Innovation holds utmost significance in todays retail environment

The global economic doom and gloom have brought an upside to retailing in the UK. Brands understand they have to work harder to keep their customers and they have to find more ways to engage with them.

Online digital retail is here to stay, we see some of our retail stores disappearing through accusations. For these brands, the pandemic was the perfect match, not the perfect storm. In turn, the economic crisis has also instigated collaborations (sometimes unexpectedly) that have enhanced the brand's retail positioning and experience.

For many brands and consumers who are looking for new experiences, online is not the only channel, physical retail is still essential as ever before. A retail store is just one channel. It is one way of expressing whatever it is the consumer understands the promise of a brand to be, and whatever the consumer feels the experience is going to add to his/her life.

Retailers have also passed the point of one size fits all. These days, sales are at the fingertips of every possible consumer. Who needs mannequins today? We've got lifestyle pics, influencers, social media, etc.

• 67 per cent of consumers say that relevant and personalised content increases their trust in a brand.
• 73 per cent say that a bad personalised experience decreases their trust in a brand.
• 37 per cent of retailers say that poorly integrated tech is the main barrier to personalisation.

Retail brands are being forced to evolve to a consumer base that is ever-yearning for something different. The norm of yesterday where a brand goes through a basic facelift will not be sufficient for today's consumer.

How innovative and creative a brand is will determine its survival.

This is a must across all areas. But it isn't necessarily about big dollars, it's about big ideas, originality and how innovative they are in enhancing their customer value. In a noisy world,

it's never been more critical to connect with audiences and lock in sustained loyalty.

By 2040, 95 per cent of all purchases will be done via e-commerce, according to Nasdaq, with an estimated 72 per cent of consumers being more eager to buy from digitally innovative retailers as reported by Growcode.

To become innovative in retail today, we believe brands fall into categories.

Innovative transformers are brands that are capable of adapting to emerging technologies and incorporating them into their strategies. Despite their scepticism about the true impact of technology can have on their competitive advantage, they recognise the exponential rate of technological change.

However, in part, certain aspects of their business operations still remain largely unaffected by these technological advancements. Innovative transformers aim to expedite their digital transformations to capitalise on current challenges and technology trends and are converting them into new opportunities. Consequently, some of them are surpassing their competitors and catching up with industry leaders.

In the realm of technological advancements, one notable trend in 2023 is the proliferation of AI, which stands as the most disruptive force.

Some retail transformers are acknowledging the implications of AI. It has the potential to enhance productivity, accelerate product launches, facilitate age verification at self-checkouts and click-and-collect sites, and even revolutionise the creative process. Its influence on retail continues to expand rapidly, particularly evident in personalised experiences. For instance, AI can leverage browsing and purchase history, as well as social media activity, to provide customers with tailored product recommendations.

Re-innovators are visionary entities that fully embrace the transformative insights gleaned from innovative transformers and embark on a comprehensive reinvention that permeates every facet of their organisation. Anchored by a robust digital core and new ways of working that establishes a culture and capability for continuous reinvention.

Their mission is to facilitate frictionless retail, streamlining the purchasing process to offer unparalleled convenience to consumers. With the increasing demand for quick, convenient and accessible retail, consumer's expectation for a seamless and frictionless experience, means that retailers will need to adjust how they deliver products, services and brand engagement. The effective delivery and communication of a clear value proposition across diverse marketing channels become imperative.

A joined-up omnichannel retail strategy is critical to how customers see and perceive brands, from exploring autonomous delivery and fulfilment, cutting out the middleman and building connections to product trailing ("try it before you buy it").

However, it is crucial to recognise that consumers do not think in terms of channels; they aspire to shop across all touch points. The triumphant retailers of the future will transcend the confines of an omnichannel mindset, to an entirely "frictionless" customer experience that caters to consumers wherever they are. The ability to innovate migration from one channel to another will be pivotal in this transformation.

Innovative pioneers are those who invest time and effort into comprehending the unique technological advancements that can be harnessed to meet their customers' specific needs recognising cultural consumer habits and attitudes. Such as those in middle eastern markets to those in European markets.

They adopt a holistic approach, recognising the intricacies of their target audience and prioritising a customer-centric mindset across all touch points. These innovative pioneers actively create hybrid shopping experiences and seamless shopper journeys, collectively referred to as PhyGital retail.

While a significant proportion of consumers now prefer to make their purchases online, it is important to acknowledge that the allure of the traditional physical store experience has not diminished. The Phygital essence lies in effectively integrating digital tools with traditional retail practices to offer customers the ideal amalgamation (PhyGital).

By leveraging technology, the purchasing process becomes more streamlined, while simultaneously preserving the tangible elements of entering a physical store, engaging with products firsthand, and interacting with a "real" person maintained to enhance the overall experience.

These traditional shopping actions are essential in enhancing the overall customer experience and fostering loyalty. The enterprise of all these innovators is sure to be felt in the coming years. However, it is essential to acknowledge that the expedited shift towards online retailing has left many customers yearning for a deeper, more tangible connection with brands in some regions of the world.

As a reputable retail design agency, we have consistently emphasised the significance of experience across all aspects of retail design, a concept that isn't new. Humans are social beings and it is crucial to acknowledge that customers still derive enjoyment from visiting physical stores, however, their expectations have reached new heights.

In this new retail landscape, innovators face an added complexity in order to be the best in class, which is not only creating efficiency but creating engagement that is compelling and builds on return journeys. It is fundamentally about understanding who the end consumer is, how they engage with you the brand, and why they do so.

It means that at each stage of the customer journey, whether that's browsing on social media, entering a retail store or shopping on a retailer's website, customers have a blend of personalised shopping offers and experiences that are fully cohesive. A full cohesive journey that transcends mere transactions, regardless of the channel through which it is delivered.

It is important to remember that the allure and success of a retail environment does not solely rely on technological glitz and glamour but rather, it stems from the interactions and the physical space itself, where the true magic unfolds.

The innovators who can identify and curate physical retail environments that evoke emotions, beguile the senses and weave captivating narratives will be the ones that achieve significant success. At Brave Environments, we aspire to play a pivotal role in crafting your next chapter. We firmly believe that the destination of any environment is defined by the customer experience, akin to a captivating story. It is the intangible essence that binds us all and enables us to perceive things in new and transformative ways within this evolving new retail world.

The future of stores will primarily be to deliver "what Amazon can't" in the form of an elevated experience, brand story and provenance, infused with emotion and garnished with high-value, data-driven human interaction.

A survey by Raconteur revealed that 81 per cent of people are willing to pay more for experiences that elevate their shopping experience.

According to the great Maya Angelou: "People will forget what you said, people will forget what you did, but people will never forget how you made them feel."

By Nadeem Moghul https:www.linkedin.comcompanybrave-environments

Nadeem has over 20 years of retail design and brand experience, having worked with some of the top branding agencies around the world, contributing to a creative culture involving teams of multi-disciplinary designers and strategists. Bringing a wealth of experience in all aspects of design, his knowledge extends to implementing innovative, creative and effective 3D environmental design solutions, developing new and inspiring approaches to a brief with the goal of producing an integral brand experience. Bringing a wealth of experience in all aspects of a customer’s interaction with effective branding and marketing with a brand. Nadeem has lead many projects that have been entered into and won industry standard awards around the world.

Nadeem is now the founder and creative director of Brave Environments. A design agency driven by human behaviours, creating environments for retail brands to connect with their customers. Our aim is to help retailers create 'fans' and not just 'consumers'.