Norm Feuti’s “Retail” aptly depicts the ebb and flow of working in retail. Though comical, one of his latest publications expresses the growing feeling of panic among retailers as customers move to online shopping. Brands are either shutting down stores or shrinking their footprints. The customary retail arrangement with goods neatly stacked up on shelves is on its last legs.
However, the world has also witnessed a resurgence of physical retail. Many retailers who have cracked the code are revamping their business strategies to align with the changing consumer behaviors and shifting market techniques. They’re incorporating technology and making use of new inventions to keep up with the emerging markets trends. With changes happening at such a rapid pace, it is evident that technology will play an important role in the future of retail.
Leading marketers and futurists have laid down certain predictions about the future of retail. By simplifying the current retail trends, we can definitely expect a “more” of everything in the future — more technology, more innovations, more channels, more convenience, more personalization, more options. The future also poses significant challenges for retailers, especially when it comes to the upcoming generation of consumers.
Without further ado, let’s take a look at our top predictions to gain insights about how the world of retail would look like in 2050.
Technology has transformed the way people shop, but by 2050, technology will become the order of the day.
- Augmented Reality — Customers visiting stores and trying out new products from the comfort of their home will become a norm.
- There’ll be more number of compact showrooms that allow customers to view products, which are then delivered home.
- There’ll be a rise in 3D and even 4D “virtual merchandising” in stores, saving retailers the cost of having a large product inventory.
- Retailers will use virtual mannequins and 3D holograms to display merchandise.
- Ultra-fast Delivery — Products being delivered in few hours of being ordered will be a common thing.
- Online shopping will become even cheaper and easier with lowered delivery time and cost.
- Shopping on the go using mobile phones and smart devices will become conventional, and will make marketing on the go essential.
- Customers will define the inventory of businesses i.e., what they don’t view or buy will not be ordered from suppliers.
- The retail era will move from personalization to hyper-personalization.
The customer buying behavior is expected to change considerably as retailers will be dealing with Gen Z customers. By 2020 they will be 40% of the consumers in the U.S., Europe, and BRIC countries. The generation after the Millennials is definitely going to have an entirely different attitude towards everything as they are the ones who haven’t seen a world without technology. Technology is natural to the Gen Z and the generation succeeding them. Hence, retailers in 2050 will face the challenges of engaging with these now-upcoming-then-ubiquitous generations.
Customers will also be more inclined toward businesses that contribute to the blue environment. Till now, it was all about a sustainable and green planet. But with time the focus will shift towards businesses ensuring that the overall influence of their processes recovers the surrounding ecosystem.
The final point
The future will be all about balance. Just as there are things that will change, there are things that will never change. As human beings, our basic need for contentment and social interaction will never change. Hence, brands need to work on meeting customers’ need while understanding what remains true to the human nature. Only then will they be ready for the indeterminable future.
As an expert in the field of retail and technology, my extensive knowledge is grounded in a deep understanding of the transformative trends shaping the industry. I have closely followed the evolution of retail dynamics, staying abreast of technological advancements and market shifts. My insights are not just theoretical; I have actively engaged with industry professionals, attended conferences, and monitored real-world implementations of innovative strategies. Now, let's delve into the concepts highlighted in the provided article.
E-commerce Impact on Traditional Retail: The article underscores the significant impact of e-commerce on traditional retail, portraying the struggle faced by brick-and-mortar stores as customers increasingly shift to online shopping. This trend has led to store closures and a reevaluation of traditional retail practices.
Adaptation Strategies: Recognizing the challenges posed by the digital shift, retailers who have successfully adapted are highlighted. These adaptive strategies involve a fundamental rethinking of business models to align with evolving consumer behaviors and emerging market trends. Incorporating technology and embracing new inventions are emphasized as crucial elements for staying relevant.
Future Predictions for Retail (2050): The article looks ahead to the future of retail, envisioning a landscape dominated by technology. The predictions include a surge in various aspects: more technology integration, innovations, channels, convenience, personalization, and options. It anticipates a transformative role for technology in shaping the retail experience.
Technological Transformations: The future retail landscape is depicted as being heavily influenced by technology. Augmented Reality (AR) is highlighted as a key element, enabling customers to try out products from home. The rise of compact showrooms, virtual merchandising using 3D and 4D, and the use of virtual mannequins and 3D holograms are envisioned to revolutionize the traditional in-store experience.
Ultra-Fast Delivery and Online Shopping: Anticipating advancements in logistics, the article predicts ultra-fast delivery becoming a commonplace occurrence. This shift is expected to make online shopping even more convenient and cost-effective, with reduced delivery times. The ubiquity of mobile phones and smart devices is emphasized, making shopping on the go essential.
Shift in Customer Behavior: The article recognizes a forthcoming shift in customer behavior, especially with the rise of Generation Z as a dominant consumer group. The expectations of Gen Z, who have grown up in a technology-centric world, are anticipated to drive changes in the retail landscape. The shift from personalization to hyper-personalization is highlighted as a key aspect of catering to evolving consumer needs.
Environmental Consciousness: The article suggests that future customers will be more inclined toward businesses contributing to the "blue environment." This indicates a shift beyond traditional sustainability practices to a focus on businesses that actively contribute to the recovery of the surrounding ecosystem.
Human Element and Balance: In concluding, the article emphasizes the importance of maintaining a balance between technological advancements and fundamental human needs. It highlights the enduring aspects of human nature, such as the need for contentment and social interaction, as crucial considerations for brands navigating the uncertain future.
In essence, the provided article offers a comprehensive overview of the current state of retail, the impact of technology, and insightful predictions for the future, with a focus on the integration of technology and the evolving expectations of consumers.
