Trends shaping retail right now

I’m going to be honest, I am sitting by a pool in Bali writing this while having a cocktail, waiting for our Gojek to deliver our pizza. My husband is feeling poorly (Man-flu picked up on the plane), so we are staying in tonight.

There are a few trends that are being amplified through collaborations and partnerships which I want to cover in this edition of the Xfiles Unedited. Things that have caught my attention which are bringing to life key trends in brings to life Adaptive Retail, my new philosophy.

Three key retail trends to discuss

These aren’t all the trends worth watching, but three that I think are critical to be considering as part of any retail strategy in 2024 and beyond.

#1. The rise of True Gen: The first generation of true digital natives

These are the first true "digital natives", growing up with the internet, social media, and mobile technology as a core part of their lives from birth. This has shaped their behaviors, attitudes, and consumption patterns.

Gen Z is pragmatic, analytical, and values authenticity and truth. They are less idealistic than previous generations due to growing up during economic stress and global challenges. They prioritise stability, job security, and saving money and embraces diversity, individuality, and fluidity in gender norms and identities.

• Gen Z's search for truth and authenticity means companies need to be transparent and genuine in their marketing and branding efforts.
• They expect seamless online experiences and prefers engaging with companies through digital channels and influencers.
• Companies must adapt to Gen Z's values around diversity, inclusivity, and social/environmental consciousness to resonate with this generation.

The rise of Gen Z represents a significant cultural shift driven by their unique experiences growing up in a hyper-connected, fast-paced world.

#2. Social Currency: Resonating through influencers, connections and nostalgia

The concept of "Social Currency" for retail refers to the ability of branding and concepts that resonate with consumers on an emotional level, fostering a sense of connection and shared experiences, that can be socially shared and discussed.

• Tapping into Collective Memories: Nostalgia for example, taps into collective cultural memories and experiences that transcend individual consumers. By evoking feelings towards beloved products, trends, or pop culture moments from the past, brands create a shared emotional resonance that consumers can bond over and discuss within their social circles.
• Fostering Social Sharing and User-Generated Content: Brand connections often inspires consumers to share their own memories and experiences related to the brand or product on social media. This user-generated content and social sharing amplify the campaign's reach and reinforce the emotional connections being made, essentially providing "social currency" for consumers to engage with the brand and each other.
• Leveraging Influencers and Cultural Touchstones: Influencer marketing that taps into pop culture icons, trends or artifacts and this can be highly effective in building engagement, conversion and raving advocates. These cultural touchstones already possess immense "social currency" and emotional resonance that brands can leverage to connect with consumers on a deeper level.

#3. Seamless fusion: Analogue – Digital

The integration of physical (analogue) and digital channels are essential to creating a unified and cohesive customer experience across all touchpoints, whether they are shopping in-store or online. The specific ways these concepts have delivered seamless fusion includes:

• Unified Data and Systems: To achieve this these concepts integrate their backend systems and data across physical and digital channels. This enables them to have a unified view of customer information, preferences, and behavior, regardless of the channel used.
• Personalisation and Contextualisation: By leveraging unified customer data, these retailers can deliver personalised experiences and contextually relevant content, recommendations, and offers to customers across all channels, both online and in-store.
• Seamless Transitions: Customers can start their journey on one channel (e.g., researching online) and seamlessly transition to another (e.g., purchasing in-store) without any friction or loss of context. Features like "buy online, pick up in-store" or "endless aisle" enable this seamless transition.
• Immersive In-Store Experiences: These concepts are enhanced with digital technologies like interactive displays and digital integration to create immersive and engaging experiences that complement the online experience.
• Unified Customer Profiling: By capturing customer data from both online and offline interactions, retailers can build comprehensive customer profiles, enabling them to understand and cater to individual preferences and behaviors across all channels.

So what has caught my eye which brings these trends to life in a new and unique way?

#1 TikTok and Pinterest team up with Amazon for seamless shopping

Imagine scrolling through TikTok [my preferred social media channel] or Pinterest and being able to buy that cool gadget, shoes or item you just saw without leaving the app. Well, that's now a reality.

What's the big deal?

TikTok and Pinterest have joined forces with Amazon to make shopping a breeze. Here's the scoop (1) Users can link their social media accounts with Amazon and (2) Amazon ads on these platforms will show real-time product info. This is  a prime example of social commerce in action leveraging all the three trends.

How does it work?

It's pretty simple. A customers connects  their TikTok or Pinterest account to Amazon, and voila! You can shop directly from ads in your feed. No more jumping between apps or websites. Amazon's working with these platforms like they do with Facebook and Instagram. They're filling ad spaces and making it super easy for customers to buy stuff.

What's in it for the customer?

It's all about making life easier. Just as we know there is a correlation between dwell time in a physical store, the longer you are in an app, interreacting with it, the stronger the relationship with it and whether you're watching funny videos or exploring new content, you can now shop seamlessly with just a few taps. The shopper will see real-time prices, Prime eligibility, and delivery estimates right there in the app. It's shopping made simple.

What does this mean for brands?

This is huge for businesses who are on Amazon. Perhaps not so for those that aren’t. They can now reach shoppers where they are already hanging out online. It's like setting up shop in the middle of a bustling social media party so to speak.

Fahad Sajjad, an Amazon expert, says that brands can now track how well their ads are doing more accurately. They might even team up with influencers to showcase their Amazon products. Joanna Williams, another industry pro, warns that brands need to get on board with this trend. If they don't mix e-commerce with fun content and community vibes, they will get left behind.

What's the impact?

• Shopping made easy: This new feature is all about convenience. Now, you can check out Amazon products, see prices, and buy stuff without leaving TikTok. It's like having a mini Amazon store right in your social media app!
• Social shopping on the rise: Amazon's jumping on the social commerce bandwagon big time. They're tapping into TikTok's huge user base, especially Gen Z. It's a smart move to stay relevant in the ever-changing world of online shopping.
• New opportunities (and challenges) for sellers: If you're selling on Amazon, this is your chance to reach more people through TikTok. But heads up - it might get more competitive. You might need to up your game with clever ads and team up with influencers to stand out.
• How will users react?: While easier shopping is great, some might not love seeing more ads in their feed. It'll be interesting to see how this affects people's TikTok experience. I for one will not enjoy it…but let’s see how much it impacts my shopping.

Overall, this team-up is a big deal in the world of social shopping. It could really change how we discover and buy stuff online.

Amazon's not just working with TikTok - they're also working with Pinterest too. This partnership lets Pinterest use Amazon to manage their ad space.

How this deal affects brands

This partnership shows social commerce is becoming a big deal. It's changing how we shop online, mixing social media with e-commerce. Amazon's teaming up with TikTok is clearly for the purpose to ride the wave of viral trends. Amazon will cash in on viral fashion trends by letting TikTok users buy items straight from video ads – simple as.

#2 Sizzler Cheese Toast is back

Back in the 1990’s I was a Marketing Executive for Collins Foods International in Australia, which had the license to operate Sizzler in Australia and New Zealand. If you are old enough you will know the lines of customers that circled the restaurants waiting to get in, what a “Sizzler coma” feels like after over eating, and the TV commercial “Steak, Seafood, Salad…..Sizzler.” This all-you-can-eat smart casual food concept was also incredibly iconic because of the famous cheese toast that every customer received as a complement to their order. Even thinking about it makes my mouth salivate. But as the world got more sophisticated, eating at a trough of food lost its appeal and the rise of more sophisticated food offers rose to popularity.

But nostalgia is the new black and one cafe chain in Australia, [which I cannot say I have set foot in as it is terribly uncool], has formed a partnership to build their cred and drive foot traffic.

As part of rebranding process, The Coffee Club is aiming to refresh its brand identity which frankly is pretty pedestrian at best. The new tagline “Your happy place” aims to enhance customer connection and reposition it to appeal to a younger and family audience. But new store designs and a revamped feel isn’t enough to make a daggy brand appealing. Enter a genius move  The Coffee Club offered a two week promotion selling Sizzler cheese toast.

As part of a popular demand / nostalgia revival this has literally mobilised visitors who traditionally not crossed The Coffee Club lease-line. This has gone literally viral and every man and his dog is now having throwback to the product. It will be interesting to watch if The Coffee Club gas been able to leverage this clever move and retained those new customers into raving advocates.

#3 The Bunnings Rave

Some of you may have seen my post on LinkedIn last week

This is the stuff that marketing dreams are made of, and Bunnings is in the party seat watching a pop culture moment unfurl around them. 

What is it?

The Bunnings rave phenomenon on social media originated from a viral TikTok campaign initiated by Sydney music producer Kaila. He created a catchy remix of Bunnings' advertising jingle, which quickly gained traction, amassing over 400,000 views. His video called for a petition to host a massive rave in a Bunnings store, prompting excitement among fans of electronic music.

As the idea spread, the Australian music duo Peking Duk joined in, remixing the jingle and showcasing their dance moves in Bunnings locations. They announced their eagerness to perform at the event, which they dubbed the "Bunnings Warehouse Party," and encouraged fans to vote on the location for the rave.

Bunnings Warehouse has embraced the idea, confirming their support and stating they would "bring the decks" for the event. They have also engaged with various brands offering services and products for the party, including snacks and drinks from companies like Smith's and Pepsi. Now, the rave is set to take place in late August, with further details to be announced soon.

Why is this important?

This event highlights the power of social media in turning whimsical ideas into reality, showcasing a unique blend of community engagement and corporate collaboration in Australia.

• This brings to life the concept of "Social Currency" - the ability to resonate with consumers on an emotional level and it is driven "by the people"
• It has fostered a sense of connection and shared experiences, that has been socially shared
• It has done this by tapping into the collective cultural memories (perhaps nostalgic) and evoke a feeling towards a beloved brand(Bunnings personally for me it is the iconic sausage sizzle)
• Now people are mobilising, sharing and making it happen

This is an epic exercise and the PR is enormous. Thumbs-up to Bunnings for riding the wave and not being a traditional retailer which might say "this is too hard."

A magic “money can’t buy” moment in the making.

References

• Bunnings is a home improvements big box retailer which has hero status in Australia mainly due to their sausage BBQs and being a great place to shop for all things hardware and home improvements
• A rave for those who don’t know is a dance party with loads of with lots of electronic music and lights and the feeling created is euphoric (yes I am sure it’s just the music)

These concepts have attempted to understand, engage and cater to their distinct characteristics and expectations to deliver relevancy and appeal to this influential generation of shoppers.

They have tapped into not only the zeitgeist but leveraged unique social opportunities to activate a new type of engagement with their retail brand. Amazon is leaning into the opportunities that can be unleashed if they can keep shopping opportunities “within the conversation and activity” of shoppers, rather than adjacent to it.

Sampai jumpa

o   Please comment if you have seen other retailers and brands lean into these trends. I’d love to know.

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