Online Fashion Trends: How Retailers Turn 'Buzzwords' Into 'Benefits'
'Retail will never be the same again.?
We have heard people repeat this phrase, but this time around, we can say with certainty, that the technological, ecological, and economic shifts over the past years will have made a lasting impact.
Attending the huge retail get-together Shoptalk 2023 in Barcelona, from May 9-11th, we saw the contours of the new directions that the retail industry will embark on in the coming years. Not only did we have many business meetings with exciting companies that will be shaping the future of retail. We also put our ears on the ground to learn what’s on retailers’ minds now.?
Here are 3 buzzwords, we heard getting thrown around –?at what retail companies are planning to do around them.?
Sustainability
The threats of climate change, dwindling resources, and pollution have become indisputable. It prompts our society to reconsider our production and consumption habits. This perspective shift is fueled by growing customer demand for sustainable and eco-friendly products.
For fashion retailers, the challenges lie in reducing their carbon footprint and conserving natural resources. Not only does this cater to Gen Z's and Millennial consumers' preferences, who strongly desire more sustainable products. It also has become a market factor across all generations.
Over 70% of U.S. Customers Expect Retailers to Become More Sustainable (Source: First Insight, 2021)
However, retailers must strike a balance between increasing sustainability and controlling costs for customers. Studies reveal that pricing is a complex issue with many contradictions. Many customers claim to be willing to pay more for sustainable products. Yet, at the same time, high prices remain one of the primary reasons for not purchasing them, especially during times of economic downturn and inflation.
Retailers also must extend the journey towards sustainability beyond their own products and address the operational side of their businesses. This includes improving delivery chains and redesigning refunds and returns processes to satisfy both customer and merchant demands.
During Shoptalk, Zalando and 达能 stressed the importance of genuine sustainability efforts, rather than investing solely in publicity or displaying environmental certifications on product pages. Achieving true sustainability demands transparency, authenticity, and a company culture shift from top-level management to everyday business operations.
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Personalization
Customize comes from the customer. At least in retail, it does. The industry has come around to the fact that it has become more critical than ever to customize retail services so they perfectly match a shopper's personal preferences, habits, budgets, and physical and cultural attributes. ? ??
Personalization in retail has the power to make customers feel special and understood, leading to increased conversion rates, customer loyalty, and higher lifetime value. To achieve this level of personalization, retailers must collect and analyze customer data at every point of the customer journey, from browsing to checkout and payment. This comprehensive understanding of the shopper can then be used to recommend tailored goods and services, cater to their specific sizes and preferences, and reduce return rates with solutions like virtual fitting rooms.
As Robert Gentz of Zalando mentioned at Shoptalk, AI has the potential to facilitate inspiration and spontaneous product discovery, mimicking the experience of physical retail shops in the online space.
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66% of Global Customers Expect Retail Brands to Understand Their Individual Needs (Source: Salesforce Research, 2021)
However, monetizing customer data comes with its own challenges, including regulatory initiatives and privacy concerns. Retailers must ensure their data collection infrastructures comply with privacy and data protection policies. It’s a balancing act.?
Omnichannel?
In today's competitive landscape, companies must be firing on all channels to meet customer expectations. This means being present wherever customers interact with their brand and products. Retailers are generating synergies between online and offline channels, blurring the lines between the two shopping environments. With the pandemic subsiding, brick-and-mortar stores are experiencing a revival.?
Interestingly, even Gen Z shoppers, often perceived as digital-only consumers, hunger for those away-from-home shopping experiences. However, customers expect the same convenience and seamless experience offered by online shopping, including easy payments and personalized recommendations.
89% of Buyers at a Retailer With Optimized Omnichannel Strategies Become Loyal Customers (Source: Loyal Guru, 2023)
To cater to these demands, retailers are exploring ways to connect their physical stores with their online platforms. Integrating mobile phones and data-driven services in brick-and-mortar stores is now a priority for many retailers. Technological advancements in machine learning and augmented reality are opening up new possibilities for enhancing the in-store experience. One example highlighted at Shoptalk by Zalando executives involves customers interacting with generative AI for recommendations and answers to their queries while shopping.?
Additionally, Thierry Gadou , CEO of SES-Imagotag, discussed the concept of local e-commerce, wherein customers can order items online and pick them up at a physical store. This approach streamlines the shopping experience and makes logistics more sustainable and cost-effective for retailers.
The Payment Dimension?
The future of retail will be more sustainable and more personalized –?on all channels. However, for companies to be able to implement this, they must place their processes on new foundations. This also applies to payment processes because they are among the most important interaction points between a brand and its customers. The right payment technology can help to achieve strategic goals in the retail industry.?
But in an age where augmented reality, artificial intelligence, omnichannel shopping, and the Web3 are slowly becoming tangible, the right technology today may be obsolete tomorrow. So for ambitious retailers more freedom and control than simple one-size-fits-all solutions offer them, custom payment solutions are the weapon of choice.?
At trimplement GmbH , we have been building payment software for many years. We know that a custom-tailored e-wallet or payment orchestration solution can offer companies benefits such as:?
Wherever payments are a must, custom payments are an option. And where businesses don’t want to make an impact with breaking news, they are the definitive option.?
Let’s not allow retail always to stay the same.?