The rate of change in the retail sector is going from ‘fast to furious’ if you pardon the cliche. I’ll be outlining this issue when I speak to a small group of folks in the retail sector in New York in early January at an invitation only event. The problem? Most retailers are too focused at a strategy level on social marketing — and aren’t thinking about the big, substantive transformative trends which will completely reshape the sector. It’s a perfect strategy mismatch!
What’s going on? Here’s a clip from a talk last fall in Naples, Florida, in which I cover a few of the trends occurring in the world of retail
Consider what’s happening:
- the rapid emergence of new forms of in-store promotion known as “shopper marketing,” which combines location intelligence, mobile technology and in-store display technology
- massive changes to the in-store payment process, including mobile payment involving Apple Pay and the complete elimination of the concept of the cash-register
- the rapid emergence of mobile loyalty programs
- the emergence of same-day shipping from titans such as Google, Amazon and Walmart
- the rapid installation of “click and collect” infrastructure (i.e. an online purchase, with same day pickup at a retail location)
- faster ‘store fashion’ with rapid evolution of in-store promotion, layout and interaction
- the arrival of intelligent packaging and intelligent (“Internet of Things”) products
- the battle of the small vs. the incumbents (think Square vs. Visa/Mastercard/Amex)
- collapsing product life-cycles, rapid product obsolescence and the implications on inventory and supply chain
There’s a lot more going on. In essence, so much change that the word ‘agility’ is becoming more than a word – it’s a capability that increasingly will define success in the future for every retailer.