10 trends for the future of retail

2022 is the year for retail to reflect and take on new realities with their consequent efforts and opportunities to explore.

After all the changes in shopping habits, consumption and values derived from the pandemic, 2022 is the year for retail to reflect and take on new realities. This is what the report Trends 2022 in the Retail sector applied to the business model, published by Loop New Business Models, points out.

This report analyzes the ten macro trends that will mark the future of retail and have the potential to generate new opportunities around the business model.

10 trends for retail in 2022

1.???Ultra convenience in retail. Same coffee for everyone?

Businesses supported by ultra-fast delivery platforms or services have been developing for several years. For this reason, the use of these services is a key element to be considered in retail to enrich the business.

Thus, for example, in a value product sector, the experiential factor is relegated in favor of solving a problem or responding to a forgotten commitment. In sectors where needs have a high level of frequency, with a short time to be satisfied, such as food, immediacy becomes more evident.

2.???Business sub-models as enhancers of traditional retailing

Changes are taking place in consumer purchasing and usage habits that are driving new and different business models. From this perspective, retailers need to consider how these models can complement the traditional business.

If the current success of the business lies in the shopping experience under the prescription of the sales clerk and the conversion in physical store. It is necessary to think about models of high product customization or on-demand models that do not cannibalize the offer.

Finally, if the business is developing technology at an accelerated pace, such as electronics, it is possible that customers who want to be always up to date will find a model such as leasing more attractive, while those who value ownership will continue to be interested in the traditional ownership model.

3.???Retailer retailing: opportunity to develop business excellence

The pursuit of differentiation is associated with a search for more and better service experiences for consumers around categories or star products, which encompasses a trend linked to the business model and the relationship between suppliers and retailers, consisting of an evolution at the level of intimacy that allows:

- To the retailer: to offer in the best conditions a brand, a philosophy, a space and guidelines on the offer.

- To the supplier: a clear monetization of his knowledge, by improving the management between the back and the front office, always under a constant updating.

4. Retail with philosophy vs. 'darketization' of retailing

It is clear that the current context has significantly boosted home delivery and under this concept, ultra-convenient platforms (both for food and home shopping) are here to stay.

How should retail approach the fight or coexistence with this type of platforms? Without having a clear answer, it is necessary to reflect on the business model. And a counterposition to that of the brand is more necessary than ever if it does not want to be whitewashed in the short or medium term.

All this review must start with that which is distinctive of the brand, that which positions it: a clear philosophy.

5.?Retailers as the new Google: data exploitation as a business sub-model.

One of the most relevant news originating outside the retail ecosystem, and which in turn has a possible impact on it, is the elimination of third-party cookies by Google in 2023. In a nutshell, what this elimination puts in value are all the primary sources of individual information, which will become one of the few ways to identify people, tastes, interests, behaviors.

The actors who by dimension best control this information are those who enable the transaction. Therefore, a retailer with a good database can become an attractive business for brands of all kinds. Individual identification will allow personalized advertising, offers, brand proposals, etc.

6.?Circularity, zero point of the business model

The time to consider working with circularity has come, from the very structuring of the business model and integrating the end customer from the moment he/she is thinking of making a purchase. In fact, a circular proposal can be the differential reason why the customer decides to buy, and not the competition.

As the link between the product and the consumer, retailers have a unique opportunity to propose sustainable consumption alternatives that can be economically maximized. It is also a good opportunity to work together with manufacturers and service providers to propose new, more profitable ways of working and consuming.

7. Omnipresencia: evolución natural del ????‘customer journey’

Retailers focus on the customer journey and the frictionless structuring of each step in the different channels. But have they considered where else, beyond the customer journey, the brand can bring value to the customer?

With this in mind, it would be appropriate to create retail-customer relationships that go beyond the purchase process. To develop them, it is key to have a deep knowledge of the customer, their preferences, hobbies, as well as potential consumption trigger events. All this under the concept of data intelligence, to help understand their motivations, desires, needs and predict their behavior.

8.?Channel harmony: a retail masterpiece

The online business has become stronger, but also in many cases the in-store shopping experience is crucial. This casuistry leads to the question of which omnichannel strategy best fits each business model. This combination is unique for each retailer.

In addition to representing the brand DNA, it has to enhance the business model and respond to the strategic interests of the company. All this adapted to the customer's shopping habits and taking advantage of the best of the physical-digital world.

8.?Customer incentives, the success of sustainable models

When we talk about sustainability, we must take into account that, in most cases, success depends on one actor: the end consumer.?For this, it is relevant to consider how the customer will be motivated and rewarded to develop this central role in the circular economy models section.

It is also appropriate to communicate these benefits from the moment the customer is thinking of buying. There will come a time when, in order to establish lasting relationships with the customer, it will be just as important to reward their consumption as it will be to reward their participation in circular economy models.

10.Polarization of the business: creating a consumer philosophy

Due to the easy access to products and services by the customer, today more than ever retail must take a pause and reconsider its role, what value it is bringing to the customer. There is no better defense than a philosophical position on which to build the business.

This position not only allows to create value through the offer of products and services, but also helps to build the market, spreading and raising awareness about the advantages of following it.

Miguel ángel Povedano