Retail Analysis
T
he pandemic has transformed the nature of work - with more employees working from home than ever before - but it has also changed the face of retail. Consumers have now
experienced a prime omnichannel experience where they can shop either in-store or online, choosing a time and place that suits their needs. Yet the shift to online retail began well before the outbreak of the
pandemic. As recently as 2019, 13% of goods were bought online globally, up from 6% in 2014. The impact of the pandemic vastly accelerated a trend that was clearly in occurrence, and we saw the size of the e-commerce industry grow exponentially during the pandemic by the equivalent of three years of growth in just a few months. This is all well and good for fast adapting e-commerce and fast fashion brands, but how has this shift in consumer demands altered sustainable shopping practises?
The Rise of Conscious Consumerism As e-commerce demands have risen, so has the rise in conscious consumerism. There are now a high proportion of purpose-driven consumers that choose products and brands based on their own values, and this is often centred around sustainability. Some consumers even say they would be willing to pay an average premium of 70% for sustainability, which is roughly double the premium from 2020. Yet conscious consumers are no longer demanding bamboo straws
and refillable cups. Today’s consumers are much more sustainably savvy; they need to know every step their item takes, such as where the materials are being made and if they’re sustainably sourced, or a product’s carbon footprint created across the world. The retail industry as a whole generates a huge amount of waste and pollution, from the manufacturing and shipping of products to the use of landfill for unsold inventory. Whilst some retailers have made significant changes to their processes in order to minimise their impact on the environment, there is always more work that can be done. Hot on the heels of COP26 at the end of last year, and with
constant news coverage and papers about the effects of climate change, it is no surprise that consumers are becoming more conscious. Not only this, the effects of social media have meant that consumers are demanding transparency: brands can no longer hide from their conscious customers. The past 18 months have solidified sustainability’s
shift from a ‘nice to have’, to a fundamental part of a brand’s identity, one which the consumer expects to see as standard. There is now an expectation for brands to be transparent on how they are being sustainable throughout their entire supply chain, from how it’s made to how the products get to their homes. Yet when brands are transparent with their
sustainability efforts, this not only endears new customers to join, but also increases the likelihood of brand loyalty amongst consumers, as they now trust and relate to that brand. In other words, when conscious consumers love brands, revenues flow.
6 | April 2022
www.pcr-online.biz
Hybrid Retail Solutions Hybrid retail is the combination and use of both virtual and brick and mortar interactions. With hybrid solutions, it has now become easier than ever for consumers to seek out and engage with sustainable brands. Retailers can show every step an item takes in the omnichannel
cycle, before it reaches the consumer, and the impact it has had on the environment. This includes sustainable shipping options, streamlined management of deliveries and returns, and the avoidance of packaging waste. However, these are now all staples of sustainable e-commerce that
are expected from consumers. Brands must start looking for more unconventional solutions that showcase the future of sustainable shopping, pinpointing the retailer as technologically innovative and sustainable. For some this would be the solution of virtual shopping. The metaverse has been showing up on social media and in the
tech community ever since Meta announced its new branding and focus at the end of 2021. Yet immersive environments such as virtual shopping have been around as fledgling solutions since well before the pandemic. Massive leaps in innovation, with technology has created a varied mix of virtual environments and platforms, which people can use for multiple purposes. Some aspects are already popular with retailers, with augmented reality and virtual reality starting to play a big role in many retailers’ campaigns. This is only projected to increase in the coming months; according to Goldman Sachs, the global market for AR and VR in retail will reach $1.6 billion by 2025.
Filling the CX Gaps Virtual reality in retail can be used to plan, design, research, and even enhance the customer experience. It offers several benefits when considering how to appeal to consumer wants and needs, especially when they’re constantly changing. Yet, relying on completely virtual environments can create certain holes in customer experience (CX), resulting in a need for more human interaction and personalisation. Over the past two years, e-commerce and virtual solutions have
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