FUTURE OF
RETAIL
WHAT IS THE FUTURE OF RETAIL?
In 2019, the trend toward hybrid retail continues, with traditional brick-and-mortar establishments expanding their online capabilities, while e-retailers are opening physical store locations. Retailers are emphasizing the in-store environment in a powerful way by orchestrating an immersive shopping experience or what is known as retail theater. At the same time, new and often disruptive technologies are penetrating the online and traditional retail experience.
WHY SHOULD MARKETERS CARE?
Many traditional retail organizations feel that their survival is currently at stake. They are under tremendous pressure to fuse the digital and physical retail worlds. Therefore, understanding what and where the frontier is for retail is imperative. The future involves having the right culture, using innovative approaches and technologies, and having a willingness and the skills to use data to learn from customers.
HOW CAN IT HELP YOUR BUSINESS?
Understanding the pioneering work that is occurring in the retail space will equip retail marketers to position their organizations as disrupters. Many retailers feel that the brick-and-mortar model has become a liability. At the same time, online retailers feel compelled to provide the experience that only a physical presence can provide. The future of retail is neither of these. Instead, it is an intersection of models, each with its advantages, exploiting technology to provide personalized experiences, that will allow retail organizations not just to survive, but to thrive.
IPG Media Lab works with some of the world’s largest brands to drive innovation in media, marketing, and business models. As the dedicated innovation initiative of the UM family of agencies, they’ve worked with companies of all sizes, across numerous verticals. Chad Stoller and Adam Simon of IPG Media Lab discussed the types of conversations they have with marketers around innovation, gave us a behind-the-scenes look at how IPG Media stays innovative, and asked whether one can truly measure innovation success.
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There’s more uproar in the data privacy world: Apple has announced that with their newest update to iOS 14, the previously optional Limit Ad Tracking function (LAT) will now be on as a default. This will force all apps and app developers to ask permission to use a user’s data or track their movement, and they’ll need to opt-in to sharing a unique device code, or the ID for Advertisers (IDFA). As Apple has said on their official iOS 14 info page: “Privacy is a fundamental human right and at the core of everything we do. That’s why with iOS 14, we’re giving you more control over the data you share and more transparency into how it’s used.”
Advertisers use the IDFA to target audiences and measure effectiveness. Just like with the cookie’s demise (as we’ve discussed here), the potential for the IDFA to be limited or disappear completely will hinder the reach and understanding advertisers have over their campaigns. Marketers will not only need to survive without cookies in their diet, but they’ll also need to find new—or in many cases, old—ways to gather audience data to aid in their targeting efforts. It may be best summed up in Apple CEO Tim Cook’s remarks on International Privacy day: "Technology does not need vast troves of personal data stitched together across dozens of websites and apps in order to succeed. Advertising existed and thrived for decades without it, and we're here today because the path of least resistance is rarely the path of wisdom. If a business is built on misleading users on data exploitation, on choices that are no choices at all, then it does not deserve our praise. It deserves reform.” The resources collected discuss a post-IDFA world and what marketers can do to adapt without it.
WHAT IS THE FUTURE OF RETAIL?
In 2019, the trend toward hybrid retail continues, with traditional brick-and-mortar establishments expanding their online capabilities, while e-retailers are opening physical store locations. Retailers are emphasizing the in-store environment in a powerful way by orchestrating an immersive shopping experience or what is known as retail theater. At the same time, new and often disruptive technologies are penetrating the online and traditional retail experience.
WHY SHOULD MARKETERS CARE?
Many traditional retail organizations feel that their survival is currently at stake. They are under tremendous pressure to fuse the digital and physical retail worlds. Therefore, understanding what and where the frontier is for retail is imperative. The future involves having the right culture, using innovative approaches and technologies, and having a willingness and the skills to use data to learn from customers.
HOW CAN IT HELP YOUR BUSINESS?
Understanding the pioneering work that is occurring in the retail space will equip retail marketers to position their organizations as disrupters. Many retailers feel that the brick-and-mortar model has become a liability. At the same time, online retailers feel compelled to provide the experience that only a physical presence can provide. The future of retail is neither of these. Instead, it is an intersection of models, each with its advantages, exploiting technology to provide personalized experiences, that will allow retail organizations not just to survive, but to thrive.
"Few roboticists could have fathomed a few years ago that it would be a retailer who stands the best chance of defining how robots should look, behave and interact with humans, and coordinate with each other. It’s a transformational opportunity for the entire robotics industry, affecting not only retail, but also every industry that needs a fleet of indoor robots to coexist with humans."
Sarjoun Skaff
CTO
Bossa Nova Robotics
Key Stats
ANA Marketing Futures and eMarketer have come together to deliver key stats and forecasts on the trends that will shape the industry for years to come.
Related Content
Want to take a deeper dive into the future of retail? ANA Members have access to brand stories, case studies, and expert webinars you won't find anywhere else.
Driving Consumers Down the E-commerce Purchase Funnel: How to Gauge True ROI
ANA. February 2020.
The shift from brick-and-mortar to e-commerce provides marketers with unprecedented access to consumer data, which if leveraged properly can generate sales growth. Companies can use digital marketplaces or develop their own apps to create experiences that drive purchase intent. Using aggregated data, marketers can create more customized advertisements and promotions that drive conversions.
Creating Retail Traffic Through Intelligent GPS Data Customer Mapping
ANA. November 2019
Aldi, a Danish supermarket, used geo-location targeting to strategically identify where its shoppers lived. It then used that data to determine if its printed retail flyer campaign was reaching the right consumers. By utilizing geo-location technologies, Aldi was able to achieve greater targeting efficiency and generate savings.
What the Future of Retail Marketing Has in Store
ANA. December 2019
How will shopping change in the future? Much like how it always has, but smarter, easier, and more seamless — all stemming from the ease of automation and AI. Despite the increasing clout of social media and digital marketing, physical retail stores aren't a thing of the past but a vital window into how marketing will be practiced in the future.
Download Now!
For the first time in decades, major retailers are being forced to reassess their business model, and create unique, engaging experiences to bring customers back to brick and mortar. Brands must invest in in-store experiences and customer relationships to thrive in this new market.
ANA Marketing Futures spoke to marketers across the industry to weigh in on what the future holds for retailers and CPG brands alike, and created a guide to help brands master the omnichannel customer journey, and elevate the in-store customer experience.
Download the full report today!
Sarjoun Skaff
CTO
Bossa Nova Robotics
"Few roboticists could have fathomed a few years ago that it would be a retailer who stands the best chance of defining how robots should look, behave and interact with humans, and coordinate with each other. It’s a transformational opportunity for the entire robotics industry, affecting not only retail, but also every industry that needs a fleet of indoor robots to coexist with humans."
Key Stats
ANA Marketing Futures and eMarketer have come together to deliver key stats and forecasts on the trends that will shape the industry for years to come.
Related Content
Want to take a deeper dive into the future of retail? ANA Members have access to brand stories, case studies, and expert webinars you won't find anywhere else.
Driving Consumers Down the E-commerce Purchase Funnel: How to Gauge True ROI
ANA. February 2020.
The shift from brick-and-mortar to e-commerce provides marketers with unprecedented access to consumer data, which if leveraged properly can generate sales growth. Companies can use digital marketplaces or develop their own apps to create experiences that drive purchase intent. Using aggregated data, marketers can create more customized advertisements and promotions that drive conversions.
Creating Retail Traffic Through Intelligent GPS Data Customer Mapping
ANA. November 2019
Aldi, a Danish supermarket, used geo-location targeting to strategically identify where its shoppers lived. It then used that data to determine if its printed retail flyer campaign was reaching the right consumers. By utilizing geo-location technologies, Aldi was able to achieve greater targeting efficiency and generate savings.
What the Future of Retail Marketing Has in Store
ANA. December 2019
How will shopping change in the future? Much like how it always has, but smarter, easier, and more seamless — all stemming from the ease of automation and AI. Despite the increasing clout of social media and digital marketing, physical retail stores aren't a thing of the past but a vital window into how marketing will be practiced in the future.
Download Now!
For the first time in decades, major retailers are being forced to reassess their business model, and create unique, engaging experiences to bring customers back to brick and mortar. Brands must invest in in-store experiences and customer relationships to thrive in this new market.
ANA Marketing Futures spoke to marketers across the industry to weigh in on what the future holds for retailers and CPG brands alike, and created a guide to help brands master the omnichannel customer journey, and elevate the in-store customer experience.
About ANA Marketing Futures
Knowing that marketers are increasingly challenged in their efforts to keep up with the latest trends and technologies, the Association of National Advertisers (ANA) tasked itself with creating a program designed to help marketers anticipate—and prepare for—the future of marketing.
ANA Marketing Futures is what emerged. With a focus on innovative topics and emerging trends, ANA Marketing Futures provides resources that will influence and inform via member cases, research studies, and insight from industry innovators. Check back often to learn about emerging trends and become inspired to take steps toward the growth of your business.
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Email: marketingfutures@ana.net
