Although digitally native brands aimed to cut out immersive retail experiences and reach consumers more directly, many are learning to balance online growth with physical presence.
This week, we’ll look at the current climate of digitally native brands and the trends that create value for both your organization and customers.
Today’s Rundown
- Understanding the 2023 Consumer: Where customers are drawing the line.
- Personalization overdrive: Generative AI means more targeted marketing for consumers.
- Out Now – Q2 Benchmark Report: Click Here to see how your store compares to the industry average!
Frictionless, Algorithmic, and Immersive Retail
In a recent report by CIO, three technology trends were identified that IT leaders in the retail industry must adopt to create value for both their organizations and their customers.
The first trend, frictionless retail, consists of delivering a seamless initial contact online or in-store, removing any issue related to adding products to a virtual or physical cart, and making checkout and payment processes intuitive and easy to complete.
The next trend identified was Immersive retail. By applying algorithms to better predict fluctuations and demands in the market, retailers are better positioned to solve one of the biggest challenges in retail — inventory management — by stocking the right products depending on the market situation.
Lastly, an immersive retail experience is the icing on the cake for perfecting the customer journey. Immersive shopping meets these needs by building interactive experiences for customers, thereby increasing their chances of making the purchase. Moreover, investing more time with a product increases their familiarity with your brand.
Digitally Native Brands reach a Deadlock
Although digitally native brands aimed to cut out retailers and reach consumers more directly, many are learning to balance online growth with physical presence.
While established brands will make up $134.55 billion in D2C ecommerce sales in 2023, digitally native brands will make up just $34.84 billion, according to Insider Intelligence’s March 2023 forecast.
Online-only growth strategies have faltered as competition for customer acquisition increases.“There are so many costs to a digitally native brand that I think were lost on people. Everybody just focused on customer acquisition and first-party data and didn’t think through all of the other logistical components,” said analyst Suzy Davidkhanian.
Click HERE to read more about the rising cost of customer acquisition.
Retail Snippets
Personalization overdrive: Generative AI means more targeted marketing for consumers.
Overstock: Fender had $100 million worth of retail sales cancelled in 2022.
SF crisis: Nordstrom officially closes its San Francisco store after 35 years.
Random Irrelevance
Interstellar discovery: Meteor fragments discovered from outside our solar system.
Skiplagging: How it works and why airlines can’t stand it.
Printed watch: Apple reportedly testing use of 3D printers to make smartwatches.
