TOP 5 RETAIL TRENDS – SHOPFITTING OF THE FUTURE AND THE ROLE OF DIGITAL
by Florian Rotberg | invidis consulting
Consumers shop across channels – whether online or stationary, their preferences are constantly changing. The Top 5 retail trends for multi-channel retail and its impact on digital signage concepts.
Small Store Formats
“Cities are the countries of tomorrow.” This is how the Zukunftsinstitut, one of Germany’s most important think tanks for trend and future research, describes increasing urbanization. A development that also directly affects retail. Availability of building space is very limited in metropolitan areas – new large-scale shopping centers are difficult to realize at least in city centers. Alternative solutions are needed to ensure that people continue to have access to stores.
One of the future store concepts are small shop formats, so-called container solutions, which are operated autonomously and at any location. Especially in high-frequency locations, airports, railway stations or in the entrance area of high-rise buildings, these mini shops can serve as shopping and collection stations for food and Fast Moving Consumer Goods (FMCG).
This is based on a simple, automated principle. On site, customers explore the available range of goods on large-format digital signage displays, select the desired products, pay and collect their purchases 24/7 via pickup points. Alternatively, customers can order in advance by app and then pick up the goods on site (Click & Collect).
Digital signage displays provide information on current offerings, enable context-sensitive (e.g. time-of-day or weather-dependent) promotions and act as a platform for transactions at the point of sale.
Sustainability and above all the avoidance of plastic waste are influencing the purchasing behaviour of more and more consumers. In order to retain these consumers as customers, corresponding offers must be integrated into stores.
However, the provision of unpackaged goods requires dedicated shelving systems for the presentation of goods. Of course, the established functions of packaging must continue to be fulfilled: Protection, dosage, ease of use and communication, whether for product information or for marketing purposes. Accordingly, adapted shelving systems and furnishing solutions are required.
Without digital signage and ESL, plastic-free dynamic product information is almost impossible. Daily updated prices, ingredients, nutritional value, origin and shelf life information must be displayed at the PoS. Information about regional producers is becoming increasingly important for fruit and vegetables as well as at the fresh produce counter.
Innovative product presentation
We live in times of “oversupply of goods”. Manufacturers and retailers must therefore ask themselves: How do I get the customer to consciously perceive and buy goods? With the daily flood of impressions, consumers are exposed to, the answer is hard to find – especially at the PoS.
One approach: to attract attention. What does that mean? Depending on the target group, goods must stand out and be presented as individually as possible. Urban or rural, higlighted or reduced, playful or clean. Flexible, easy-to-configure shopfitting systems enable retailer to customize visual merchandising.
Ideally, the type of presentation even offers added value to the customer. For example, product information should be presented simply and quickly, either via large poster or digitally via displays or interactive ESLs. Value-added information are a list of ingredients, nutrition, allergy information and complementary goods.
Brands vs. Private Labels
Private Labels are very popular with Germans. They are inexpensive, the quality is superb and retailer achieve higher margins. This trend will therefore likely to continue. Nevertheless, retail cannot live without brands. On the contrary, only a good interplay of private label and brands enable retailer to succeed in the brick-and-mortar world.
A win-win situation for everyone is the integration brand showrooms (shop-in-shop areas) for premium goods and services at the POS. A mono-brand store in an exclusive location attracts attention. Fans of the brands can directly buy their must-haves, purchase personalized products or place orders. Manufacturers are given the opportunity to present themselves, implement marketing ideas and promote sales. This, of course, also pleases retailers who create new incentives, stand out in the competition and thus retain their regular customers and attract new ones.
Attracting attention, conveying emotions and ambience as well as displaying dynamic information are the 101 of digital signage applications. Larger digital touchpoints can be seen from a distance attracting attention. Surprising moments with projection and interactive applications like Lift & Learn are also very effective.