Meanwhile, they are taking on a central role in retail, and shaping the industry’s foreseeable future.

Gen Zs are Less loyal, Require More to Keep Buying from the Same Retailers

Raised to be critical thinkers and action takers, many Gen Zers aren’t loyal to a single brand. “Only 16% shop at a single store for clothing,” for example, reports Accenture. To stick around, they need great experiences, great pricing, product availability, fast shipping, and for the brand to align with their values. But more on values in a bit.

Meanwhile, brands must understand that checking all the boxes now might get them an initial purchase, yet no longer guarantees long time loyalty. Gen Zers are coming of age in the most affluent time, with so many alternatives and new trends showing up on their feeds 24/7, a click of a button away.

They’re also coming of age during “cancel culture,” where making mistakes is public and, sometimes, exposes brands to the unforgiving nature of going viral.

Do Your Values Match Theirs?

One of the biggest consistencies in Gen Z studies over the past several year has been their passion for making the world a better place. They want their jobs to make a difference, they volunteer and drive change in their own families, and they understand the financial impact of who they spend their money with.

Brands can’t just talk the talk to earn that money. In the age of social media transparency and easy access to information, brands must make authentic, consistent steps toward reducing their footprints and increasing diversity, equity and inclusion in both their corporations and the representations they create in their marketing efforts.

Gen Zers Want Higher Quality Goods, But Also Shop Second Hand

Gen Zers know that, in today’s abundant retail world, there’s a brand out there that offers a high quality version of the product they want – and over one in five is willing to pay extra for it, according to Vogue Business. However, interestingly, Vogue Business also points out that over one in four is actually likelier to shop second hand.

Some Gen Zers are financially savvy and looking to save, and others are just entering adulthood and can’t yet afford their preferred high quality goods and shopping habits. That said, it looks like many of their decisions to shop second hand are driven by a greater awareness of the global climate crisis than previous generations, as well as a greater belief that they can do something about it. Brands can, of course, tap into this strong need for sustainability in many aspects of product creation, packaging and shipping.

Gen Zers Like Shopping In-Store, But Only if it Means Getting an Omnichannel, Digital Experience

This might be the biggest surprise about Gen Z. The digital natives, who were born into a mobile, omnichannel environment, where information and satisfaction is merely a few instant clicks away… like to go into brick and mortar stores to do at least some of their shopping.

Yet unlike other generations, going into a brick and mortar store just to pick out an outfit doesn’t make them happy. They’re willing to do it only to be immersed in interactive experiences that are tailored to their specific needs.

They expect digital, technologically advanced experiences, even in stores. They want sales associates who recognize them, who offer the products that matter to them, including those that would emphasize their uniqueness most, and the ability to continue building the bond with the brand even when they leave the store.

Gen Zers Prefer Influencer Marketing for Product Recommendations

Generations Zs spend a lot of time on social media. They’re there for several hours every day, discovering brands and trends, and following everyday folks turning into influencers. They’re critical thinkers, and some don’t trust influencers at all, but if an influencer does win their trust, they don’t necessarily scroll away when she or he shares a sponsored post. When the trust is there, the sponsored post can feel customized and authentic, not a generic, polished ad like other generations had to settle for. More importantly, they assume that the influencer has done her or his research, and will tell them the truth. Thus becoming their trusted source for product recommendations.

That’s because influencers, while sometimes showcasing perfectly-looking highlight reels of their lives on social media, often share their raw emotions, challenges and failures as well. It feels like there’s a personal relationship between the influencer and the audience member, like the viewer knows the influencer on a deeper level than they might know people in their real lives.

Therefore, they are likely to purchase products from sponsored posts and videos, even though they know they’re basically watching an ad.

Consistently Win Gen Zers’ Hearts to Create Retail Magic

As Gen Zers’ buying power keeps growing, retailers must grow with it. This isn’t the generation to wow once and enjoy the ROI forever. This is a generation that’s looking for constant innovation and customization, be it in your stores or in your marketing.

It’s a generation that’s looking to make smart purchase decisions. They want to save money, but are simultaneously willing to pay extra for high quality products… especially when their purchase makes a bigger difference – as in, when it puts money in the hands of brands that act on Gen Zers’ values, and use that money to drive positive change in the world.

They won’t keep buying from you just because they bought from you before, but when you consistently show up to serve their needs and delight them, they’ll consciously choose your brand over and over again.

As a retail professional, when someone asks you about the state of the industry the first thing that might pop into your mind is how the pandemic accelerated ecommerce growth. We’ve all seen the headlines, read the studies, and experienced it firsthand in our companies.

But underneath the surface, brick and mortar stores have grown more relevant than ever. 90% of retail sales were expected to be generated through local stores in 2021. Then, as retailers planned their 2022, they set out “to open more stores than they close for the first time since 2017,” reports the Wall Street Journal. Ecommerce-only online shops are joining the party, and opening brick and mortar stores, so they don’t stay behind.

Let’s explore the reasons behind this turn of events.

Customers Want Deeper Experiences 

Don’t get us wrong – the love of convenience, access and possibility that shopping online provides is pretty great. More customers experimented with it during lockdowns and learned the benefits are worth the habit change. But many crave to combine this convenience with more immersive experiences at a physical storefront.

The Desire for Human Connection is Greater than Ever

For some, the pandemic locked them in their homes with a lot of people, and alone time is all they crave now. But for many others, whether they live alone or not, it locked them away from family members, friends, colleagues, and other day to day interactions out in the world, which they used to take for granted.

Over one in three survey respondents said they felt lonely almost all the time, or at least frequently, reports the Harvard Gazette, adding that 61% of Gen Zers “reported high levels” of loneliness.

Customers have longed to return to brick and mortar locations, to feel the physical presence of what life used to be like, to communicate with sales associates and fellow customers, and add lightheartedness back into their life.

Yet as they do that, they’re not really seeking to go back to what used to be. Their need is stronger than ever for immersive experiences at a physical store that sweep them off their feet.

Customers Want Customized Omnichannel Experiences

Customers’ desire for an omnichannel experience isn’t new, but it’s growing more essential as the years go by. Like we said, they want the convenience of ecommerce sales, but they also want the shopping experience of touching the products themselves, trying them on, seeing colors in person, and taking the products home instantly.

As they enter the brick and mortar store to do that today, being an anonymized entity that no one on the team recognizes feels outdated. Customers want the contemporary brick and mortar experience, partially because smart retailers have implemented technology that recognizes them, their preferences and their history with the brand the moment they enter the store. They get the convenience of ecommerce with the human connection and immersive experiences, as sales associates know exactly which products to recommend to them, smart mirrors add their “maybe” products to their online wish lists, and mobile POS systems enable them to check out seamlessly, without waiting in lines.

The Cost Effectiveness of Ecommerce isn’t So Obvious Anymore

One of the biggest arguments for an ecommerce-only business is its cost effectiveness – no need to pay rent and store maintenance fees, no need to train sales associates over and over again as industry turnover rates remain high… you name it.

But when retailers look at the numbers more thoroughly, they realize it’s not necessarily the most cost effective choice anymore.

The Costs of Ecommerce Customer Acquisition Have Skyrocketed

Often, the argument is that you need a brick and mortar store at a prime location – say, a high traffic mall – to simplify your reach. Even customers who never intended to enter your store, or never even heard of your brand, might do so when they see something in your window as they head to get ice cream at the mall. But prime locations cost a lot of money. It’s much cheaper to set up a website, run some ads, operate some digital marketing and social media profiles and… magic.

And maybe it used to be like this, but as more and more brands have gone online, ecommerce-first companies started seeing ad rates spike up big time. Social media management costs have gone up, too, as it became an actual profession – not to mention the costs of influencer marketing. Some ecommerce-first companies realized it might just be cheaper, and generate a higher ROI, to add an offline channel.

The Costs of Processing Returned Products are So High, Retailers Prefer to Refund Customers Without Getting Products Back

The convenience of ecommerce shopping has also made it easy to return products, especially as retailers compete on high standards of free and fast shipping, alongside free and easy returns.

When customers buy products online, they can’t know for sure what these products will end up being like. Maybe the color ends up being off, maybe the product doesn’t do what they hoped it would do. Sometimes, customers like to plan ahead for mishaps. They order the same product in multiple sizes, then send back what doesn’t fit, for example.

Whatever the reason might be, retailers lose $1 trillion a year from returned products – $90 billion of which are likely to reach landfills instead of getting back on websites or shelves. Processing returned items is so expensive, that some retailers provide refunds without requiring products get sent back. And yes, the majority of the problem is created online. “Shoppers return, on average, 15-30% of online purchases. That’s compared with a return rate of about 13% for shoppers at bricks and mortar stores,” reports CNBC.

Source: Oporto via CBRE

The New Golden Age of Brick and Mortar Stores

Turns out the pandemic has accelerated the need for digital experiences, but as integrated parts of the human to human “in real life” experiences. Retailers who are savvy enough to offer holistic, omnichannel shopping that immerses customers in technology-advanced, personalized journeys will be the ones to enjoy this new golden age of brick and mortar stores.

Check out this article on immersive in-store experiences to get inspired, and start strategizing what’s possible for your brand.

You survived 2020. You did your best to keep spirits and sales up in 2021. Then 2022 arrived, and the pandemic is still going strong. It can be discouraging, no doubt, but there’s also an abundance of opportunities to differentiate your company and show customers which brand cares about them most during this time.

What Differentiates Retail Superstars During the Pandemic

“The retail sector outperformed many industries, but the gap between sector leaders and laggards has grown,” reports McKinsey. In the US, five retailers “generated more than 80% of all the [retail] value,” while in China “four players drove a staggering 98% of gains,” it adds.

According to McKinsey, these companies belong to four categories:

=> Home economy, because many people used their quarantine time to upgrade their homes.

=> Value retailers, because consumers were more mindful of their finances as nothing felt certain.

=> Online specialists, because even people who were used to shopping in-store started shopping online during lockdowns and afterwards, trying to stay safe. In May 2020, two months after the World Health Organization declared COVID to be a pandemic, “US ecommerce spending grew by 93% year over year… More money was spent online in the US between April and May than the last 12 Cyber Mondays combined,” reported a MasterCard study.

=> Platform players, because a diverse business model that went beyond retail, to cover supply chains and advanced technology, or at least had a strong integrated ecosystem, drew investors.

How Retailers Can Succeed Online in the Era of COVID

As mentioned above, eCommerce usage accelerated during the pandemic. But you’re in retail, so you probably already knew that. The question then becomes how to create digital experiences that matter to customers.

Personalized Ecommerce Experiences for Everyone

Here are a few ideas to differentiate your eCommerce experience beyond great visuals and product descriptions:

=> Accessibility: 1 in 4 US adults manages “a disability that impacts major life activities,” according to the Centers for Disease Control and Prevention (CDC). Only 1-3 of every 10 websites comply with accessibility regulations, according to accessiBe, who studied 10 million pages. These are the “percentage[s] of all pages scanned that failed to comply with the requirements for menus, images, pop-ups and so on,” it explains about the following graph. By serving these needs, your company can easily stand out.

Source: accessiBe

=> Personalized omnichannel experiences: Customers are everywhere, and wherever they go, they want to feel like they’re continuing the journey they started with you. First, enable customers to buy and get customer service wherever they want – your website, chat, email and social media channels (alongside your store and contact center, of course). Second, ensure these don’t feel like fragmented experiences. Customers need to feel like they’re talking to the same person, with the same brand characteristics, who already knows their entire history with your company every single time they connect with you.

=> Easy checkout: Give customers a variety of options to take control of their own checkout experiences. Allow them to buy directly on the product page, directly on social media, with one click when they go to their cart, etc. Don’t require sign ups or log ins that draw out the process unnecessarily. Instead, consider rewarding them for signing up or logging in. The reward can be activated in the current purchase, or be saved for next time.

When Customers Order Online and Pick Up Offline

Whether they opt for a curbside pickup or an in-store pickup, the experience customers have as they head to get their products is essential to their feelings about your brand.

=> Real-time inventory updates: Verify you have the technology you need to keep up with inventory management across locations. Update it in real-time, so what customers see online is what’s actually available to pick up in their nearest location. This is important in eCommerce too, but even more so when customers make the effort to pick up products themselves.

=> Pickup convenience: Allow customers to choose their most convenient pick up time, and provide alternatives ahead of time if products they want are missing after all. For example, offer other products they can get instead, or let them know which branch does have what they want. In addition, if you offer a pickup window (say, from 5 to 8 PM), make it easy for them to check in a bit before arriving, so you can verify you get their order prepared before they arrive.

Immersive, Personalized In-Store Experiences Matter More than Ever

Ecommerce might be what everyone is talking about, but retailers that want to keep thriving can’t forget that many customers still want to come into stores, try products out, and experience some human connection. Here are some key aspects of an immersive in-store experience.

=> Location data: Understanding customer preferences across your different branches can help you tailor experiences to each customer segment’s needs. Therefore, analyze foot traffic, demographics, psychographics and buying behaviors in each location before proceeding with strategy planning.

=> Localized experiences: As more companies expand internationally, keep in mind that each country and region has its own culture and shopping behaviors. Partner with consultants or technology vendors that can help you get to know your different target audiences, so that the shopping experiences you provide feel seamless to their everyday lives. Alternatively, if you decide to stand out by emphasizing aspects of your own culture, do so intentionally and sensitively, taking your audience’s culture into consideration.

=> Personalized clienteling: Some app products let you recognize who’s entering your store, so you can know what they need before they tell you – or at least understand their history with your company, so you can customize recommendations. It will also make it easier for you to continue nurturing the relationship once customers leave the store. Sales associates will be able to keep track of customers’ desired products and alert them when these products, or others that they might like, are in stock.

=> Blend two worlds: In our article about immersive in-store examples, we covered a brand that blended luxury fashion with arcades to surprise and delight its customers. In another example, we covered a smart dressing room mirror. Among others, the mirror allows customers to request that sales associates bring different sizes to their dressing room, imitate different room atmospheres to verify the outfit fits the occasion, and with the help of additional technology, add in-store items to their online wish lists.

Step Up Your Technology to Give Customers What They Actually Need

Customer experiences that stand out are all about humanizing the brand-customer relationships with the help of smart technology that scales them to the next level. Following are some great technology advancements that can help you do that.

=> Mobile POS: A mobile POS lets you exchange long lines with efficient, personalized experiences, because you can finalize customers’ purchases anywhere in the store. Plus, often, mobile POS systems give you access to customer data, so you can recognize loyal customers, make personalized product recommendations, and figure out how they can get products that aren’t currently in stock in the specific branch they’re visiting.

=> RFID: Usage of RFID readers and tags is one of the key retail trends this year. Using this technology, you can automatically scan customers’ in-store carts during checkout, then verify they paid for everything when they walk out the store. Back in the warehouse, you can scan your inventory, to easily keep track of which products are shipping, what you have in stock, and what requires ordering.

=> Connect everything with data: According to an Oracle and Forrester study, 75% of marketers and advertisers believe that customer engagement data is important for improving customer experiences. In addition, companies that use customer data platforms (CDPs) “effectively are 2.5 times more likely to increase customer lifetime value.” However, the study also revealed that “only 11% of brands can effectively use customer data.” Make this year the year you finally prioritize data collection, analysis and usage, and you’ll find it easier to give your customers what they actually need.

Only 11% of firms can effectively use a wide variety of data types in a unified customer profile.

Source: Oracle & Forrester

What Happens After the Purchase is Just as Critical as Generating Sales

We’re all about celebrating every part of the process, yet once you’re done celebrating the next sale, verify the sales cycle is actually completed in a way that encourages repeat purchases and advocacy.

=> Last mile experience: All the hard work you’re putting into nurturing great relationships with your customers can disappear in a heartbeat when packages aren’t delivered, when service by delivery employees is far from outstanding, or when there are unexpected surprises at delivery (like extra charges that weren’t explained during the purchase). The solution is to invest in your last mile technology and employees. Remember that last mile employees are often paid and appreciated very little. Show them you care about their wellbeing, so that they’ll carry that care toward your customers.

=> Returns experience: As much as we wish every customer will love every purchase, product returns are part of doing business. Almost every single customer will buy from you again if you provide a great return experience. Therefore, it’s critical to look at the entire lifetime value of the customer and not just the current purchase.

As Always, it’s About Putting Customers’ Needs First

The pandemic brought in a wide variety of challenges – lockdowns, quarantine, increased health risks, vastly changing customer behavior and preferences, and… it’s still not over. As you train your team and choose new technologies to implement, remember that one thing will likely never change:

Retail brands that stand out are retail brands that stay open to adapting with changing times, as they wholeheartedly put customers’ needs first. When you authentically put customers’ needs first, they feel it, they come back and they tell their friends.

Let’s say you live in a very summer-filled place. We’ll call it Florida. But you crave snow. So you log into the metaverse and immerse yourself in snow-related experiences. You go skiing with friends who live in Spain, but connect with you online. You cuddle with a loved one by the fireplace. Or maybe you have some “me time” in the virtual outdoors, looking around in wonder as snow falls over you.

Well, on your avatar, but hey, you’ll take it.

Then you realize your avatar needs warmer clothes, so you click a button and buy some, contributing to the $40 billion a year market of skin games, AKA clothes and other items that upgrade avatars’ looks.

But you feel like buying yourself some winter clothes too. So you click another button and get it delivered to your offline home. Or you order some hot cocoa or soup from a nearby, real life restaurant, turn on the air conditioner at home, and watch a Broadway musical or fashion show that’s happening in New York City in real time… on the snow.

The metaverse, said to be the next version of the internet, happens in parallel to real life, and continues changing even when you log off. It keeps gaining in popularity, with AR and VR headset sales increasing by 56% from 2017 to 2021, and smart retailers are already immersing themselves in it, creating innovative experiences for their customers.

Gucci Organizes a Virtual Exhibition and Proves Metaverse Profitability for Retail Brands

To celebrate its 100th anniversary, Gucci created a virtual exhibition of art installations. Called Gucci Garden, it was based on a real life, multimedia experience in Italy.

As users entered the virtual exhibition, their metaverse avatars transformed into genderless mannequins to provide them with a blank canvas for creation. They wandered through a variety of themed rooms, whose design and virtual elements were inspired by past brand campaigns and collections. As they wandered through the rooms, they retained different aspects of the exhibit on their avatar bodies. In part, they did so by trying on and purchasing virtual products.

Since each visitor entered the exhibit from a different room, wandered through the rooms in a different order, and tried different products, each visitor left the exhibit looking unique, just as they are uniquely themselves in real life.

This is only one of the experiences Gucci has created in the metaverse. Among others, it has proven the metaverse profitability to retail brands by selling virtual products, including $12.99 sneakers and a $4,000 handbag. The virtual handbag was later resold for $25,000.

Burberry Designs a Game Heroine’s Outfits, Then Sells Them to Consumers

Product placement in the media has been going on at least since the 1920s. This strategy embeds products seamlessly in ongoing stories, such as a character that happens to drink Coca Cola while she’s already at a restaurant. According to a 2019 study, “prominent product placement activities – especially verbal placements – are associated with increases in both online conversations and web traffic for the brand.”

In 2021, Burberry took this strategy to the virtual world. It designed two outfits for the protagonist of the Honor of Kings game. The outfits included Burberry’s logo, so gamers were able to identify the brand. They could then search for these outfits online or in Burberry’s brick and mortar stores… and buy them for themselves.

Louis Vuitton Creates a Virtual Game that’s Basically a Brand History Course

Louis Vuitton also ventured into gaming, but it actually created its own game. To celebrate its 200th anniversary, it introduced Vivienne, the game’s protagonist, who travels across the virtual globe in an attempt to find 200 birthday NFT candles. Players who join her can collect NFT candles and unique accessories themselves, and even win some awards.

But what’s that got to do with the brand?

Each NFT candle Vivienne finds during the game unveils milestones of the Louis Vuitton story. Kinda like a gamified brand history course.

Introducing Louis The Game. Join Vivienne in collecting 200 birthday candles as she retraces #LouisVuitton’s story over two centuries and try to find one of the 30 precious NFTs. Discover the new game in honor of #LOUIS200 at https://t.co/5vpMF3AQDy pic.twitter.com/tpAM5rZhjR

— Louis Vuitton (@LouisVuitton) August 10, 2021

Dyson Lets Consumers Virtually Style Their Hair So They Can Find the Perfect Product Fit

Browsing the metaverse and feeling the need to style your hair? If you’re immersed in the Oculus environment created by Meta (AKA Facebook), you can do just that. When you log into Dyson’s virtual store, you can use its VR demo to virtually try out the company’s hair products on a variety of hair types, and see which one is best for you. You can also look inside the products and understand the technology that makes them work.

Looks like Dyson might be introducing a similar experience for its vacuum cleaners later on. If only virtual vacuuming got our actual houses clean, right?

Nike Connects the Real and Virtual World with Physical Activity

Nike acquired RTFKT, a company that sells digital collectibles in the metaverse, including digital sneakers that cost $70,000 a pair. Behind the scenes, Nike has been filing trademark applications as it advances toward selling a variety of digital products in the metaverse.

Meanwhile, it created its own metaverse studio and launched Nikeland on the Roblox platform. Nikeland, which was designed based on the brand’s offline headquarters, allows visitors to choose their avatars, then dress them in Nike clothes and shoes. Visitors can play multiple existing sports games together, or create their own using interactive sports elements. But Nike doesn’t want you to solely exercise virtually, so when you exercise in real life – say, run or jump – you add a layer of movement to the game on the screen, and could get rewarded for it, too.

To blend the two worlds further, visitors to Nike’s New York store can enjoy augmented reality that gives them a sense that they’re actually in Nikeland.

Taking Baby Steps into the Metaverse

If your team isn’t immersed in the metaverse and doesn’t know what great virtual experiences feel like, the best place to get started is by exploration. Have them explore both retail experiences and environments from different industries, so they can gain inspiration from a variety of sources instead of trying to recreate the brick and mortar feel.

In addition, check in with your audience members:

=> Have they heard of the metaverse?

=> What do they love most about it?

=> What do they least enjoy?

=> What would they want from a metaverse retail experience?

That said, don’t dismiss the metaverse if your audience isn’t that into it yet. This is still a growing space, and there’s bound to be some resistance, as with any new technological advancement. You can still take steps forward to make sure you won’t be left behind in a few years. For example, you could create immersive experiences for them in your stores, using AR, VR and smart mirrors (click here for some examples of interactive in-store experiences [link to the article once it gets published]). This way, when your customers are ready for the next step, they’ll want to experience it with you, not with your competitors.

We’ve all heard that online is here to stay. The pandemic has indeed accelerated ecommerce growth and established new buying habits. But according to a 2021 study by Raydiant, approximately half of consumers have enjoyed going back to brick and mortar stores. They “spent more than 51% of their shopping budget in physical locations,” and prefer to buy in-person when they can.

It looks like in-store shopping is here to stay, too. But with changing habits and expectations, retailers need to think outside the box and create a more interactive, immersive store experience. Here are examples of five retailers with impressive customer experiences.

Source: Raydiant

Chanel Blends Two Worlds

Too often, consumers feel like they’ve seen it all, as brand after brand repeats the same marketing strategy. Sometimes these repetitive experiences are enjoyable, other times they grow tired with time… until someone comes up with a new trend, which, once again, everyone follows.

To navigate the challenge of coming up with new ideas for experiences that truly surprise and immerse customers in interactive retail experiences, Chanel decided to borrow from a very, very different world.

So what happens when a luxury fashion retailer and makeup brand mixes up some arcade elements?

A pink pop-up shop with “game stations named after popular products from Chanel, such as Rogue Coco, Chance and Hydra Beauty,” where visitors could win free products and participate in pre-launches of new products, reports Female Magazine.

In addition, the pop up shop presented retail displays with an Instagrammable background, which likely encouraged shoppers to create their own content around the shop, and thus connect further with the brand and help spread the word.

Farfetch Provides Technology-Empowered Human to Human Interactions

When Farfetch decided to take its ecommerce platform, which curates luxury brands, to the brick and mortar world, it decided to go big, calling it the Store of the Future.

In an interview with Business of Fashion, Farfetch founder and CEO Jose Neves said that the Store of the Future will revolve around humanizing and personalizing the shopping experience, as well as connecting it with online channels.

Machines will replace the store staff’s focus on supply chain logistics, like looking up an item in the database, so that the staff can “focus on the human side of the interaction” and become “in-store influencers,” Neves said in the interview.

However, there will be no one size fits all, or one experience fits all. Farfetch developed the initial apps for the brick and mortar platform, including customer recognition at store entrance, RFID-enabled and automatic population of wishlists based on products the customer browses through in retail store, yet is opening the platform for additional companies to develop complementary apps. It’s also letting each partner brand customize the features and experiences it wants to provide customers, Business of Fashion reported.

Audi Lets You Try Equipment Virtually Before it Customizes Your Car

While some products are easy to buy without extensively trying them out first, some are big purchases, that include many aspects of decision making, like a car.

Therefore, when Audi customers want to buy a car, they go to a private customer lounge at an audi dealership, put on a VR headset, and take a deeper look at all the equipment options, including “the smallest details,” with “an extremely realistic perspective,” Audi explained when it launched this experience. Customers can choose their favorite options “from several hundred million possible models and equipment variants,” Audi announced.

But that’s not all. Customers can fully immerse themselves in the interactive retail experience before they make a purchase decision, “in three dimensions and 360 degrees, with all light and sound effects. Various environments, times of day, and light conditions,” it added.

Check it out in this one minute video:

Rebecca Minkoff Makes Shopping Seamless and Smart

Today’s consumer, especially the millennial one, is looking for greater control over her shopping experience, and less dependency on sales assistants, Rebecca Minkoff CEO Uri Minkoff explained to Footwear News. Therefore, the fashion retailer decided to find “ways to make her feel like she can have multiple experiences,” he said.

In an interview with Fast Company (see video below), Minkoff said the store welcomes you with a smart screen, where you can choose a beverage – including water, coffee, green tea or champagne – and some favorite looks. You can choose items to try on, and get a text when the items arrive at your dressing room.

When you reach the dressing room yourself, you’re welcomed by a smart interactive mirror that already knows all the items you chose to try on. If an item doesn’t fit, you can use the mirror to send a notification to a salesperson, and the sales associate will deliver the item to your dressing room.

Meanwhile, the interactive displays allow you to adjust your dressing room’s lighting – from sunny to sunset – so “you can get some confidence around what it might look like in your end use case,” Minkoff told Fast Company.

Then, customers can use self checkout and the retailer gains valuable data about its customers’ preferences.

Nike Simultaneously Offers Connected Experiences and Shopping Independence

With more Nike shoes than anywhere and an emphasis on immersive experiences, Nike’s flagship New York City store is designed to make you feel like you’ve entered a high-tech museum, not just another shop. According to Nike’s website, the store layout can be easily reconfigured, so the brand can customize and reshape experiences at all times.

The store lets you scan codes that have been placed on mannequins and request a store athlete to deliver its outfit in your size to your dressing room, adds Nike.

That’s right – a store athlete, not a sales associate.

You can also talk to an expert and get advice on styling your look or choosing the best “laces, fabrics [and] decals to customize your products.

If you prefer to do your shopping on your own, no worries. Scan your purchases using the Nike app and check out without waiting in line.

That said, Nike’s in-store experience is vastly about connection – connection to the brand, connection to the community, connection to the world. In its Seoul, South Korea, location, for example, it helps in-store shoppers find sporting events designated for the Nike community. It also accepts gently worn sneakers and apparel from customers, which it either recycles or donates, in an effort to become more and more eco-friendly, reports Input.

Mostly, though, Nike is all about unique experiences that keep customers coming back. As Nike Direct VP Daniel Heaf told Input, the intention “is to never have the shopping experience be the same if people come in on separate days.”

Create Interactive In-Store Experiences to Thrive Long Term

Even though eCommerce might be getting most of the headlines right now, customers don’t want to stop shopping in brick-and-mortar stores. They want the human connection, the ability to touch products before they buy them, and the fun of having the product with them as soon as they buy it.

But as online channels offer more and more personalization and convenience, including faster shipping, in-person stores that want to thrive long-term must provide immersive, interactive experiences that make the visit especially worthwhile.

It’s been two years since the pandemic transformed the retail market, and it feels like we’re still adjusting, as nothing remains certain. But the retail industry isn’t letting it stop its efforts to create the best shopping experiences or tap into the most innovative technologies.

 Today, we bring you six exciting retail trends to watch, and include some practical advice to help you turn these trends into competitive advantages for your company.

Expand into China as its Youngest Generation Devours the Luxury Retail Market

We’re seeing a large number of companies heading for Chinese expansion, and with good reason. “China was the only country with positive luxury growth in 2020,” reports Fashion Discounts. “By 2025, China will be the world’s largest luxury market,” predicts The Luxury Conversation.

The time to expand is now, as its youngest generation – born in 1990-2000 – is “now 50% of the luxury market,” according to Jing Daily.

The timing is especially critical, as Chinese consumers tend to celebrate national pride and buy from local brands, especially following the pandemic, explains The Luxury Conversation. To engage them, we recommend localizing at a deep level – from the software you use to the influencers you partner with – to create a shopping experience that feels immersed in the local culture.

Prioritize Gen Z

One of the biggest retail trends to watch is the growing emphasis retailers put on Gen Z – rightfully so, since “70% of luxury sales will be made by Gen Z and millennials by 2025,” reports Luxe Digital. And their shopping preferences are different from what we’ve known so far.

Source: Luxe Digital

According to eMarketer, Gen Z consumers educate themselves on social media, which is the best place to target them, whether organically, via advertising or with the help of influencers. According to the Instagram 2022 Trend Report, over 1 in 4 intends to shop directly through their social media feeds.

When you do target them, eMarketer points out they care a lot more about a brand’s proactive action toward social justice than they do about product prices, even though they don’t make as much money as older generations. Instagram emphasizes that Gen Zers cares about sustainability, including reusing, repurposing and reselling their clothes.

Leverage Influencers in a Way that Actually Matters to Your Audience

Using influencers to engage with consumers has been one of the retail trends to watch for a while, but it’s growing in significance, especially as Gen Z gets prioritized. According to Ogilvy’s 2022 report, “influencer marketing is 277% more emotionally intense and 87% more memorable” than TV ads, as it gets integrated into content consumers already enjoy.

In addition, influencer marketing is a great opportunity for the retail markets to put their money where their brand promises to this generation are.

The report indicates that “38% of consumers are more likely to trust brands that cast diverse people in their ads,” but points out that this alone won’t solve the inequality found in the industry. It explains that “black female influencers are paid up to 10 times less for the same work as their white counterparts. In addition to the steep racial pay gap, female influencers are paid 33% less than male influencers – even though female influencers make up 84% of the entire industry. On top of that, LGBTQ+ influencers, as well as influencers with disabilities, are more often compensated with ‘exposure’ in lieu of the standard rates brands usually pay.”

Design Omnichannel Clienteling

After getting hit during the first COVID year, “the personal luxury goods market grew by 29%” in 2021, reaching 283 billion Euros, reports Bain & Company, which expects this retail market to keep experiencing a 6-8% annual growth by 2025.

Source: Luxe Digital

However, the pandemic managed to change this market nonetheless. Alongside other sectors, clienteling turned to virtual platforms to keep operating, and it is expected to keep combining in-store and virtual channels as we head into 2022.

Sales associates will need to be empowered by omnichannel data, so they can predict customers’ needs based on their history with the company, make personalized recommendations, and keep track of customers’ desired products when they get back to stock, no matter how they interact with customers.

Provide Same Day Delivery (Although Most Consumers Still Accept a Slightly Larger Delivery Window)

The last mile continues to be a critical aspect of the shopping experience. Expect an increase in the amount of retailers offering same day delivery, some as fast as two hours, predicts Forbes. One of the ways they’ll make it happen is by establishing micro fulfillment and distribution centers across the country, it explains. Another way is by partnering with third party delivery services, such as DoorDash.

But in case offering same day delivery feels like too big of a leap from where your company is right now, McKinsey research found that “more than 90% of US online shoppers expect free two to three day shipping.” Longer than that, half of them will shop elsewhere.

Bring RFID to Your Stores

According to the Global RFID Market Research 2021-2026, Logistik Unicorp was able to reduce shipping time by 35% using RFID technology, while ensuring “strict quality requirements.”

RFID stands for radio-frequency identification. When you have an RFID reader, it can read tags or smart labels, then capture the data on your system. This technology is growing in popularity in retail markets, because it automates and simplifies transaction and inventory management.

For example, one of the trends we’re seeing is letting RFID automatically scan items in shopping baskets and populate customers’ carts, so they and your cashiers won’t need to do it automatically. That’s a much better shopping experience, as it removes the need for tedious tasks, and keeps the focus on the fun. Then, when customers walk out of the store, it scans the items again, to verify they actually paid for them. If they didn’t, an alarm is set off.

Back in their warehouses, a key trend that came up in the report is that retailers use RFID technology to track and manage inventory more accurately, plus make smarter purchase decisions, which lead to higher profit margins.

In addition, we’ve seen retailers use a wand to scan boxes. It records which orders have been processed and which items are leaving the warehouse. After all, if you’re looking for retail trends to watch, you might as well explore trends that make your team’s life easier while giving customers a better experience. It’s kinda like having your own magic wand.

2022 Retail Trends to Watch… and Implement

Now that you’ve got a list of the most exciting retail trends to watch, it’s time to start implementing them and lead your retail markets. But the good news is you don’t have to implement all of them, certainly not right away.

It’s much better to choose one or two that holistically align with your goals for 2022, and master them before expanding further. It will help you focus on creating the kind of shopping experiences that drive customer joy. Test these trends out, get feedback from your customers, check your profit margins, then adjust as you go. Over time, you’ll drive loyalty and advocacy, too, leading to a compound interest in your bottom line.