Archive for January, 2020

The retail landscape is changing at a rapid pace, driven by technology which is being constantly developed and refined to meet the needs of today’s digital-first consumers.

We can confidently say that any new retail trend for 2020 will involve technology in some way, but what will that technology be? And how much will it transform the sector? Let’s take a look at seven retail trend predictions for online and in-store this year.

1. AR and VR to become more mainstream

Augmented reality (AR) and virtual reality (VR) have gained traction in recent years, adopted by forward-thinking retailers wanting to create more engaging and immersive customer experiences. Think apps that let customers try on clothes without moving a muscle, or sample what pieces of furniture will look like in their home before they buy.

Consumer demand for convenience, coupled with advancements in AR and VR which has made them more affordable to implement, means the tech is set to become more widespread this year, thinks BizTech Magazine.

2. Retailers to explore new shop formats

Forbes believes more brands will trial opening stores like Amazon Go, where sensors detect what shoppers pick up and charge them accordingly, ridding the need of checkouts or cashiers. It’s yet another progressive step in the integration of digital and physical retail, improving customer experience while slashing labour costs for retailers.

3. The death of marketing ‘clickbait’

Speaking to Econsultancy, Phrasee CEO Parry Malm believes this year spells the end to what he calls the ‘clickbait decade’ – think messages like ‘Act NOW,’ ‘There’s only X amount left,’ or ‘You’ve only got X to BUY BUY BUY’. The issue with this race-to-the-bottom marketing is that it’s short-termist and risks damaging long-term brand equity.

“Short-termism and exploiting people’s emotions & vulnerability is SO last decade,” Malm says, adding: “Focusing on dwell time with your brand and producing valuable content that engages your audience is the only thing that will prevent you from being the unenviable winner of the race-to-the-bottom.”

4. IoT to be adopted by more stores

As physical and digital retail continues to blur, more retailers will look to implement the Internet of Things (IoT) within their stores. It’s predicted that there will be 30 billion IoT devices in operation in 2020, up from 15.4 billion in 2015. The Mckinsey Global Institute believes that the economic impact of these devices on the sector will amount to between $410 billion and $1.2 trillion by 2025.

IoT powers things like smart shelves, automated checkouts and personalised discounts. Shoppers can receive discount alerts when they are near a certain store, while those stores are able to harness IoT to more effectively track inventory and improve efficiency. This year, more physical stores will be using IoT to create experiences that rival online.

5. Big players explore blockchain technology

Crypto-currencies such as blockchain offer the chance to bypass ‘expensive’ forms of payment, notes RIS, provided those currencies can keep the transactions cheap. But it’s not yet a reality in retail – mainly due to the complex processes involved, along with security issues.

That said, there is scope within the industry to harness the technology for things like trade spend/ promotion management, warranty tracking of goods and product sourcing. We’re likely to see big consultant and tech partners continue exploring and evolving appropriate applications for retail this year.

6. The continued rise of visual search

Visual search is proving to be a big hit with shoppers, especially younger generations. Shoppers can search for clothes or other items by uploading a photo onto platforms like Google Images, then use that to inform the search with artificial intelligence (AI). It’s helping to refine consumers’ product search process, improving CX as a result.

Retailers have a good incentive to adopt visual search: Gartner predicts that brands harnessing the technology will see their digital commerce revenue increase by 30% by next year. Brands targeting younger shoppers should make it a priority.

7. Focus on mobile shopping app security

Today’s consumers are very aware of the vulnerability of their data when shopping online, with a study showing that almost six in ten consumers who don’t use apps are worried their information will be compromised. It’s pivotal that brands have effective solutions in place to put consumers’ minds at ease.

From safeguarding point-of-sale payment information to ensuring processes are GDPR-compliant, retailers will need to respond to consumers’ shifting security needs. This will involve putting apps through the same type of penetration testing and endpoint precautions that companies use to protect other parts of their networks.

What next for your retail business?

No doubt these trends will affect your retail company in some way or another. Success will depend on you anticipating the trends and technologies likely to make the most impact in your specific retail sector, and putting in place processes to adopt them before the competition.

If you need any help harnessing the latest technology trends, why not get in touch with the Delta Group? As Europe’s leading in-store, outdoor and online visual communication specialist, we can help you to create enriching, innovative experiences for consumers and drive sales as a result. Give us a call today!

Long in the works, the so-called ‘5G revolution’ is finally set to gain traction this year. Over the coming months, we’ll see innovative brands utilise the new network capabilities to create enhanced customer experiences.

Mobile browsing will become quicker, smoother and more reliable thanks to 5G. Meanwhile, its huge bandwidth and speed will help to connect billions of devices and sensors and stream data-hungry technologies such as AI and face recognition, in real time and at scale.

It could be game changing for retail marketing, writes Gavin Mee, Adobe’s VP of Northern Europe in an Essential Retail article. Here’s what we can expect:

Mobile opportunity to skyrocket

Mobile has cemented itself as shoppers’ favourite digital platform for browsing, overtaking desktop as the main revenue source in April last year.

But the ability to browse and buy any place, any time, has created a challenge for brands. Shoppers now have more choice than ever before, and their desire for a bargain means their loyalty with retailers they know and trust has started to wane. Could 5G hold the solution?

In terms of customer experience (CX), 5G can offer so much more than smooth mobile browsing and content streaming. Retailers are able to reimagine the shopping experience, merging physical and digital worlds in creative ways, providing entirely new ways for shoppers to engage with brands and their products.

Augmenting retail realities

5G is the first network capable of streaming augmented and virtual reality (AR and VR) experiences to mobile devices in real time. This will allow brands to grab the attention of shoppers who love using their mobile on-the-go.

We’ve already seen AR in practice from some brands, used to overlay products on a person (like glasses or trainers) or a space (like furniture in a person’s home). These technologies will soon become commonplace – so says Gartner, 100 million shoppers could be shopping with the help of AR in-store and online by the end of this year.

The high street makes a comeback

5G will transform physical stores, inspiring consumers to return to the high street. Brands will be able to offer tailored experiences to each person who walks through their doors – digital ad displays will stream targeted ads to shoppers while browsing, for instance, while kiosks will connect people via video call to product experts in ‘call centres’ who can provide virtual, face-to-face assistance.

‘Magic mirrors’ in changing rooms that recognise an item of clothing a shopper is trying on – either through AI or sensors that detect RFIDs – can show product details such as materials, price and care instructions, or make suggestions for matching accessories. In-built touch screens in the mirrors will allow people to request items to be delivered to them, rather than them having to leave the changing room.

5G networks provide the ‘connective tissue’ that supports the vast array of sensor devices required to receive and transmit huge amounts of data that monitor a store, linking it with the retailer’s wider supply and logistics ecosystem. Sensors built into shelves could notify staff when products need replenishing or trigger stock orders from the central warehouse. All this will help to avoid scenarios that cause retailers to miss out on sales or push consumers to shop online instead.

Real-time omnichannel strategies

Data from Adobe show that 73% of consumers use multiple channels before deciding to buy, so it’s little surprise retailers with a true omnichannel presence enjoy an average 13% higher spend.

5G will empower retailers to better utilise the data they have and offer ways to gather data from traditionally ‘non-digital’ platforms, like bricks-and-mortar stores. These types of insights will help retailers understand consumers on a deeper level, designing strategies that people will love.

Retailers that harness the power of 5G this year will be rewarded with great brand loyalty from devoted, repeat customers. If you feel like you need some help harnessing technology to boost shopper experiences, get in touch with Delta Group today.

The Delta Group, Europe’s premier visual communications specialist delivering dynamic multi-channel marketing services to consumer brands and retailers across the globe, announce the appointment of Conor Callinan as new Managing Director of Delta Ireland, effective immediately. Conor has joined Delta Ireland from The Print Image where he was Managing Director for five years.

With over 18 years of print, design, logistics and promotional merchandise experience Conor brings with him a strong skill-set and an excellent reputation for relationship building and team leadership.

Jason Hammond, CEO of the Delta Group, said: “We are delighted that Conor has joined Delta Ireland as Managing Director. He brings a wealth of experience and knowledge to this important role that will be vital in helping carry out the Group’s growth strategy across Ireland and Europe.”

Conor says: “I am thrilled to have joined the Delta Group and am excited to lead such a strong, passionate team in Ireland. The 30,000 sq foot production and warehouse facility in Swords, Co Dublin is excellent and I cannot wait to help accelerate Delta Ireland’s growth into the new decade!”

Last year went out with a bang for many UK retailers, especially e-tailers who saw year-on-year sales jump by almost a quarter in December.

With 2020 well underway, retailers will be doing all they can to ensure continued success through January and beyond. Here are four top tips for brands, courtesy of Retail Week:

1. Go heavy on the discounts

January is synonymous with sales, with consumers extra keen to banish the post-Christmas blues by picking up a bargain or two. While heavy discounting doesn’t equate to the healthiest margins, it will allow you to shift old stock and inspire shoppers to purchase items they might not have previously considered.

But you need more than big red posters in your shop windows. Create inspiring window displays to entice people through the door, ensuring stores are kept exciting, clean and organised to prevent them from resembling jumble sales.

Advertising on social media, offering minimum spend incentives and promoting further discounting are other ways to bring shoppers’ attention to your sales.

2. Utilise returns

An influx of post-Christmas returns is to be expected. Rather than simply offering refunds, see if outstanding customer service can inspire shoppers to exchange the item instead, or spend elsewhere in your store.

You might look to offer incentives to shoppers with returns to buy again, such as free gifts, money-off vouchers or invitations to in-store events. Initiatives like these aren’t commonplace, but they could help to mitigate the losses retailers suffer as a result of returns.

Royal Mail found that three in five shoppers would be unlikely to use a retailer again if the returns experience was difficult, so make sure your process is simple and seamless.

3. Offer experiences

There’s a growing trend among shoppers for buying experiences over ‘things’. You might think this doesn’t bode well for a physical store selling products, but quite the opposite – you can offer a unique and exciting in-store experience alongside your usual stock.

The best type of experiences will depend on your brand, target consumers and what you sell. Some examples include product demos and workshops, or more high-end, technology-based experiences such as virtual changing rooms.

4. Jump on seasonal trends

Making the most of seasonal trends is a great way to drive custom, provided those trends are aligned with your brand. For instance, a lot of people have a health and fitness drive come the start of a new year, so this is a good area to focus on.

There are also campaigns like Veganuary and Dry January, the latter driving sales for brands such as M&S which has seen its low-alcohol category experience 89% year-on-year volume growth.

Sustainability is becoming more important for shoppers too, so think about how you can capitalise on this. You could launch a targeted product range, for example, or promote your company’s sustainability credentials across your marketing.

Whatever your retail goals for 2020, success will depend on your delivering an exceptional experience to consumers. If you feel like you need support, get in touch with Delta Group today.

It may be a brand new year, but many online retailers will still be basking in the success of last year’s sales figures.

An industry survey from BDO cited by Reuters revealed that online sales jumped by 24.5% in December 2019 compared with the previous year.

Figures were influenced by the fact that Cyber Monday was six days later than in 2018. Still, December saw the strongest monthly performance since 2013.

Britain’s brick-and-mortar stores didn’t fare too badly either: year-on-year sales grew by 0.7% in December, BDO’s monthly High Street Sales Tracker (HSST) found.

Sophie Michael, head of retail and wholesale at the accountancy and advisory firm, commented: “Black Friday (29 Nov) never quite ended and instead saw sales continue throughout the month.”

December sales were largely driven by big and widespread discounts across the retail industry – sales which have continued into the new year.

“January tends to be a positive month as people are more inclined to spend in the sales,” Michael noted, adding that it will be interesting to see if sales will be affected by the fact that shoppers may have done their bargain-hunting last month.

The survey from BDO failed to mention the effect – if any – of Prime Minister Boris Johnson returning to power following the 12 December election.

Clothing and home retailer Next was one of the first to report better-than-expected results for the festive period, leading it to raise its profit guidance for the full year.

While Sainsbury’s has just announced a slight -0.7% sales slip over the Christmas period, reports the BBC, this was down to performance of its Argos division. Grocery and clothing sales actually grew by a respective 0.4% and 5% compared with the previous year.

Now we wait on a whole host of other British retailers – including Tesco, Marks & Spencer’s and Morrisons – to release their figures.

Suffice to say, these results paint a positive picture of the retail landscape as we kick off 2020. To capitalise on such a market, it’s important for retailers to deliver outstanding experiences to each and every consumer. If it’s one of your resolutions to improve the customer journey, Delta Group is best placed to help you do just that.

As Europe’s leading visual communications specialist, we can collaborate with you to deliver a dynamic, end-to-end marketing solution. Whether you’d like help on creative, display or technology – or all three – get in touch today.