6 Trends For Retail in 2015

Summary

The video script explores the future of retail in the age of smart home appliances and mobile shopping, where consumption becomes unconscious and shopping transforms into entertainment and self-expression. It discusses the concept of 'experience per square foot' as a new metric for success in retail, beyond traditional sales. The script also touches on the importance of visual strategy in merchandising, the potential of audio in retail experiences, and the balance between high-tech and high-touch in customer service. It emphasizes the need for strategic use of technology to enhance customer experience without overwhelming them.

Takeaways

• 🏠 Smart home appliances are becoming capable of making purchases on our behalf, potentially leading to unconscious consumption.
• 🛍️ The concept of shopping is evolving from a utility to a form of entertainment and self-expression.
• 📈 Rachel Sheepman from 'story' suggests measuring 'experience per square foot' alongside traditional sales metrics.
• 🎨 'story' uses retail as media, reinventing its 2,000 sq ft space in Chelsea every 4 to 8 weeks like a gallery.
• 📱 The visual aspect of shopping is becoming increasingly important, especially with the rise of mobile shopping.
• 🎥 The idea of scoring retail experiences like films is proposed, with mobile apps enhancing the in-store experience.
• 📱 Mobile apps are competing for consumer attention, but there's a risk of overwhelming customers with personalized messaging.
• 📊 Technologies like heat mapping, beacons, and predictive shipping are available, but retailers must choose wisely to maintain a balance between high-tech and high-touch.
• ⚖️ There's a need for equilibrium between high-tech solutions and the human touch in retail experiences.
• 💡 Innovation in retail is not just about technology; it's also about business models, services, and experiences that serve the customer better.

Q & A

What is the concept of 'unconscious consumption' mentioned in the script?

Unconscious consumption refers to a state where people are unaware of the act of shopping itself due to appliances in their homes being connected to the internet and making purchases on their behalf. This shifts the focus from the utility of shopping to considering it as entertainment, activity, and a form of self-expression.

How does Rachel Sheepman measure the success of a retail store?

Rachel Sheepman prefers to measure the success of a retail store not only by traditional sales per square foot but also by 'experience per square foot', emphasizing the importance of customer experience in retail.

What is the concept behind the 'Story' store in Chelsea?

The 'Story' store in Chelsea operates as a concept store that uses retail as media. It reinvents its 2,000 square foot space every 4 to 8 weeks like a gallery, selling items like a store, and leverages the space for community engagement beyond just content creation and sales transactions.

What is the role of visual strategy in retail according to the script?

Visual strategy plays a crucial role in retail, especially with the increase in mobile shopping. The script suggests that brands are focusing on creating compelling visual experiences, as the picture is 'King' in the digital age, and this visual focus is now becoming part of in-store merchandising.

How does the script describe the Kate Spade Saturday store in SoHo?

The Kate Spade Saturday store in SoHo is described as a wonderful retail environment that has embraced visual trends by not only displaying them in the windows but also incorporating them on the walls, creating a visually engaging shopping experience.

What opportunities does audio represent in retail according to the script?

The script suggests that audio represents tremendous opportunities in retail, envisioning a future where the retail experience could be scored like a film, with personalized audio experiences enhancing the shopping journey as customers move through the store.

What is the concern regarding the use of mobile apps and personalized messaging in retail?

The script expresses concern that as retailers, manufacturers, and third parties compete for consumer attention with mobile apps and personalized messaging, there is a risk of impairing the overall shopping experience with incessant and potentially overwhelming messaging.

What does the script suggest about the use of technology in retail?

The script suggests that while there is a wide array of technologies available to retailers today, such as heat mapping, beacons, and predictive shipping, the smartest brands are making strategic decisions by balancing high-tech with high-touch, ensuring that technology serves the customer better without losing the human touch.

What is the significance of the 'rule of high-tech versus high touch' mentioned in the script?

The 'rule of high-tech versus high touch' refers to the need for a balance between technological advancements and personal, human interactions in retail. As technology levels increase, there is a corresponding demand for a counterbalance of personal touch to maintain a connection with the customers' humanity.

How does the script differentiate between technological innovations and other types of innovations in retail?

The script differentiates by stating that the majority of innovations involved are not technological but rather business model, service, and experience innovations. It emphasizes that the focus should be on how to serve the customer better, rather than just adopting the latest technology for its own sake.