4 Hot Keywords in the Retail Business
Rising prices due to inflation have changed the U.S. economy in many ways. Consumers are forced to think more before opening their wallets and are trying to reduce spending on necessities. As a result, consumers who trusted time-tested brands began to look for other options that had the same ingredients at a fraction of the cost. As a result, consumers are doing more research to shop, as opposed to simply buying products from trusted brands, and those who have already tried a product are continuing their research to find out where to buy the same product at a lower price. What does a beauty supply store need to do to keep up with this trend?
1. “Phygital” stores are on the rise.
A phygital store bridges the physical space and the digital space, and it is a store that incorporates the digital convenience of a brick-and-mortar retail space. There was a time during the pandemic when online businesses were thriving as people adapted to contactless transactions. But as the pandemic began to wind down, people began to crowd brick-and-mortar stores. You can’t force customers who are already accustomed to buying online to buy in-store, but you can’t miss out on the opportunity to sell to offline customers who came to touch and feel things before they buy online. This is where the phygital store comes in. You can kill two birds with one stone: online and offline. A good example is an online store that allows customers to shop for clothes and see which brick-and-mortar stores have the item in stock. This way, customers can try it on and buy it in person if they’re hesitant to make a purchase online. Another great example of a phygital store is Zara which allows shoppers to scan QR codes on clothes while shopping in-store to make purchases online.
Dubai’s retail giant Majid Al-Futtaim turns “phygital”
Youtube @CNBC International TV
A report on a brick-and-mortar store where the phygital store concept is in action.
2. Post-millennial, Alphas are coming.
Generation Alpha refers to people born after 2010 and is the next generation after Generation Z. In 2024, Gen Alpha will be 14 years old, and by next year, there will be more than 2.2 billion of them worldwide. That’s more than 20% of the world’s population in 2025. Alpha consumers have very different spending behaviors than Gen Z. They are particularly influenced by social media and make purchase decisions based on online reviews and video content. This is a generation that values honesty, dislikes disingenuous and fake things, and is more visual than spoken or written. They love fun content, especially with humor, so any content created to promote a product must have an element of “fun” in it. Gen Alpha values honesty, social responsibility, and transparency, so delivering an authentic message is a key component of marketing.
Generation Alpha: The Next Consumer
YouTube @rethinkretai
A detailed explanation of the spending behavior of Generation Alpha, which is completely different from previous generations.
3. Up your store value! Circular Economy
The circular economy is based on “reduce, reuse, and recycle,” a green economic principle that promotes sustainability by conserving resources and prioritizing waste reduction. So when you produce a product, you design it with durability and longevity in mind, and you focus on high-quality materials that can be used for a long time. It is also an environmentally friendly economic principle that minimizes pollution by recycling products after use instead of disposing of them. It is reported that 66% of consumers base their purchasing decisions on sustainability, at least partially. Therefore, promoting products that focus on quality over flashy, eye-catching ads, products that use recyclable packaging, and so on will greatly improve the image and reputation of your retail business, consequently increasing the value of your brand.
Circular Economy | Explained in 3 Minutes #06
YouTube @NLB Singapore
A very simple and straightforward explanation of the circular economy
4. Can you sell new and used products together?
Lululemon, a sports apparel company, has added a section to its online store called Like New, which sells used products. This promoted the brand’s sustainability efforts, and Lululemon pledged to use 100% of the profits from the sale of Like New products to support the company’s sustainability efforts. Between 2020 and 2021, there was a 275% increase in brands reselling their own pre-owned products, and research shows that this resulted in an increase of customer engagement by 65% and new customer acquisition by 50%.
Ads on Lululemon’s website. You can buy both new and used products from the official website.
