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Networking, Personalisation To Rule Retail Industry In 2023
2023 will be a critical year for brands to strengthen their consumer-centric retail practices to thrive in the digital-driven retail economy
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The year 2022 will always go down as one of the most transformative years in the history of retail market. Brands and Retailers were seen emerging the impact of Covid 19, as retail was one of the worst-hit sectors.
Over the past year, retailers have been taxed and squeezed by supply chain challenges, growing inflation, economic uncertainty and geopolitical factors with the new year. However, there is a more optimistic outlook and a greater emphasis on the customer shopping journey.
Given the pandemic, brands had to step up their digital strategies to maintain consumer connections and drive sales. As consumers adapt to these technological interventions, 2023 will be a critical year for brands to strengthen their consumer-centric retail practices to thrive in the digital-driven retail economy. Here is a look at the trends that will change the face of retail industry in 2023.
Physical retail stores and websites are becoming increasingly essential advertising sources for their traders. Selling commerce space to vendors is an evolving revenue stream for retailers and allows them to deepen their relationship with business partners. According to Archies, which is known as a retailer in gifting market, Ad space sales on websites, in-store displays, mobile applications, and streaming services will continue to grow across more retailers.
Reliability On E-commerce
Though e-commerce had built traction before 2020, the pandemic sped up its volumes and acceptance. Although growth slowed after lockdown restrictions were lifted completely, online shopping has now become an inseparable part of most consumers' habits. Because of its convenience and non-invasive advertising, social commerce is boosting e-commerce.
Round-the-clock customer support
Customers expect 24-hour service because online orders can be placed at any time of day or night. It is not sufficient to provide excellent service, it must also be available at all times. Chatbots have played a major role in this and will continue to rule even in 2023. Chatbots have made their mark as the online equivalent of a human representatives in recent years. Chatbots enable brands to save money, provide better customer service, engage with customers across multiple channels, provide always-on customer service, and expand across geographies without incurring overhead or other costs.
Social Media Analytics
Retail brands must have strong social media presence to gauge the audience and expand their customer base. It is also crucial to understand customer sentiments surrounding the brand, monitor it, and collect and analyse data on how people talk about it on social media. This can be done by actively engaging on social media with the consumers. Retailers who build a large following can use data and sentiment monitoring to understand consumer mindsets and forecast behavioural trends better.
Growth of Hybrid Model
The resurgence of in-store shopping has prompted retailers to think differently. Many aim to create more omnichannel customer journeys and deliver unique, memorable shopping experiences that combine elements from the digital and physical worlds.
Sustainable packaging and products preferred
Consumers prefer recyclable and sustainable packaging. To promote sustainability, retailers should use recycled materials and pay attention to outer and inner packaging.
The rise of D2C brands
The emergence of the D2C category is another trend that deserves special attention. Direct-to-consumer is gaining popularity among both buyers and brands due to its increased accessibility, lower prices, convenience, seamless online payments, low-cost internet access and an increase in social media usage. As app swiping becomes more popular, brands' marketing and social media strategies are changing. YouTube, Instagram, influencer marketing and regional marketing are all becoming more popular, displacing traditional marketing.
As per Chairman and managing director of Alcostar Group of Companies, Arundeep Singla, people will opt for premium liquor brands flavoured alco-Bev, like flavoured Gin and flavoured Vodka.
“It's become fashionable to try new things, especially considering the current generation's varying needs and goals. There is little doubt that the drink and sensory experience has taken precedence with flavours based on tea, berries, citrus, coffee, rhubarb and more. No matter if it's flavoured vodka or gin, people prefer it to their typical boring cocktails. Additionally, people are more likely to experiment with their drinks by adding different mixers to make them taste better. There is a huge market and demand for Premium Liquor brands, due to this rising demand, there will be a huge change in the alco-Bev retail sector for 2023,” he added.
While talking about how retailers use personalization across channels to deliver superior customer experiences, Singla said that “Nowadays, brands are focusing on hyper-personalization in retail as it adds value to the customer experience. Retailers make sure to offer a thorough brand brief that has all the relevant details about the products, such as the origin of the product, how it is different from other products and the authenticity of the product, along with personalised tasting support for the customers.”
Talking about his industry, he said, “Brands are also focusing on special tours of the distillery, microbrewery and vineyards for customers to gain their trust. Brands are coming up with new and variety of products as there are numerous products in the market; they are also focusing on the new flavours of Alco-Bev as people are continuously looking for a change in beverages.”
The Executive Director of Archies, Varun Moolchandani said, “The goal of omnichannel personalization is to create consistent relationships with the customer any time they have an interaction with a business.”
Omnichannel personalization incorporates information from all channels, such as in-store interactions, social presences, phone calls, mobile apps, websites, email, and so on. It extends the experience to every point of contact between the customer and the brand, he added.
“We believe that personalization used to be a nice option for marketing, but today it is a requirement for creating a positive customer experience. By micro-segmenting customers, providing them with highly relevant content, using omnichannel data, and leveraging AI, businesses can create a positive, personalised journey for their customers,” he added.
Moolchandani further spoke about strategies for creating an attractive product that plays a vital role at the retail counter:
a) At point-of-sale, POPs are placed to create the feel of the occasion in the store.
b) Staff’s friendly intrapersonal skills- share the uniqueness of the products with the customers.
c) Along with neatness and cleanliness, creating an aromatic and musical environment in the background.
d) Occasionally offer discounts on products digitally and via point-to-point posters at every point of sale.
e) Digital promotions on the new launches.
f) Some retailers give personal attention to customers by wishing and offering them Birthday discounts for the whole birthday month and bringing them back for birthday shopping and sending them gifts on their Anniversary to sustain them as valued customers.