Advertising is experiencing a sea change, with the emphasis being placed on social media more than ever before. Consumers are less influenced by traditional forms of advertising and instead are discovering new concepts and brands through social media. Brands are now able to generate traffic—and sales—through a variety of social media strategies. Whether authoring their own social media posts, going through a celebrity or brand ambassador or by providing opportunities for direct peer-to-peer interaction, it’s becoming an increasingly important medium for retailers.
Authenticity Doesn’t Exclude Chains from Competing
With an increasing consumer demand for authenticity, many wonder if large chains can still compete in the retail sphere. But authentic doesn’t have to mean small or local—it just means big brands have to know what they’re good at and market to consumers accordingly. Consumers may be searching more for authenticity, but genuine comes in all shapes in sizes.
Goods Versus Experiences
CBRE’s Live, Work, Play Survey noted that millennials spend nearly 50 percent of their disposable income on experiences. But that doesn’t mean they’ve stopped buying things. Enter: goods with experiences, or experiences with goods. Retailers are finding new ways to make shopping an experience in itself. And new retailers are coming to the market with a focus on activity and experience, whether it’s social, recreational or a blend of the two.
Where and how consumers live, work and shop will continue to change tremendously as technologies evolve and habits adapt. Success in the retail industry will depend heavily on retailers’ and landlords’ understanding of these changes and ability to update their offer to meet new needs. In this ever-evolving context, agility and adaptability will be paramount, and those players able to keep pace with the consumer are best-positioned to thrive.
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