“I'm always thrilled to attend events that promise a glimpse into the future of consumer behavior,” said Beth Ann Kaminkow, moderator of our powerhouse client panel discussion with marketing leaders from New Balance, Colgate-Palmolive, Esprit and Shopify that explored how trends from our Future Shopper report are affecting their business and their brands.
How are they preparing for the new reality in retail?
“Planning is the most important thing,” said Keith Lehman, Director, Global Digital Commerce Marketing, Colgate-Palmolive. “We’re all embracing omnichannel, but also trying to figure out how to prioritize fragmentation, which is hard because there are so many channels to sell through. So now it’s play with the robot, test it, because it’s not about being in all channels, but being in the right ones for our audience.”
Keith’s observation ties into a point made by Beth Ann in her intro about utilizing a new model of “optichannel” marketing, which focuses budget and connection in channels where customers actually are versus throwing the net wide to achieve a better return on investment.
“At Shopify, we’re seeing the same thing regarding connectivity between channels,” said Brandon Gracey, Director of Enterprise Sales, B2B and Diversified Industries, Shopify. “For brands it’s about figuring out which channels make the most sense for your brand and your consumers and then making sure they don't live in isolation."
“So, if you’re doing retail, what are you doing in aisle? If you’re doing DTC, how are you thinking about driving consumers into retail and making sure there’s a flywheel there instead of they come in, they buy, and that’s it.”
A recurring theme throughout the client panel discussion was the blurring of lines between physical and digital retail. While e-commerce continues to grow, there's a renewed appreciation for the tangible, experiential aspects of brick-and-mortar shopping.
Chuck Mauro, Global Marketing Director for New Balance, highlighted this shift, noting the brand's significant investment in physical retail to drive growth. “We’ve opened almost 100 stores this year and we'll be up over 500 by January, and we’re redesigning our flagships globally,” said Chuck, who emphasized the importance of creating immersive brand experiences that go beyond the transaction.
“New Balance is lucky to be a brand that’s organically adopted, and has been for a long time. As long as marketing is a reflection of our values, we can continue to grow in the way that we want to grow."
This sentiment was echoed by Scott Lutz, who leads global e-commerce technology at Esprit. Scott emphasized the need for a cohesive brand experience that seamlessly blends online and offline touchpoints. Esprit's experimentation with pop-up shops in key markets highlights their commitment to testing and learning as they reimagine the brand's physical presence.
How is Esprit thinking about customer experience and commerce and weaving them together into a connected brand experience?
“We’re experimenting, like with our pop-ups. Brands and Espirt in particular need a clearly articulated content strategy anchored around brand first and what we stand for that aligns with our brand pillars,” said Scott. “I think what’s missing from some brands today is that they either don't have or they have a very fragmented content strategy.”
An intriguing takeaway from panelists was how play is a key driver of innovation – not only for consumer experiences, but for internal brand teams to get familiar with the plethora of new technology available. In a world saturated with technology and data, brands need to rediscover the power of experimentation and curiosity.
“The future of retail belongs to brands willing to embrace the unknown, test new ideas, and, yes, even play a little,” said Beth Ann.
“The idea of having your avatar in a separate world where you can do basically anything, like trial a product, that opens up a new world,” said Keith. “We must ask ourselves do we as a brand need to have a storefront inside this virtual world with products that people can try out.”
Scott Lux said the need for play and innovation has changed his interview process.
“I'll ask candidates what they're curious about and what they’ve seen out in the marketplace, and take that play idea and ask them what they’ve done about it,” said Scott. “It gives our brand the chance to see what’s out there and get immersed in it.”
Of course, AI is also big on any brand leader’s agenda.
Offering immense potential to personalize experiences and streamline operations, AI raises concerns about ethics, privacy and the human touch.
Our panelists agreed that AI should be viewed as an augmentation tool, not a replacement for human connection. As Brandon aptly put it: "It’s not if you’re going to use AI, but where.”
“AI can augment the human experience with your customers, but it'll probably be a little left of center, at least for now, and can augment all the other things you’re doing.”
How can you protect your brand from the potential risks of AI?
“Sometimes saying no is just as important as saying yes and making sure to get it right,” added Beth Ann.
The future of shopping is about more than just transactions – it's about building lasting relationships with consumers who are more informed, more connected and more demanding than ever before.
Is your brand ready to step into the future?
For more on how our client teams can help you implement key themes and takeaways from the Future Shopper 2024 report into your business, please contact us here.
