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Take a sneak peek at the approaching drivers of retail disruption

Take a sneak peek at Future Retail Disruption 2024 - an exclusive Flywheel Retail Insights report - highlighting the approaching changes to the world we live in and the strategies that retailers and brands should embrace to win in it.

Written by
Emma Irwin
April 3, 2024
8
mins
Retail
Social
Omnichannel
Take a sneak peek at the approaching drivers of retail disruption

Table of contents

The Flywheel Retail Insights team recently published Future Retail Disruption 2024 - a report highlighting the approaching changes to the world we live in and the strategies that retailers and brands should embrace to win in it.

In this blog, we’re taking a sneak peek at 3 of the 9 critical shifts for shoppers, retailers and brands identified in the report which also lays out assumptions to support a future scenario and additionally provides recommendations on preparing. 

More in-depth analysis for Retail Insights subscribers

If you're a Retail Insights subscriber, you can access the full 2024 Future Disruption report here or—if you're more of a video person—you can watch the full recording of our 9th April 2024 virtual event, where David Gordon, Rachel Citren and Rachel Gwyther from the Retail Insights team take an in-depth look at the report and pick out some key highlights.

WATCH THE RECORDING

Shoppers: An AI-powered path to purchase

Our assumptions:

  • Generative AI will transform the online search experience, as retailers leverage this emerging technology for more relevant, personalized and refined search experiences. 
  • Exposure to AI-powered search tools, including personal assistants and chatbots, will evolve consumer search behaviors from product-based search terms to more complex natural language queries.
  • Frictionless experiences on both the digital shelf and in stores will be increasingly commonplace as AI solutions evolve.

What it takes to win:

  • Brands will need to refine their digital shelf strategy as generative AI gains greater scale and sophistication, for example sponsoring occasions or product recommendations as opposed to keywords. 
  • Effective product set-up will become important to ensure relevance in AI-powered search results.
  • AI-powered technology can drive productivity gains across the value chain, supporting personalized products tailored to preferences, and generative AI marketing campaigns.

Retailers: Retail media scales the revenue diversification model

Our assumptions:

  • As costs rise, retailers will lean further on diversified revenue streams, boosting the economic model with higher-margin incomes from a broad ecosystem including retail media, marketplaces and retail-related subscription services. 
  • Retail media offers a scalable opportunity, as retailers invest in upper-funnel media and data clean rooms enable data to be shared securely - facilitating advanced targeting online and in-store, as well as through emerging channels like connected TV. 
  • Retailers will leverage their unique first-party data for personalization and offer sophisticated tools to brands for activations and measuring advertising effectiveness.

What it takes to win:

  • Retail ecosystems, with an increasing array of product and service propositions, create multiple touchpoint opportunities – media, entertainment, and marketplaces - for brands to connect with consumers.
  • Brands will seek their own ecosystem models, connecting with and serving consumers across many touchpoints. 
  • With a focus on data-driven technologies, new segmentation and targeting opportunities are emerging for brands through data clean rooms, full-funnel media activations and connected TV services.

Brands: The requirement for digital shelf excellence across channels

Our assumptions:

  • Third-party (3P) ecommerce continues to outstrip first-party ecommerce, with omnichannel retailers rapidly building out their 3P platforms and assortments. 
  • Social commerce, eB2B and on-demand commerce are also expected to scale quickly, becoming significant digital channels and important components of any brand’s ecommerce and omnichannel portfolio. 
  • Brands must refine their digital shelf strategies to meet consumers online in each of these environments, balancing profitability across channels while driving conversion.

What it takes to win:

  • While establishing a presence across all ecommerce subchannels can be relevant, investment decisions must focus on global marketplaces and the growing affluence found within developing markets as spend shifts online. 
  • As well as social commerce, recognize eB2B as a future growth channel, building investment cases internally to capitalize on the opportunity while identifying relevant platforms and operators. 
  • New online-first brands are growing their presence to compete with established brands in emerging markets, seeking to appeal to a new generation of young shoppers.
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Emma Irwin
Emma Irwin
Senior Brand Marketing Specialist, Flywheel
Emma Irwin
Senior Brand Marketing Specialist, Flywheel
Emma Irwin is a Brand Marketing Manager and host of the Commerce Collective podcast. She began her Flywheel career on the client services team and has since transitioned into a marketing role responsible for producing informative resources for Flywheel's ecosystem.
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