GUEST ARTICLE
Technology and retail – bringing two worlds together
Technology in the retail sector can have a transformative quality that changes the way that brands interact with consumers. Last year, 100% Group carried out market research to find out what both brands and marketing agencies were planning for the year ahead. This research included a significant focus on technology – the way it supports the customer experience and how it transforms the buying transaction, through to how the customer interacts with the brand both pre and post purchase.
Once a threat, technology has become a great ally to the retail sector. But, how much of the innovation that we saw during Covid will remain? Or will the technological advances that were made during this time slowly fade back into the background?
Since the pandemic, consumers have not only been seeking different ways to engage with brands, but also different ways to shop. As the high street has now largely returned to its pre-Covid state, the technologies that were once employed simply to make retail possible are being used to offer consumers a more complete picture of the brands they are buying from, and to make point of purchase a faster and more seamless process.
We are increasingly seeing brands thinking outside of the box with technology and the experiences that they can offer to consumers. Both fashion and luxury brands have been experimenting with ‘gamification’ to appeal to a younger generation of shoppers who are happier to have a purely online relationship with retail.
Nike has also experimented with virtual environments with the creation of ‘Reactland’ to celebrate the launch of its new ‘React’ shoe. In-store, players can try on the shoe and have their picture taken and create their own digital avatar, which they guide through different simulated environments, running along roads and jumping off buildings to trial the light, bouncy shoe. The ‘in-store trial’ experience was incredibly effective, with 48% of players going on to purchase the product.
Whilst these bold technological statements have paid off for some brands, for many it is about focusing on customer-centric marketing that makes the whole process of purchase much smoother and more informed. QR codes enjoyed a real renaissance at the start of Covid. These quick response codes were easily identified by smart phones and led consumers straight through to a specific page, whether that was a point of purchase or more information on a particular product. It appears that the humble QR code is around to stay; it can be found in so many different environments and it’s almost become second nature for consumers to look for one.
What is surprising is the number of consumer goods brands investing in augmented reality or virtual reality - that is, how few are investing in this technology. With only 16% of the survey respondents saying this would be a priority for them in the coming year, it would appear that this once burgeoning market is already stalling as part of brand interactions. One reason for this could be that after a prolonged break from the physical side of retail, consumers are yearning for the ability to actually interact with the products in person rather than virtually through a screen.
What is clear is that the industry is embracing technology and making the purchasing decision and process simpler for the shopper. The collision of both physical and digital worlds has been coined as ‘phygital reality’ – a place where consumers can seamlessly live, work, shop and play both in person and online. Brands that capitalise on this can have the best of both worlds – one where consumers get a technology enabled at-home experience or can see and use the same technology in-store to create familiarity. Whatever the solution brands are choosing, technology is now almost inextricably linked to retail and will continue to push the envelope of what is possible for both brands and consumers.
Conclusion
If you would like find out more about the areas that were covered in our market research, you can download the second edition of the 100% Group’s Global Retails Futures Journal here.
Author
Dan Williams, 100% Group
Founder and Managing Director
Dan Williams is founder and managing director at 100% Group, a global marketing agency which loves the challenge of connecting brands with shoppers through retail experiences.
100% Group provides connected solutions to activate marketing campaigns in stores in over 65 countries across Europe, Middle East, India, Africa, USA, Canada and beyond. The global team work on high-profile product launches and ground breaking in-store experiences for some of the world’s biggest retail brands like Adidas, Beats by Dre, North Face, and Sonos.
100% Group is also committed to reducing the impact retail marketing has on the environment and on the planet as a whole. The vision of the company is to become the most sustainable retail installations expert and promote change across the industry through collaborations and partnerships.
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