OUTLOOK
Understanding new instore behaviours is critical to longterm success for traditional bricks and mortar stores . Fundamental to this is elevating the instore experience . Australians are keen to shop local and crave a return to sensorial experiences , boding well for physical retail .
Localism is still loved as we make shopping social again Localism took centre stage through bushfires , floods , and the pandemic . And Australians have not looked back . Over nine in 10 ( 93 per cent ) are more likely to buy Australian-made than from any other country . 51 We continue to embrace grassroots initiatives like Buy from the Bush – and so , too , does big business , as provenance continues to fill our shopping baskets .
As we lamented lack of physical interaction again , shopping went social – and it ’ s here to stay . Social media platforms are taking retailer profiles further , with built-in shopping features ( think Instagram Shops ). Commanding extraordinary global growth , social e-commerce is estimated to increase 31.4 per cent by 2027 . 52 There is no mistaking the influence of the social set in the greater omnichannel sphere .
Omnichannel investment is soaring but consistency matters What is not fully realised is how extensive the pandemic impact was on retailers . More businesses than ever are investing in improving and augmenting omnichannel efforts , because shopping experience expectations are changing – we expect retailers to be present everywhere we are . No matter the device , channel , platform , locale , or time , Australians expect brands to always provide consistent information and experiences to seamlessly move between different channels yet enjoy a unified experience .
“ Actionable data ” was “ a key initiative ”, writes Coles CMO Lisa Ronson in WARC , saying , “ our physical stores are often just around the corner for our customers , and we want our digital channels and tools to be just as accessible . The two need to complement each other in an effortless and seamless manner and where possible , add more value to the experience than just one channel , either physical or digital , can do on its own .” 53 Omnichannel will thrive if the logistics and supply chain continue to evolve rapidly to support it .
Digital payments are taking off From e-wallets to wearables , and tap-and-go to buy-now-pay-later , the way Australians transact is fast-changing . Cash is no longer king , as traditional banks innovate with digital payment adoption . Woolworths and Coles were first to raise their contactless payment limit as the pandemic took hold , 54 while an increasing number of proprietors are declining or discouraging cash . To capture share of wallet , make ample space for digital purses . Payment providers and merchants can also simplify things further . Consider optimising your buying journey with multiple payment options – including an easyto-use digital one – to keep up with “ anytime , anywhere ” shopping .
Bricks and mortar remains key to omnichannel retail success Retailers who held onto their physical spaces might just be on the podium when it comes to 2022 omnichannel trends . While the purpose of physical retail spaces may have shifted , they remain important to the shopper journey – and in many cases , the endpoint of buy-online-pick-up-instore and buy-online-pick-up-at-curb sales strategies . Just because shoppers are buying online doesn ’ t mean they don ’ t also like to shop instore – for many , it was lockdown leisure . The coming year will drive sensorial activation in physical outlets . Australians are increasingly nuanced in shopping habits — and that ’ s the whole point of providing omnichannel retail . •
Social e-commerce is estimated to increase 31.4 % by 2027 47
The mecca of omnichannel mastery
New shopping habits and behaviours will remain , meaning retailers must invest in customer experience . Beauty retailer Mecca has done just that . With Australia ’ s beauty market estimated at $ 11 billion and growing – largely thanks to online engagement and what the Australian Financial Review describes as efforts to make “ the segment more accessible and fun ” 56 – Mecca made the most of online when the pandemic hit . The shift to accelerating digital became critical as Covid-19 changed everything , and Mecca ’ s longer-term omnichannel focus was the game-changer .
Mecca chief digital officer Sam Bain says their focus was “… developing a stronger omnichannel offering … to bridge the gap between digital and physical experiences ; and doubling down on personalisation and relevance across all touchpoints for the customer , to make shopping with us on any channel as seamless as possible ”. 57 Covid-19 hit just as Mecca was ramping up investment in its physical store . 58 Personalisation proved to be a winner as the brand tapped into digital innovation . Mecca ’ s loyalty program doubles as an interactive product feedback and advice panel , while their interactive customer Facebook group talks beauty . Continuing to deliver and innovate “ extraordinary experiences ” 59 is how they plan to keep “ blurring the digital and physical divide ”. 60
“ One thing we always have in our streams is brilliant basics , which is about making sure what you are doing is offering a frictionless experience that ’ s easy . Just making small changes can make a huge impact on your customer .”
Sam Bain , Chief Digital Officer , Mecca 54
Reimagining retail for the roaring twenties