INDUSTRY WATCH
TECHNOLOGY IS EVOLVING
AT SUCH A RAPID RATE
THAT BRANDS HAVE
ACCESS TO A BEVY OF
TOOLS GEARED TOWARDS
ENHANCING THE
IN-STORE EXPERIENCE.
D
espite challenging global
economic conditions, retail sales
in South Africa rose 1.3% year-
on-year in July. Even though this is in
line with expectations, it is still a positive
sign that consumers have been willing to
spend amid pressure to tighten budgets.
And yet, anecdotal evidence from many
retailers suggest that certain product
categories are struggling. Traditional
bricks-and-mortar retailers are having to
adapt to a more diverse and engaging
customer experience, satisfying the
digital aspect of our daily lives for both
research and convenience. that’s both informative and engaging
where experience is tantamount.
On one hand the retail sector is showing
promise, however there are significant
challenges in consumers committing
during the ‘last mile’ of their purchase
journey, particularly when it comes to
non-essentials. The market has become
ever more competitive and those with an
edge are standing out to consumers. Granted, First World markets have
the luxury of creating a more consistent
consumer experience across store
environments, whereas in developing
markets like South Africa, there are
challenges such as infrastructure
to overcome.
Fortunately, technology is evolving
at such a rapid rate that brands have
access to a bevy of tools geared towards
enhancing the in-store experience.
Increased data gathering and direct
feedback from consumers is assisting to
reshape the brick and mortar experience
and in-store media along with it.
While traditional media at point-of-sale
is still critically important, especially in
remote areas that do not always have
reliable Internet connectivity for digital
mediums, innovations are being piloted
on an ongoing basis. Today’s consumer
wants to have an integrated store journey
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This is especially the case when it comes
to retailers who have a large footprint
capable of dealing with a diversity of
markets and shop fittings. At a retail
conference held in the US last year, one
of the most significant trends identified
was that of creating more personalised
digital experiences for consumers. This
is already occurring in the e-commerce
space although South Africa has a way to
go before becoming as sophisticated as
retailers in the US and Europe.
Irrespective, if they are to drive growth,
local retailers must start embracing
an omni-channel customer-centric
approach to give customers a consistent,
valuable experience cognisant of their
unique needs.
We are seeing the shift happen from
above-the-line (ATL) spend to in-store
smarter media. Being visible at the
retail store and the point-of-sale where
significant customer footfall occurs
must be a priority. If customers do not
see a brand and get the opportunity to
experience it for themselves, there is a
greater chance that they will opt for a
competitive product which is more visible.
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