There’s a lot of uncertainty in the Australian retail landscape as industry data shows Australian retail sales struggled for much of 2019.
As such, it’s more important than ever for retailers to take proactive steps and ensure that they’re well-equipped for the coming months and years, according to retail software provider Vend.
By looking at the latest research and trends and speaking to Australia’s most innovative retailers Vend reveals the top retail trends to look out for in 2020, to give independent stores a better idea of what to prepare for.
1 Community building and participation will be more important than ever―retailers across Australia are finding that creating a sense of community can help brands set themselves apart and build stronger relationships with their customers, which, in turn, drives sales and loyalty.
2 Expect more retailers to be part of the circular economy, in an effort to minimise waste and promote sustainability―in 2020, we’ll see more retailers continue to join the circular economy, a system aimed at eliminating waste and the continual use of resources through reusing and recycling.
Australia’s first ever eco-only store is Biome, based in Queensland. The company has helped Australian’s save over 10 million single-use plastic items from waste, launched Australia’s first zero-waste beauty bar and were the first retailer to distribute reusable coffee cups in Australia.
3 Store experiences reign supreme―Biome, meanwhile, and its founder Tracey Bailey identified that evolutions in the retail industry demanded different strategies from traditional brick and mortar stores. So in 2016, the eco store started hosting workshops and has since launched the Biome Collective; a dedicated workshop space incorporated into their store design.
“Offering a sustainable learning experience enhances not only our customers’ in-store experience, but it is also a way to share our values and vision with our community and move towards a sustainable and healthy future,” says Bailey.
“The workshops help us engage both new and existing customers, and help us bring new customers into our stores as most people who attend a workshop usually come with a friend, partner or family member. The positive introduction to our stores is invaluable for business and brand growth.”
4 Payment flexibility will continue to be paramount―flexibility is the name of the game when it comes to payments. While cash and credit cards won’t go away anytime soon, consumers―particularly millennials and Gen Z―will continue to look for more convenient and more flexible ways to pay for what they purchase.
‘Buy now pay later’ is a big hit among Australian consumers. According to the Roy Morgan Digital Payment Solutions Currency Report of January 2019, 1.49 million Australian used ‘buy now pay later’, in the 12 months leading up to 2019. The payment method has the most penetration among millennials and Gen Z. According to the report, millennials accounted for 40.6 per cent of ‘buy now pay later’ users while Gen Z accounted for 35.1 per cent.
5 Backoffice technology will be a bigger priority over fancy, customer-facing tech―while ‘fancy’ customer-facing technology like virtual reality and touch screens are having an increasingly large presence in modern-day retail, 2020 will also show that retailers are prioritising their backend tools for inventory management, supply chain, and customer data.
Retail tech that enables the ‘behind the scenes’ action like ensuring stores have the right products at the right time is critical to every merchant’s success.
6 Social media and retail will be even more intertwined―social media has always played a big part in retail marketing, but expect that to increase even more in the coming months, especially in the form of social shopping. And as platforms like Instagram continue to develop their social shopping capabilities, we can expect this trend to accelerate in 2020.
Many retailers have already jumped on the trend. TheSuperCool, a South Melbourne-based gift emporium, for instance, regularly publishes shoppable posts on Instagram.
Whenever they post an image that features products that TheSuperCool sell, users can simply tap on the product tags to view and purchase them without having to leave Instagram.
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