The retail industry – be it offline or online, has grown considerably over the years, and in 2019 stood as one of the biggest grossing and rapidly growing industries in the entire world. Even with the challenges the retail industry faces, with billions of worldwide consumers, retail has grown to become a massive player in almost every way. The enhancement and improvement of this industry have only added to the success that it has managed to achieve. The transition to e-commerce industries and online retail spaces has enabled brands to reach their maximum potential and has enabled them to sell their products to a much wider range of customers all over the world. Through the process that the retail industry has been making, there have been several trends emerging that have changed the manner in which this industry works, and which have influenced the overall development that the sector has experienced.
Top Trends In the Retail Industry
One of the first things that brands have been trying to incorporate in 2019 has been the growth of sustainability. More and more brands are trying to find ways in which they can have the least harmful impacts on the environment, and more brands are realizing the importance of incorporating their processes in a more sustainable manner.
2. Newer Store Concepts
The number of stores that are opening up is immense, making the competition all the more fierce. Stores are constantly trying to find ways in which they can come forward with newer concepts to stand out to the masses and to seem more attractive. This incorporates the entire package – right from storefronts to in house experiences. The entire experience that a customer is given has now become crucial to the success of a retail store.
3. Personalized Experiences
While the experience that a customer has is important for the success of a business, many brands are now moving in a direction wherein they offer personalized experiences. Tailoring an experience to the customer generates a sense of goodwill and makes customers feel more welcome, which is why this trend has been growing rapidly all over the world.
4. DTC Success
Direct to Consumer has been a trend that is growing rapidly all over the world. The reason for this is because of the increase in digital retail stores and e-commerce markets. Direct to customer businesses are built on the premise that the brand must have personal and direct communication with the customer to be able to help them reach their maximum interest.
5. Private Labels
Private Labels are growing more with every passing day because of the ease at which they can be set up and the access that they already have to large audiences as a result of online marketplaces. E-commerce related investments have grown considerably over the years, and more and more brands are looking to establish themselves as private companies because of the immense amount of investments that they get.
6. The Retail Apocalypse
While brick and mortar stores might have been the go-to solution for an incredibly long time, the fact remains that this is something that is experiencing somewhat of a downfall. The number of brands that are choosing to let go of their physical stores in favor of online marketplaces is enormous, which is led to something economists are now referring to as the retail apocalypse.
7. Lesser Bankruptcies
Over the last few years, several retails have declared themselves bankrupt as a result of the severe economic situation that we were in. 2019 is, however, a brilliant year for retailers because of the positive growth being experienced within this sector. Lesser number of companies have declared bankruptcy in 2019 as opposed to the previous year’s ratios.
8. Loyalty Rewards
Loyalty programs have grown in popularity and more and more brands are looking to incorporate these programs with the customers that they serve. Most brands are now offering services to customers that enable them to get access to certain privileges for a small fee, or a certain amount of purchases. These programs also offer attractive discounts, which is why it is so sought after by individuals who regularly purchase what the store has to offer.
9. Tech Shopping
E-commerce is without a doubt the go-to place for anyone who wants to shop because of the ease at which one can get access to a vast sea of brands at competitive prices. Whilst there is an enormous amount of growth within this sector, the technology that operates these e-commerce marketplaces is now smarter and more efficient than ever before.
10. Ever Growing E-commerce
The trend of developing into an e-commerce marketplace is not something that is reserved for the big names. Even smaller brands are opting to go for the e-commerce route as opposed to other options because of the wider access that they get to customer bases, because of the extensive amount of options that it opens them up to, and also the cost-effectiveness at which they can run their entire business.
Statistics For The Retail Industry
While understanding the trends that are emerging is important for anyone within the retail industry, it is also important to understand the statistics behind it. Figuring out the statistics that are important and which have the most impact can be quite daunting, especially for someone who is fairly new to this industry and who wants to understand all of its intricacies. The statistics showcased here have been gained from notable organizations that have been studying the market scenarios and trends that are making their way to mainstream retail. Here are the top ten statistics of the retail industry for 2019:
1. Preference of Brick And Mortar Stores
There is no doubt that e-commerce is the way to go when it comes to the retail industry. With the sheer amount of brands choosing to move to online marketplaces, the number of brick and mortar stores is slowly dwindling. A recent study showcased that 49% of Americans would choose to shop in a brick and mortar store, with the rest stating that they prefer to shop online.
2. Rate Of Shopping In-Store
One of the biggest reasons why people like to shop in-store is because a customer can get a feel of the product along with the ability to try it on for themselves and see how they like it. The rate of customers shopping in-store in around 56% out of which majority of them stated that the main reason for this was because of the ability to try on a piece of clothing they liked, or to get a feel of an item that they were looking to buy.
3. Decline Of Retail Stores
Over the past few months, there has been a startling decrease in the number of retail stores, and the number is decreasing at a rapid pace. During the past few months of 2019, the number of retail stores in the United States alone has decreased by an estimated 15%. Most of this percentage of retailers are doing so in favor of online stores and marketplaces.
4. Retail Stores As A Pre Trial
One of the bigger reasons why brick and mortar retail stores are still a choice for customers is because of the option to try something before buying it. Often, customers want to look and feel the product for themselves. They often want to operate this product to see if it works well for them and if it is something that they would be interested in. Nowadays, most retail stores serve as a place for customers to try something out before purchasing it online. The percentage of this is almost 50% of all customers who visit these stores.
5. Price Comparisons
A large number of brands tend to offer different prices offline and in-store when it comes to their products and this is something that affects the manner in which people shop. More than 2/3rds of customers believe in checking the prices of goods online before actually going into a store to buy them.
6. Tracking Store Traffic
Even though in-store traffic is still important to retailers, the amount of people visiting the stores is not tracked on a regular basis. About 25% of stores tend to track the number of people entering the stores and the overall store traffic. This is because most retailers don’t find this statistic relevant enough because of the decline in physical retail stores.
7. Integration Of Offline And Online Mediums
An incredible 84% percent of customers believe that retail brands should look for ways in which they can integrate offline and online mediums to provide a heightened level of service to customers. Customers want to engage with the brand more and see this as one of the best ways to enhance that service.
8. Millennial Shopping
67% of Millenials see online shopping as their preferred means to buy something rather than opting for an online store where they can see or feel the clothing. This customer audience also denotes one of the largest sections of customers for the online retail industry.
9. Rate Of Online Purchases
The rate at which Millenials shop is also worth considering when taking into account of any kind of retail statistics. Millennials spend almost 50% more time shopping online as compared to individuals belonging to Gen X.
10. Video Engagement
Delivering quality content has become vital, even for brands that want to reach audiences on a massive level. Many individuals believe that video engagement is important for a brand and 73% of customers believe that they are more likely to purchase a product of go in for a service if they see it being used in a video or see it being used by a celebrity of an influencer.
Thanks for reading "Trends That Will Transform The Retail Industry Outlook in 2020", by the Linchpin Team in Chicago, Raleigh, and Wake Forest.