Why the rise of the experience economy will transform retail leaders in 2019.

I speak to brands all the time. Some get the way the world is changing and some don't. For leaders in retail time is running out to get on board with the experience economy. By the end of 2019 the decision will be made for them. As more and more leading brands engage consumers with experience, the old school retailer will be in danger of being left behind.

It’s difficult to change a mindset, to rethink your vision, to tear the strategy up and start again but the new face of our economy is calling for retail leaders to do just that. If you think retail is about selling stuff then you need to think again.

We all know the story behind the empty malls and high streets, heck, even online retail is joining in with a recent fall in share prices for the likes of ASOS and Boohoo. And yes, we can see some amazing retail brands out there creating wonderful experience stores but is it enough?

The problem is experience is still seen by some retail leaders as part of the marketing mix, simple PR, or a tactical event. They see experience as part of the business plan but the retail leaders who realise experience is the business plan will be the ones who transform their brands.

Working on experiential projects across the international leisure market, I can see the speed of the retail/entertainment convergence, and let me tell you, it’s fast! In the last few months alone we have spoken to dramatically more retail brands than ever before. And that’s because everyone is still trying to work it out.

What worries me though is that the innovative brand managers, or marketing directors are ready whilst their Board or C-Suite lag behind. They have to convince Boards who just daren’t take the leap.

Maybe this is because some of the retail leaders have become out of touch with the behavior of today's consumer? Maybe it’s because fear holds them back? Maybe they believe the good ol’ days of retail will return… Maybe they just can’t get out of that mindset of selling stuff. What they don't realise, is that by providing experience, the sales of stuff naturally follows.

The attractions industry have got it so right with their ‘exit through the gift shop’ strategy. People want to start with experience and buy the stuff afterwards. The product supports and enhances the experience, it is the physical evidence of their memory making.

What do retail leaders need to be thinking about in 2019?

People have stuff fatigue. We all have too much and we need a good reason, experience, or excuse to buy more, we want product to help us lay down memory.

You have new competitors. Consumer’s leisure time is fluid. Shopping is leisure, sport is leisure, travel is leisure, chilling to Netflix is leisure. It’s all leisure. Your competitor is no longer your competitor, everything a consumer can spend time doing is the new competition.

FOMO is very real. Both for consumers and for retailers. Consumers don't want to miss out on an exclusive or launch. Retailers don't want to miss the opportunity - if one retailer won’t do it, ten others will.

Brands will be created by the consumer. Consumer demand will change the ways brands operate, from Amazon stores, to Google retail experiences, to Uber VR theme park cars. If the way you retail now doesn’t suit your consumers they will change it or kill it for you over time.

Retail leaders, 2019 could be your year, are you ready for it?

Kelly is Strategy & Development Director at Katapult - A Creative England Top 50 company, that create physical and digital guest experiences that amaze and engage your visitors.

www.katapult.co.uk