Since March 2022, retailers have been looking for ways to win over customers despite additional hurdles brought on by the pandemic – from the supply chain crisis to continued blockades to in-person shopping. While conditions may have changed in the last year, shoppers’ demands have not. Now more than ever, customers want brands to offer ease and innovation when it comes to shopping. Retailers are moving towards e-commerce platforms at record-setting rates, providing shoppers with new ways to interact and buy.
As the holiday season wraps up, it’s time to look ahead at the five trends we think will define 2022. Take a look at how brands can flourish in a post-pandemic world, here:
TIMES OF CRISIS CALL FOR CREATIVITY
During 2021 the world faced new struggles managing the growing supply chain crisis, which caused massive disruptions across all industries. Slowing down the ordering process and making it harder for retailers to pinpoint the exact amount of inventory needed were just some of the issues necessary to overcome. Consumers faced more than 2 billion out-of-stock messages while shopping online in October, an astoundingly high number during the pre-holiday shopping season. Brands can look to automation for help; from labor shortages and hiring struggles to outdated filing systems, automation can take retailers to the next level. This market, currently projected at roughly $200B, is up for grabs in 2022.
THE CIRCULAR ECONOMY BECOMES RETAILS ANSWER TO SUSTAINABILITY
Two-thirds of Americans prefer eco-friendly brands, and despite the success of those such as Patagonia, Seventh Generation, and Dr. Bronners, other retailers have been slow to respond. 2021 was undoubtedly the turning point for retailers, with efficient, tech-driven delivery options more accessible than ever before. Big, innovative retailers such as Ikea have committed to using 100% sustainable materials, while Amazon has changed its packaging to recyclable materials further signaling that the shift towards sustainability is transitioning from words to action and aligns with business objectives.
BUY NOW, PLAY LATER…RETURN NEVER
The monumental shift toward e-commerce during 2020 had companies scrambling, but 2021 gave them an opportunity to develop their offerings in a more sustainable way. Buy Now, Pay Later apps – or BNPL – swiftly rose in popularity amongst customers in 2021. Yet, hidden fees and drawn-out processes associated with returns may rebuff potential customers in 2022. While over 50% of shoppers note size as the main reason for returning an online purchase, technology exists to solve the problem. MySizeID, an easy-to-install widget, gives customers the option to leverage their phone’s sensors to ensure they always get the right fit for themselves and their family members – retailers would do well.
SHAREABLE MOMENTS ARE GOOD FOR INSTA AND THE BOTTOM LINE
As lockdowns are lifted, and life returns to normal, retailers have a unique opportunity to deploy experiential marketing and create brand affinity. What does that mean? In short, immersive, instagramable experiences that often beg to be shared – think Krispy Kreme’s Sweet Incentive, which provided a free donut for all of its vaccinated customers with proof of vaccination. Interactive, experiential marketing isn’t new, but after more than two years of social isolation, those experiences can have an especially powerful effect.
OMNICHANNEL INTEGRATION WILL DEFINE THE WINNERS OF 2022
Before Covid, a paltry 30% of retailers offered a buy online pick up in store option, and a meager 7% offered customer support over video chat. Since Covid, customers’ expectations have grown, and while price and convenience are still key considerations, consumers are increasingly demanding a holistic customer experience. A 2021 survey found that businesses that took on an omnichannel transformation were highly successful. From Nike and Decathalon’s sales surge to Nordstrom’s smart bet on omnichannel, which allowed them to avoid the bankruptcy many of their peers are facing today, a new standard of omnichannel retailing is upon us. Those that invest in the service will keep up with consumer expectations, while those that ignore it are set to lose out just as they probably did in 2020 and 2021.
2022 will be a year of continued growth and proactive anticipation of the return of in-store shopping. Those retailers that embrace this year’s trends will be well-positioned to win an unprecedented number of up for grabs customers and future-proof themselves for years to come.
