THE FUTURE OF RETAIL: A CONNECTED CONSUMER EXPERIENCE

The future of retail will be defined by a connected marketplace, where customers can seamlessly transition between physical and digital experiences.

Emerging technologies such as AR, VR, and AI will play a critical role in creating this connected experience by providing personalized and immersive shopping experiences that cater to the individual needs and preferences of each customer. These technologies can be used to create personalized and immersive experiences that engage customers and differentiate brands from competitors. The retail industry has undergone a rapid transformation over the past decade with the adoption of these new technologies. Retailers now have the potential to enhance the customer experience by providing personalized and immersive shopping journeys. This whitepaper aims to explore the role of AR, VR and AI in the future of retail and how they will shape the connected experience.

AR in Retail —

AR refers to the overlay of digital content onto the physical world, typically through the use of a smartphone or tablet. AR can be used in the retail industry to provide customers with an immersive and interactive shopping experience. Consumers can use AR to try on clothing virtually, visualize furniture in their home, or see how a shade of lipstick will look once applied. For example, IKEA’s Place app uses AR to allow customers to preview furniture in their homes before making a purchase. This reduces the likelihood of returns and improves the overall shopping experience.

AR can also be used to enhance the in-store experience. Retailers can use AR to provide customers with information about products, such as ingredients or reviews, by scanning a product with their smartphone. AR can also be used to create interactive displays or games that engage customers and encourage them to spend more time in-store. This mobile-enhanced experience is quickly becoming an expectation for the digital-first consumer.

VR in Retail —

VR technology creates a fully immersive digital environment that simulates the physical world. In retail, VR can be used to create virtual stores that customers can explore and interact with. This allows customers to experience products in a more immersive and engaging way, which can lead to increased sales and customer loyalty.

VR can also be used to create virtual showrooms where customers can customize and visualize products before making a purchase. This not only improves the shopping experience but also reduces the need for physical inventory. VR can also be used to train employees or simulate scenarios, such as a busy store during a holiday shopping season. This can help retailers improve operational efficiency and reduce costs.

AI in Retail —

AI refers to the ability of machines to perform tasks that typically require human intelligence, such as learning, reasoning, and problemsolving. AI can be used in the retail industry to personalize the shopping journey for each customer. For example, retailers can use AI to analyze customer data, such as purchase history and browsing behavior, to make personalized product recommendations or offer targeted promotions.

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AI can also be used to improve operational efficiency by automating tasks such as inventory management, supply chain optimization, and customer service. This can help retailers reduce costs and improve the overall customer experience. While the mobile, social-first world presents significant opportunities for retailers, there are also several challenges that must be addressed. One of the biggest challenges is the need to create a seamless and consistent experience across all platforms and touchpoints, including in-store, online, and mobile. Brands and retailers must reset the waythey strategize, plan, and launch product and storytelling to meet the new, connected consumer expectation.

CHRISTOPHER MASSARO VP, CREATIVE & DESIGN SGK

The biggest challenge is the cost and complexity of implementing these technologies. Retailers must adapt to this new reality by ripping up the old playbook and thinking about investing differently in their go to market strategy:

Actions to take:

1. Define how these emerging technologies can best support the strategies of your brand or retail experience.

2. Find opportunities to redirect budget to invest in a connected experience.

3. Drive collaborative, crossfunctional, planning. A connected team will deliver a more seamless experience.

4. Think big, work small, and go fast! Find the right manageable opportunities to iterate, learn and prove concepts that can scale and evolve at the speed of technology and culture.

Christopher Massaro

Chris is an industry leading influence in retail and brand design, with a career dedicated to delivering world class consumer experiences. Chris has led the creative in support of the largest and most influential brands in footwear, apparel, consumer electronics, and food & beverage. In 2020, Chris was named to Design: Retail’s 40 under 40, recognizing his achievements throughout his 20 years in the industry. Prior to joining SGK, Chris was a client partner in a Global Creative Director role at Under Armour. As VP, Creative & Design at SGK, Chris currently leads the creative teams for SGK Brand Experience.

Private Label

How Can Groceries Accelerate Their Private Label Strategy?

The older age group and young generation are driving PL growth, those who have lived through rationing and food shortages, alongside those who need to make their money go further.

How can grocers accelerate their strategy to drive growth in sales?

• Ensure PL has a pivotal role within the corporate and category strategies.

• Ensure that PL products are at least as profitable (%GP) as the national brands.

• Establish clear brand values via a playbook delivering key stakeholder guidance on what the brand stands for.

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• Lead innovation developing great tasting products that are at least comparable to the brands, in preference to developing to a price point.

• Defined product architecture covering the essential entry price points while also targeting the high-value mid-tier or premium products. This helps win the perception of value while giving consumers the choice to select more expensive products.

• Win on nutrition, as consumers increasingly demand food with added functionality.

As saving becomes important, this will drive growth into high-value items such as meat, coffee, and beauty, where spending more within grocery enables consumers to save versus dining out, visiting the coffee store or the hair salon.

Mark Field

Mark Field has extensive technical and commercial experience in the international food manufacturing and retail industries, having worked at a senior level across the European red meat and poultry industry for some of the world’s most reputable companies. Over the decades, Mark has formed strategic relationships with iconic brands McDonalds and KFC, alongside leading UK retailers such as Tesco, Marks & Spencer, Sainsbury’s and Walmart. In December 2011, Mark moved to Melbourne, where he headed up Australia’s most significant food brand growing their worth from $7billion to over $9billion, delivering around 1,200 new products each year. You probably have a number of the well-loved products in your own home.

Mark is the approachable expert who heads up Prof. He prides himself on strong leadership skills, strategic vision, and the ability to align goals at pace with critical stakeholders. Mark’s passion for food and consumer-led innovation is evident. However, it is his proven track record for building strong teams, improving cultural change, and delivering world-class products that set Prof. apart