controller where both product AND
Goodness snackbot, an automated XBOX ADAPTIVE CONTROLLER
packaging are especially designed for
outdoor and self-driving robot people with disabilities.
(tracked via app) bringing you a
selection of food and beverages. ALIBABA SILICONE SCREEN OVERLAY
EXAMPLE >
Strengthening the relationship on all Alibaba’s silicone smart screen overlay
channels is vital to keep consumers helping visually impaired people to shop.
With the world’s population aging, caring
captivated and engaged with the and adapting the brand’s offer to
brand, no matter how, when or dependent people and elderly is going to
where, as long as processes are be a necessary qualitative step to take.
homogeneous.
Retail
RetailTrends
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— 17Retail in 2019
Understanding what drives really start to pay off this year
consumers and how to target with traction and engagement
them efficiently is primordial with the consumers. […] We
before going into any digital were maybe a little ahead in the
tech-development. Technology curve in starting to talk about
is meant to be used as an that, we’ve really seen it this
optimizer of internal processes year”16. Thus, 2019 will mark a
and with the goal of adding a turning point, where we won’t
real benefit to the consumer. be only talking about testing
anymore, but doing.
2019 will be an exciting year,
where we will see all these Here at Qindle, we will
different and yet compatible definitely be on the hunt for
forces come together to form an those case-studies showing off
organic and empowering offer proper tech immersion
to the consumer. As president launches and meaningful
and CEO of the NRF Matthew hyper-personalization – both of
Shay says: “We’ve seen many them with a strongly infused
investments that retailers made eco-conscious mindset.
over the past several years
— make it real Retail
RetailTrends
Trends2019
2019—
— 18
CES 2019References
1. https://www.forbes.com/sites/pamdanziger/2019/01/13/6-global-consumer-trends-and-brands-that-are-out-in-front-of-them-in-2019/#2e97fd054fe4
2. https://www.forbes.com/sites/johnkoetsier/2018/09/10/48-of-consumers-will-own-an-echo-google-home-or-homepod-by-years-end-adobe-says/#510a99677e76
3. https://trendwatching.com/quarterly/2018-05/the-future-of-retail/
4. https://www.forbes.com/sites/danielnewman/2019/01/14/top-five-digital-transformation-trends-at-nrf-2019/#41bbe83239c3
5. https://www2.deloitte.com/content/dam/insights/us/articles/4365_The-great-retail-bifurcation/DI_The-great-retail-bifurcation.pdf
6. https://www.adweek.com/digital/3-surprising-retail-trends-that-emerged-from-nrfs-big-show/
7. https://venturebeat.com/2017/08/09/walmart-will-scan-for-unhappy-shoppers-using-facial-recognition-cue-the-apocalypse/
8. https://www.slideshare.net/canvas8/consumer-trends-in-2019-42-expert-perspectives-canvas8
9. https://www.businesscornwall.co.uk/featured-posts/2019/01/guest-blog-retail-trends-in-2019/
10. https://techcrunch.com/2018/03/17/the-rise-of-experiential-commerce/
11. https://www.jwtintelligence.com/2019/01/yihyun-lim-director-mit-design-lab/
12. https://www.shopify.com/retail/retail-trends-2019
13. https://techcrunch.com/2018/03/17/the-rise-of-experiential-commerce/
14. https://www.psfk.com/report/future-of-retail-2019-report
15. https://www.vendhq.com/retail-trends-and-predictions
16. https://nrf.com/blog/state-retail-heading-2019
Retail Trends 2019 — 19Qindle — Growing business
through innovation & design
Qindle® is a Dutch innovation and design company
that operates globally within FMCG, Consumer
technology and Health industries. We are a team of
strategists, designers, and engineers with decades
of experience in enabling ambitious companies to
deliver product and brand experiences that matter
to people, build business and mind the
environment.
By combining the strength of expertise and
personality together with an effective think and
can-do mentality we always deliver on our
straightforward brand promise:
Make it Real.
— make it real Retail Trends 2019 —Thank you!
— design and innovation
Joan Muyskenweg 22
1096CJ Amsterdam
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