As the world enters another year of the pandemic that has re-shaped the way we spend and consume, Wunderman Thompson Intelligence, through its report titled ‘The Future 100: 2022’, brings to the fore 10 trends that will set the stage for retail and e-commerce this year and for years to come.

This year ushers in a resolute positivity that encourages playfulness and creativity — so much so that Pantone created a completely new colour to define 2022. Brands and marketers are eager to provide joy in people’s lives by creating euphoric Ads as they, too, ride the optimist wave,” says Emma Chiu, Global Director, Wunderman Thompson Intelligence, as stated in their report titled ‘The Future 100: 2022’.
From vintage store designs to digital avatars, the future of retail and e-commerce is going to be one of the most exciting times for the sector, one that is full of adventure,innovation and pure genius! A mix of the modern and traditional ways of business, retailers and e-tailers have much to look forward to.

Of the many trends that the report enlists, it highlights the following 10 that will shape the world of retail and e-commerce as we know it today:

1.DIRECT TO AVATAR

From B2B and DTC to DTA — the latest business model sees brands releasing digital products direct to screens. In addition to business-to-business (B2B) and direct-to-consumer (DTC) models, various fashion brands introduced direct-to-avatar (DTA) shopping in 2021. In December 2021, Nike acquired virtual sneaker marketplace RTFKT. Ralph Lauren launched a 50-piece digital wardrobe, available to buy in social networking App Zepeto, and American Eagle debuted its DTA apparel for Bitmojis. Gucci and The North Face started the year with a collaboration on avatar- wear for Pokémon Go. And digital fashion house The Fabricant has partnered with brands such as Adidas, Puma and Tommy Hilfiger to virtualise their clothes.

The report states that as people begin to get more comfortable with digital items, there will be a time when they’d rather have a wardrobe that’s rich in digital fashion items than a physical one.

2.RETAIL SHAPE-SHIFTERS

Long-term challenges are forcing retailers to rethink their core offers, with some diversifying into novel areas. Few sectors have had a more turbulent couple of years than retail. The story of 2020 was one of deserted high streets, shuttered shops and plummeting sales. Fast-forward to today, and retailers are burdened by disrupted supply chains and labour shortages. These crises are hastening a realignment. In times of uncertainty, adaptability is key. Enterprising retailers are shifting gears, finding creative ways to diversify that go beyond the borders of their business. In the new retail era, consumers no longer see brands as serving one core purpose. People want deeper experiences with the brands they trust, so there are opportunities to capture new revenue streams. Diversification could be key to the brick-and-mortar retail recovery.

3.PRIVATE DOMAINS

Messaging platforms are becoming the next battleground for brands and loyalty. Chat commerce (c-commerce) is sprouting on messaging platforms. It is also known as private domain commerce, to differentiate it from the public domain of brand websites or marketplaces. As people increasingly converse on WhatsApp and similar Apps, brands are also jumping on these chat platforms to build smaller but more intimate, personalised relationships with groups of consumers.

4.VIRTUAL FLAGSHIPS

Digital flagship stores are taking over e-commerce storefronts. Today, 81 per cent of global consumers agree that a brand’s digital presence is as important as its in-store presence, a July 2021 Wunderman Thompson Data survey found. This is prompting brands to enhance their e-commerce storefront prominence and create virtual flagship stores. According to predictions from eMarketer, the global ecommerce market will grow from $4.89 trillion in 2021 to $5.42 trillion in 2022. Virtual flagships are becoming the new storefront to entice shoppers and enhance a brand’s overall digital experience, the report adds.

5.GEN ALPHA RETAIL

Born between 2010 and 2025, generation alpha — gen Z’s younger siblings — are already making waves in the retail world. Three ways in which generation alpha is driving the next era of retail include gender- less shopping, inclusive aisles and sustainable play. Brands and retailers are eschewing traditional gender categories in favour of gender-neutral products and lines. Not only that, they are also widening their offerings to be more inclusive of a range of physical and mental abilities. Following in their older siblings’ footsteps, gen alphas are cementing the key retail ethics that gen Zers pioneered. Born between 2010 and 2025, generation alpha — gen Z’s younger siblings — are already making waves in the retail world. Three ways in which generation alpha is driving the next era of retail include gender- less shopping, inclusive aisles and sustainable play. Brands and retailers are eschewing traditional gender categories in favour of gender-neutral products and lines. Not only that, they are also widening their offerings to be more inclusive of a range of physical and mental abilities. Following in their older siblings’ footsteps, gen alphas are cementing the key retail ethics that gen Zers pioneered.

6.DEPARTMENT STORES REFORMATTED

Retailers are rethinking the traditional department store model. The latest department stores are more town squares than retailers, reflecting a shift in the retail landscape from big-box luxury to community microcosm. A new concept department store is reinventing a location formerly occupied by legacy British retailer Debenhams. Called Bobby’s, the new store opened in the UK town of Bournemouth in September 2021 and houses a beauty hall, an art gallery and ice-cream & coffee parlour, alongside shopping and local artisans, in place of floors filled with clothing, accessories and home- ware. Future plans include a hairdressing salon, dental services, a microbrewery, and even a smokery. It’s clear that the traditional department store format is no longer working. Now, the next generation of department stores are having to rethink and adapt.

7.DIGITAL TWINS

Retail stores and factories are being cloned for the virtual world, to promote familiarity and efficiency. Technology companies are making it easier to create digital twins. Retailers are also opening digital twins of existing stores to promote familiarity and more natural navigation for shoppers. According to the report, in March 2021, Burberry launched a digital replica of its flagship store in Ginza, Tokyo. And Coach collaborated with virtual store developer Obsess to clone its New York Fifth Avenue flagship store. Digital twin stores are innovating the retail sector, with the promise to solve logistical issues for the real-world and replicate the in-person shopping experience, the report says.

8.BIG TECH BRICKS AND MORTARS

Technology giants are moving off screens in their latest consumer push. Big Tech has its sights set on physical retail, which could further cement the growing crossover between IRL and URL shopping.

 

 

 

9.NFT MARKETPLACES

Brands are finding new revenue streams in the evolving non-fungible-token sector. Companies are growing their revenue in this new digital frontier. Where consumers are looking to collect and trade, artists and brands are ready to create and mint non- fungible tokens (NFTs) — and all parties are meeting in emerging forums in the Metaverse. As major brands and industries continue to invest in NFTs and participate in their trade, the Metaverse is evolving in its potential for revenue and opportunities. Brands who take advantage of this uncharted territory may find new dividends in these developing marketplaces.

10.RETRO RETAIL

The latest high-design stores are turning back the hands of time with nostalgic interiors. The past two years saw people turning to nature-inspired design to create a sense of comfort and stability. Now, the latest store designs are opting for kitschy, playful interiors that offer a nostalgic escape.
Be it high streets or malls, store design is rapidly changing to make the interior more comfortable and friendly for the customer while adding that extra bit through colours, quirk and a retro feel. People are increasingly being charmed by the vintage, and just like clothing, store design, too, is being re-imagined to take people back to the yesteryears.

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