From Virtual to Physical: Trust-Centered Brand Building for Marketers

I have always believed consumers want to see touch and feel products. If you think about modern brands, they have struggled from both the D2C and Retailer perspective. D2C have gone all in on eCommerce while traditional brands have tried to establish an omnichannel engine. Catalyst Group, the JV between Simon Properties and Authentic brands ia the case in point.

?Present day, D2C brands like Warby Parker, Bonobos, Peloton, Casper and All Birds are as omni-present in the retail space or malls as is Brooks Brothers or Zara. What is this telling us?

?It’s sending us a few signals. The first is people want to feel the real. It’s also telling us that consumers want to trust. These are two dynamics that have been lost in the past two decades. They are now back en vogue.

First, there will be a resurgence of physical retail and the shift to what we call "Trust-Centered Brand Building."

In a world increasingly influenced by AI and digital platforms, trust has become a critical factor in consumer decision-making. The rise of AI-generated content, deepfake technologies, and impersonal algorithm-driven advertising has left consumers questioning the authenticity of what they see, hear, and experience online. This erosion of trust is driving two fundamental shifts in consumer behavior and marketing strategy: the resurgence of physical retail and a pivot from performance-driven marketing to trust-centered brand building is my first theme.

At the center of all of this is the erosion of trust in the digital era. We are nearing an apex and it isn’t good for business. Or for the consumer.

AI and social media have redefined how consumers interact with brands, but not without consequences. The proliferation of AI-generated content has made it harder for consumers to discern what is real and what is fabricated. For example, deepfake videos misusing the likeness of trusted individuals, such as medical professionals, to promote counterfeit products have raised alarms about the reliability of digital information. (The Times)

The sheer volume of targeted ads and algorithm-driven content has led to consumer fatigue and skepticism. According to the Edelman Trust Barometer, trust in digital advertising has declined to just 14% globally. I’LL SAY IT AGAIN…14%! If that doesn’t signal a problem for our industry what does?

Theme two is the belief that there will are at the start of a growing demand for more authentic, tangible interactions. This loss of confidence in digital platforms is reshaping how consumers and businesses think about retail and marketing.

So back to that resurgence of physical retail; In response, physical retail is experiencing a renaissance. Consumers are gravitating back to brick-and-mortar stores to reconnect with products and brands in ways that feel real. In-person shopping allows consumers to see, touch, and test products, providing a level of assurance that digital platforms often cannot replicate.

For example, 60% of British fashion purchases still occur in-store, prompting online retailer Sosandar to plan the opening of 50 physical locations. (The Times) Target, Uniqlo and even Toys-R-Us are coming back to the physical realm. Similarly, independent jewelers are establishing boutiques to offer personalized experiences, as trust and loyalty is paramount. (Financial Times)

Physical retail also allows brands to create immersive experiences that go beyond transactions. Flagship stores like Nike’s House of Innovation are designed not just to sell products but to showcase a brand’s ethos, enabling consumers to form deeper emotional connections. And Starbucks has gone all in with their Roasteries and global expansion at a clip of eight new stores per week.

The overarching theme is the shift to trust-centered brand building.? The resurgence of physical retail is part of a broader transformation in marketing: the pivot from performance-driven strategies to trust-centered brand building.

Performance marketing, with its focus on clicks, impressions, and short-term ROI, has been a dominant force in recent years. However, its reliance on algorithmic precision often leads to impersonal and transactional experiences, which fail to foster long-term loyalty. I try to stay away from the term “storytelling” or “experiential” but that is what matters if you want to build long term loyal customers in any business.

In contrast, brand marketing emphasizes storytelling, values, and emotional resonance. As the Edelman Trust Barometer reveals, 81% of consumers are more likely to buy from brands they trust. This is why leading companies are reallocating resources to brand-building efforts that prioritize authenticity and connection over immediate returns. According to the World Federation of Advertisers, 62% of CMOs plan to increase investments in brand-focused activities over the next five years. (WFA Global Marketer Outlook)

Brands like Patagonia have demonstrated the power of this approach by aligning their values with consumer expectations. Patagonia’s commitment to environmental causes has made it a symbol of trust and loyalty, creating an emotional bond that transcends mere product sales.

The Role of Physical Retail in Building Trust: Physical retail is uniquely positioned to support this shift to trust-centered branding. By offering tangible experiences and personal interactions, brick-and-mortar stores serve as extensions of a brand’s authenticity. For instance, Starbucks’ community stores are designed to engage with local communities, reinforcing the brand’s commitment to social responsibility and building trust at a grassroots level.

Moreover, physical spaces allow brands to tell their stories in immersive, memorable ways. Whether it’s through experiential pop-ups, interactive displays, or simply a well-designed store layout, these touch points help consumers connect with brands on a human level, countering the impersonal nature of digital transactions.

So where is the role of AI in all of this? Right now it’s adding to the marketers challenges in managing all of their assets.

The industry is obsessed with media and filling impressions with “stuff.” There simply isn’t enough focus on crafting the message. This is where AI needs to focus. But the first step is creating an AI Marketing Model that marketers can universally embrace. That’s our obsession.

Because of this acceleration of asset creation, AI and digital platforms continue to evolve primarily using gen AI. The challenges they pose to consumer trust are become more apparent.

In response, the combination of a coordinated marketing efforts, along with the physical retail resurgence and a shift to trust-centered brand building is reshaping the future of marketing.

By embracing integration, leveraging AI tools like mktg.ai, developing messages that are authentic, create an emotional connection, and tangible experiences, brands can position themselves as beacons of trust in an increasingly uncertain world. This strategy not only meets the immediate needs of skeptical consumers but also lays the foundation for enduring brand loyalty in the years to come.