The retail industry is undergoing a sea of change, which means that in 2022 we could be looking at an entirely new world of shopping. From eCommerce businesses to brick-and-mortar stores, shopping will continue to evolve over the next decade as more players enter the market and the world learns from the pandemic lessons. But what changes can we expect? What are some of the new frontiers in retail? And how will they affect consumer behaviour?
In this article, get the scoop on what you can expect and what will be In and Out in 2022.
Trends shaping the future of retail
1. The desire for online shopping will expand
The desire for online shopping will expand, alongside the use of different platforms to make purchases, such as mobiles and apps. All generations of shoppers will have the means to digitise their purchases as merchants continue to expand their online offerings. Mobile-First Indexing is also a very notable development, especially for an eCommerce business, as we are already seeing companies focusing on serving their customers based on their location and device.
2. Online shopping will disrupt and finally replace physical retail
Online shopping will disrupt and finally replace physical retail. This might not exactly happen by the end of this year, but eCommerce businesses know that customers want to see, touch, hear and even smell the products they’re buying online. Because of this, it won’t be long before they find a solution to bring this experience to the customer’s home. Most clients visiting a physical store no longer feel like they’re in a special place. Instead, they will become part of a community where they will discover all the products they’re eager to buy offline. According to a Q2 2021 study of 2000 UK consumers conducted by Supercharged Commerce, 70% of product discoveries now occur online, but 12% still occur in brick-and-mortar stores.
3. Brick and mortar stores will evolve
To compete with eCommerce businesses, brick and mortar stores will evolve to meet consumer needs better. Some of the biggest names in retail are already testing out new concepts that take advantage of technology in new and exciting ways. Devices like Amazon Echo and Google Home put existing products into smart surroundings, allowing shoppers to select different items and complete purchase journeys with minimal interaction. In this volatile market, partnerships for brick and mortar stores will be crucial for growth: retailers will join forces with direct-to-consumer brands, which are eager to establish themselves in the marketplace.
4. Payment options like the Google Pay app for mobile and contactless payments will continue to be the top choices for consumers
The contactless payments that require card readers are not going anywhere in 2022, and no-touch payment technologies are also becoming more popular in other contexts due to the popularity of digital wallets. Additionally, QR codes opened up a whole new world of possibilities for contactless payments, and virtual payments have never been easier.
5. Sustainability will be the focus of retail as consumers
Sustainability will be the focus of retail as consumers are supporting the “reusing economy” and buying environmentally sustainable products. Large retailers are already setting up buyback programs, and consumers are already enjoying the lower price of items and the uniqueness of the products.
6. Returns will make a difference
According to Forrester, three in five French, British, and US online adults prefer retailers that provide free return shipping and two out of five prefer retailers that refund in the form of their original payment. When it comes to returns for online purchases, consumers have been more fearful and some even discouraged from shopping online because of poor return processes.
7. Retailers will compete with large marketplaces
Retailers will compete with large marketplaces by investing in tech. To keep customers from using marketplaces and coming back for more, eCommerce businesses will prioritize direct customer relationships and better shopping experiences. They will invest in the backend tech that supports a smooth customer experience: order management, payment processing and inventory control.
8. Consumers will become unresponsive to traditional marketing
75% of automated, personalised engagement efforts do not achieve desired ROI goals due to insufficient buyer insight, according to Forrester. To address this, customer-centricity needs to be embedded into B2B marketing planning and execution processes.
The future is now
To address these emerging trends, this year, retailers are rolling out new technology and improving their sales tactics, hoping to provide consumers with an experience that goes beyond a simple sale. As we move forward in 2022, are you prepared for what’s coming?
