Capgemini names retail trends for 2017

London - What can retailers expect this year? Well, according to consulting, technology and outsourcing agency Capgemini the four key trends will be ‘the rebirth of loyalty’, ‘the Internet of Things’, ‘virtual reality’ and ‘biometric recognition’.

Bhavesh Unadkat, management consultant in retail customer engagement design at Capgemini said: “2016 demonstrated a real shift in retailers executing more targeted and relevant content at scale. We also saw digital being used in stores to improve experiences through things like contactless payments and the use of tablets for ordering and engagement. Retailers demonstrated their versatility in finding interesting ways to adopt disruptive technologies such as Augmented Reality and the Internet of Things into their ecosytem.

“No doubt 2017 will be a very exciting year in retail with brands competing for that share of wallet which is more diluted than ever before through the choice the customer has. Retailers are looking for ways to be more meaningful and relevant to their customers, to offer that extra bit more which is not just product and price but great service and experience.”

One the key trends is going to be the ‘rebirth of loyalty’ with Capgemini stating that retailers need to be thinking about how their schemes can be more sustainable and built on a reciprocal value exchange with their customers that provides more reasons to be loyal.

“Loyalty isn’t built in a moment, but instead over time, and it needs to be considered as a more holistic outcome, achieved through supporting, inspiring and engaging the segment of one customer,” added Unadkat.

Next is the ‘the Internet of Things’, with the number of wearable devices purchased during 2016 doubling, Capgemini is predicting that this sector will expand its reach in retail. It states that there are lot of opportunities from customer facing to benefits in the supply chain, for instance, having a more accurately measure supply and demand in a near-real-time way will allow businesses to better ensure things do not run out based on a surge in demand, or that stores are not overstocked.

Virtual reality and biometric recognition key trends for retail this year

The third key trend is to see ‘augmented and virtual reality’ continue to influence retailers’ interactions with consumers. There were a number of retailers and shopping centres who used this technology during the festive break and it is expected that this trend is set to continue for 2017, as the virtual reality eliminates the limitations of space and time, so retailers can dream of whatever experience or design they choose.

Capgemini is predicting that this technology will be “more of common site” and will be used to create virtual showrooms and virtual fitting rooms.

One recent example of this was from Mothercare who used the technology to introduced an innovative twist to its catalogue by allowing those customers with its app to scan the page and watch models showcase the products on their screens.

The final trend is ‘biometric recognition’, which providing opportunities for retailers to really understand and learn more about their customers with the aim of enhancing the shopping experience. While AR and VR employs technology to enhance interaction, biometric recognition allows retailers to instantly collect more details on their customers than a simple online registration form, such as their approximate age, height, gender and preferences. One such use has been to monitor customers’ reactions while trying on products so the brand can adjust the clothes offered online accordingly.

Unadkat, added: “Expect 2017 to offer even more innovation and trialling in this space, as retailers look to stay ahead of the competition through the adoption of technologies that are becoming more and more accessible to brands regardless of their size and budget.”

Image: screenshot from Mothercare AR video