In retail leadership, it can be lonely at the top - as RX’s fearless leader Juanita says. RX Group hosts breakfast briefings to give retailers a chance to get together, learn from others and get inspired with exciting industry happenings from across the globe.
It was a wonderful morning – with around 80 of Auckland's retail fraternity and leaders exploring the topic of Adaptive Retail and how retailers can refill their batteries, ideas and customer focus.
We also had some very interesting and honest conversations from our panelists, Troy Tindall from Andoo Winning Group, Mia Anderson from 2 Degrees and Richard Harrison from HealthPost.
In case you missed it, here are the key takeaways from Juanita's keynote you need to know.
Before we get into the nitty-gritty, it is important to remember that:
Change is constant
Retail has always been an evolving landscape, but there has been an acceleration in the past 5-10 years. Constantly we hear transform, reinvent, build resilience - It’s our new normal.
5 generations
For the first time in shopper history, we have 5 generations of shoppers with incredibly diverse attitudes, beliefs and behaviours.
We have an entire digitally native audience where technology adoption is integrated into their lives, as well as others who simply “use the tools”.
That means understanding, engaging, prioritising and connecting with behaviours, initiatives and innovations. Which is extremely tough to balance when you run lean and mean.
Today’s consumer demands a level of personalisation, convenience, and seamless integration that transcends the boundaries of any single channel or touchpoint.
Enter a new way of framing retail – adaptive retail.
Adaptive retail represents the evolutionary step in the retail journey, where the lines between online and offline blur even further, and customers' needs become the guiding force behind every strategic decision.
For some, this might a ‘no shit Sherlock’ but for others where there has been a pressure to keep-up with the Jones's for fear of being left behind or not having the capabilities or resources to be customer-centric. Reframing your approach could be a game changer.
Here are the guiding principles to be aware of:
Customer intimacy
At the heart lies a commitment to customer intimacy, a deep understanding of the preferences, behaviours and aspirations that shape each individual’s shopping journey.
For many retailers this will be a really BIG stretch. Due to not being equipped with the right systems, processes, rhythms or resources to deliver this.
Nor do they know their customer – let alone intimately. This isn’t an obstacle, more an inspiration to leapfrog and embrace this deeply within parts of the business first where it is possible. Eat the elephant piece by piece.
The Omnichannel Imperative: Blurring the Lines
We know the traditional boundaries between online and offline channels need to dissolve to deliver a truly unified, connected commerce (omnichannel) experience.
Why?
Customers expect it
A consistent and cohesive brand experience across all touchpoints is incredibly important, whether it’s browsing a website, engaging with an app or stepping into a physical store
The Supply Chain Transformation: Anticipating Demand
In the realm of adaptive retail, the supply chain itself undergoes a significant transformation, evolving from a reactive system to a proactive, demand-driven ecosystem.
By harnessing the power of data analytics, AI, and predictive modelling, retailers can anticipate consumer demand with surprising accuracy, allowing them to optimise inventory levels, streamline logistics, and minimise waste.
By accurately forecasting demand and minimising excess inventory, retailers can reduce their carbon footprint, promote responsible consumption, and align their practices with the growing consumer demand for eco-friendly and socially responsible brands.
Constant change
We've all heard the phrase 'the only thing certain is change'. It's important to move some of our mindsets and challenge our boundaries and guide-rails. Success hinges on a brand's ability to change and anticipate future trends.
Consider:
Collaborations
Pop-up stores
Totally connected experience
Let’s also remember that no matter what category or industry you operate in, this change has raised the bar on customers’ expectations and demands.
Retail is now about orchestrating a total experience that meets and exceeds the expectation of the shopper functionally, rationally and emotionally…which has been undeniably changed by their expectations built from completely different sectors and categories.
What does this look like in real life? Check out Burger King's Traffic Jam Whopper.
Epic!
Seamless fusion
Let's talk Zara. What do you hate about the experience the most? Lines, lines and more lines!
After driving all the way to Sylvia Park and then waiting an hour to try on some Zara pieces, seeing another at least 30 minute line to pay really tests your character as a person. There's been SO many time where I've seen the lines and immediately left, you really do have to be in the right mood and have the patience of a saint. Just imagine how much business they are missing out on because of their ridiculous lines, people don't have an hour and half spare to wait in a Zara line (especially when the mobile service in-store barely works).
Enter Zara's new White Box Concept in Chicago
This concept introduces several innovative features designed to enhance the customer experience through technology and design. Here are the key innovations:
Open and Spacious Layout: The store features a minimalist and modern design with floor-to-ceiling windows, creating an open and inviting atmosphere
Sustainable Systems: The store incorporates sustainable lighting and other eco-friendly systems, aligning with Zara's commitment to sustainability
The store integrates the latest technology to streamline shopping processes and improve customer convenience.
RFID Technology: Radio Frequency Identification (RFID) is used throughout the store to enhance various customer interactions, such as fitting room reservations and checkout processes
Fitting Rooms: Customers can reserve fitting rooms through the Zara app, and RFID-enabled screens guide them to available rooms. This system reduces wait times and enhances privacy and comfort
Pick-Up Service: Shoppers can order items for pickup within two hours using the Zara app. A robotic-powered system facilitates quick and efficient order retrieval
Self-Service Checkouts: The store features self-service kiosks where customers can use RFID technology to quickly scan and pay for items, reducing the need for manual checkout
Product Organisation: The store is organised into sections tailored to different customer types and preferences, making it easier for shoppers to find complete outfits and accessories
Overall, retailers that thrive in this dynamic environment will be those that embrace a mindset of constant learning, experimentation, and adaptation, continuously refining their strategies and offerings to meet the ever-changing needs of their customers.
By leveraging cutting-edge technologies, data-driven insights, and a relentless focus on customer satisfaction, forge deeper connections with their customers, foster loyalty, and drive long-term success in an increasingly competitive and rapidly evolving market.
If you want more retail thought leadership and updates on adaptive retail, follow us over on LinkedIn here.
A big thank you to our new partner-in-retail NORA ~ National Online Retailers Association for supporting our concept and bringing this to life and our event partner BigCommerce for making this happen. We look forward to seeing you at our next event.
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