2017 Marketing Trends For Retail Industry
“There’s been an evolution. Over the last three or four years, a lot of retailers have realized that online and offline are converging and they need to integrate their systems.” – Keith Anderson, VP, Strategy, Profitero.
Anderson’s first sentence above is the perfect synopsis of what has been happening in the retail industry. There’s been an evolution and, it seems it’s just started.
The large major players in the industry thrive on their purchasing power, the multi-layer distribution channels and their world-class marketing channels. On the other hands, small and medium players offering unique merchandise, build their strength around personalised customer experience and taking control of the local markets.
The retail industry is one of the drivers of the global economic. The major players in the retails are massive, multinational businesses that operate stores, supermarkets and command an enormous present on the digital media.
Today retails industry is going through a massive transformation, with IT and digital media playing a major part. Though individual personal income and corporate goodwill are the dominant drivers of demands and sales, the creativity and innovations of today’s retailers’ team is breaking new frontier and redefining what’s been the rules in the past.
From the traditional retail buying and selling models, where customers visit the seller’s outlet and make the necessary purchases, the process of buying and selling has been massively revolutionised that several layers of retail activates are juxtaposed within what is now popularly known as omnichannel to promote a seamless and tidy experience.
Traditionally, retails entail the sales of goods and services from the dealers through chains of channels designed to reach the final consumers. Today, however, retailing involves a lot of marketing and sales strategies that lay emphasis on flexibility, creativity and simplicity deploying IT-driven multifaceted and optimised steps to reach the target audience.
For clarity, let’s get into the crux of this work which seeks to investigate how retailing has evolved over time and the trends expected in 2017.
Five Undercurrents Retail Industry to Look in 2017
What challenges could the consumer product industry be facing five years from now? CPG companies can prepare themselves for a range of possible futures by harnessing technology, reinventing brands, and exploring new business models. [Source: Deloitte University]
Boost of Mobile Applications
The mobile market has been growing over the years and the shifts from traditional desktop platforms have continued to thrive. At the close of 2016, online sales through the mobile devices were said to have accounted for 37% while 56% of visits to these stores were done through the mobile devices.
Below is a screenshot from Total Retails Survey for 2016. It’s like using another set of figures to confirm what we were told earlier.
It is believed that the trend will not only continue but will, in fact, take a leap in 2017. Consequently, many online retails stores will shift their focus to developing sales platforms and applications that are compliant with mobile devices.
Expectedly, several of them are already playing around innovative mobile solutions and an example is the huge drive and innovations around click-and-collect mobile solutions, Apple Pay and Mona.
The number mobile devices currently in circulation have continued to increase. From Smartphones, IPhones, IPads, tablets and many more, the options are growing rapidly. It doesn’t seem them would be a smart option in 2017.
Social Media Driven Advertising and Sales
The massive number of social media audience and the ease of reaching large numbers of specific demographics make the social media a platform that cannot be ignored in marketing campaigns today.
The possibility of reaching your audience with precision, the luxury of carefully choosing your desired spectrums of an audience and the amazing results from social media campaigns are making social media a must use for every retailer.
In the statistics below, as given from surveys on Statista, there are close to 2 billion users on only Facebook alone with hundreds of million visitors on a monthly basis. Snapchat commands over 100 million registered users with clicks billions of video views on a daily basis.
The number goes on in billions and hundreds of millions if you consider the other platforms like Twitter, Whatsapp, Pinterest, Messenger, WeChat, Instagram, LinkedIn and many others. The depth and reach made possibly on the social media are clearly unlimited.
More Payment Options
2016 has witnessed a huge revolution in available payment options for retailers and their customers. There is embedded shopping, where buying buttons are planted on pages of the social media.
Recently, PayPal and Facebook launched an easy online payment solution for their United States audience.
Also, there are Chip and Pin credit cards that are getting more and more compliant with seamless online purchase and payment transactions.
In 2017, there will be several other social media and IT-driven payment options. Several retailing outlets will also work on further applications that will bring about mobile-friendly payment solutions to enhance instance, easy and seamless transaction.
Let me borrow a line from Jon Worley, CEO, Proximity Marketing Division, Proxama.
“We are fast approaching a place where mobile technology will offer retailers a channel that will create a perfect synergy between payments.”
Unified Online and Offline Platforms
Retailers will continue to diligently work around removing the frictions involved in shopping. This will be achieved through the convergence of physical and digital retails. Data taken online and those offline will be put to use to ensure consumers’ experiences are enhanced.
Targeted location marketing and sales will also soar as Beacon and GPS give clearer perspectives to identify and properly communicate to shoppers at the right locations.
Understanding of consumers’ behaviours will also greatly improved as more data study and analysis result to further and deeper understanding of the market and unfurls shopping behaviours and preferences.
Increased Investment against Fraud
According to a report in October 2016 by Internet Retailer, frauds prevention strategies cost e-retailers a whopping $14.6 million which represents 7.6 of their annual revenue.
Unfortunately, the number of digital fraud is expected to increase in 2017. That’s understandable. Since there will be more transactions, sales and retail activities provided through the digital platforms, more people and improve fraud will experience.
In anticipation of this and as a defence against fraudulent activities, more retailing outlets will devise strategies to combat online fraud. Expect more mega-store and retailing businesses to engage professional online security experts to protects their investments from fraud and increase customers’ confidence by making their payment solutions more secured.
Already, e-security experts are already munching the possibilities of omnichannel fraud management system which will be deploy layers of carefully monitored data to study fraud trends and abort it before it’s hatched.
Quick Mobile Delivery Solutions
Home-Office delivery services have been transforming retailing sales for decades. But it has improved and taken a new dimension of recent. Retailers are deploying online tools to do target sales and created solutions that will enhance payment, promote security and ensure warranty for the products purchased are given. Recent moves are driven at crowning these moves with quick and stress-free delivery to the customers.
In 2017, retailers will be working more on how to improve the security of home delivery services and ensure products reach the buyers within the shortest possible hours.
So, if you are a retailer, 2017 is the year for you to break even. Get on top of the coming trend, indeed they are already here, and deploy them to your favour. Now is the best time to start.