Editor's Note: Experts Forecast the Retail Trends to Watch
I recently asked Retail Online Integration's (ROI) stellar editorial advisory board for 100 words or less on an omnichannel retail trend they believe will have a big impact on businesses this year. As expected, I got some great responses back. What follows are the board members’ insights into what your business should be focusing on in the New Year:
"One of the most significant retail trends in 2015 is the continued growth in the adoption of smartphones for everything digital. Last year saw the separation between tablet and smartphone, with tablet traffic and sales somewhat stagnant while smartphone traffic and sales escalated at a rapid rate. The rise in smartphone usage can be traced to the comfort level with the smartphone as a multipurpose device as well as the popularity of larger screen phones. In addition, from a retail standpoint, e-commerce players are finally rallying and improving their smartphone user experience, either through responsive design or mobile applications. Popular nonretail smartphone apps such as Uber and OpenTable have given users confidence to dive into digital retail via smartphones. Add in the anywhere, anytime convenience factor and there's no turning back from mobile continuing to gain device market share." — Peter Cobb, Co-Founder and Senior Vice President, eBags
"At The Limited, we're definitely focusing on omnichannel programs/technology implementations to allow customers to get a product wherever and whenever she wants. This comes with an increased focus on mobile initiatives (not just conversion, but research, too). Lastly, we continue to focus on our client-first initiatives, which include personalization and ‘clienteling.’ With the growth of online webrooming, we'll be creating more branded content pages that leverage creative assets in an engaging way for our customers to maximize their experiences." — Jenn McClain-De Jong, Vice President, E-Commerce, The Limited
"Our 2015 trend continues to be taming the Amazon beast. Retailers can be beaten by Amazon or work with Amazon in a way that's effective and doesn't destroy their margins and pricing. Doing the latter is becoming a more and more valuable thing for us and will be a big focus for 2015." — Mike Faith, President and CEO, Headsets.com
"For the customer, it all starts with convenience and ends with customer service. As such, the e-tailing group will be monitoring how the store leverages technology to enhance the customer experience, from tablets to mobile point of sale to smart fitting rooms. At the same time, we'll keep our eye on inventory transparency and the ability to locate, reserve and pick up products in-store, and the corresponding communication and in-store experience upon arrival." — Lauren Freedman, President, the e-tailing group
"Discounts and offers jumped the shark in 2014. One holiday cataloger offered free shipping, a 20 percent discount and a $10 gift card for a single order. That's desperation. Unless we're to become a nation of discounters, offers will be scaled back to maintain profitability. To replace the perpetual sale, we'll see an emphasis on merchandise development. Consumers will open their wallets for new and exciting products. We'll see an increased emphasis on differentiation based on actual product offerings." — George Hague, Principal, HAGUEdirect
"Will web beacons be a ‘game changer’ in 2015, connecting the digital, mobile consumer to the physical world of the retail store? Or will they be just one more way to serve up the same generic sale coupons we bombard customers with through digital and physical media? The key will be leveraging beacons to provide the shopper with relevant services and experiences as she or he shops the store — relevant enough to keep Bluetooth "enabled" on the smartphone. Tesco has been testing customer service utility such as notifications that pre-ordered items are ready to pick up, while Walgreens is testing mobile couponing. HBC is testing targeted messaging in specific merchandise locations, while Safeway is transmitting offers at the entranceway. Watch carefully for results in 2015." — Richard E. Last, Chairman of the Board of Directors, Shop.org
"Customer retention rates and the variance of your 12-month buyer count are important trends to track in 2015. As business continues to shift to the web, retention rates are typically affected. While your 12-month buyer count may be growing, the increase might be coming from the number of one-time buyers on your file. Buyers who order directly from the web (i.e., noncatalog) tend to be item buyers vs. shoppers. They search the web for a particular item, find it and make the purchase with no intention of buying from that company again. Catalog buyers (and buyers driven to the web because of a print catalog) tend to be "shoppers" who enjoy flipping through the pages of a catalog." — Stephen R. Lett, President, Lett Direct
"A complex dance is happening in the catalog world. First, there's increased circulation (mostly prospecting) to resurrect half a decade of shrinking buyer counts. Second, design and brand updates are being implemented to counter the inevitable response rate declines from the prospecting increases. Both actions cost, forcing even more cost cutting to balance margins. Therefore, add in new cost cuts including more staff cuts, even lower page counts, even lighter paper, more aggressive use of add-on list hygiene/deliverability processing, and co-mail and price negotiations with vendors. How will this complex mix shake out? Stay tuned in 2015." — Susan J. McIntyre, Founder and Chief Strategist, McIntyre Direct
"One area of intense scrutiny this year will be our gross margins. We don't want to sacrifice profitability for top-line revenue growth, but at the same time, we want to offer some unique values to our home furnishings shoppers that distinguish us from competitors. What does this mean? Smart, opportunistic buying (e.g., manufacturer closeouts, volume buying, etc.) as well as intelligent pricing that maximizes profitability while keeping us competitive. We can't be all things to all consumers, but we can offer high quality and good value across all channels in the niche market that we dominate." — Richard Sexton, Founder and President, Carolina Rustica
"As an omnichannel retailer, we know our website and stores need to have a consistent brand feel and voice. With the launch of our new website in March, we wanted to get all of our employees involved in the development process. Everyone in the company has had an opportunity to contribute content. This collaborative process will help the relationship between the stores and the website. I believe that better internal processes and collaborations in 2015 will result in reduced costs, better morale and improved sales." — Kathy Doyle Thomas, Executive Vice President, Marketing/Development, Half Price Books
"As an e-commerce pure-play, my primary focus is maintaining a competitive edge. We're primarily focusing on three areas: user experience; building customer loyalty; and cost cutting while increasing customer satisfaction." — Howard Wyner, CEO and Chief Marketing Officer, Scentiments
