NRF overview: retail trends 2021 in 5 points

Every year at the beginning of the new year, the NRF Retail’s Big Show in New York is eagerly awaited by retailers. Retailers from all over the world to identify the trends of the coming months and years.

For two weeks, we have selected the conferences that have most inspired us, to deliver – every day – a quick and live debrief on Twitter and YouTube.

Here are some of them: The synthesis, prepared by Raphaël Kattan (DG & Associé) and Cyrille Chaudoit (Co-founder), in 5 key points preceded by some elements of context.

A NRF 2021 in the image of retail : weakened by the crisis

In its distanced version, the scale of the event was halved in 2021: 300 exhibitors, 130 conferences, and no figures regarding the number of participants… Another obvious obstacle: the absence of retail tours to judge in situ trends at the heart of the big apple.

However, as every year, some regulars of the Grand Mass brought the good word from a sector that is certainly bruised but «curiously» OPTIMISTIC.

The recovery is for... tomorrow

Indeed, Optimism was the order of the day among most of the bosses retail global.

The sources of optimism that come up most frequently in speeches:

1. The change of presidency in the USA, herald of the end of protectionism
2. The recovery package aimed at supporting consumption and helping the most disadvantaged
3. Vaccines against coronavirus
4. The economic recovery that is «announced» in the USA as early as the second half of 2021…

Finally, the Americans are relying more on a positive balance between job creation and job destruction in the retail in the coming years, especially thanks to new professions: deliveries, store pickers, etc.

So, Coué method, marketing bluff or genuine trust – it’s hard to decide. But one thing is certain: the world’s major brands have put their forces together to face a VUCA (Volatile, Uncertain, Complex and Ambiguous) future.

Here are, in 5 key points, the major trends in the retail in 2021!

1. PIVOT: « fish where the fish are »

A return to normal with some nuances, however. The offer, the customer experience, the working methods… everything has to change!

From there, a recurring theme at the NRF that is less talked about in France: the loyalty shock !

The crisis has already prompted many consumers to change their purchasing habits: discovering new brands in click & collect or offering free delivery; interruptions in the supply chain which have encouraged consumers to try new brands; etc.

75% of US consumers report having tried new brands and products during the crisis. This bodes well for exciting battles ahead. Engage these new customers for certain brands and for recover the lost customers for others!

2. DELIVERY: « if you don't come to Lagardère...»

Thus, delivery (and therefore logistics) becomes the key to any strategy. retail.

What was the starting point for Amazon and the turning point for the sector is now becoming the main source of suffering for the brands that will not be able to compete on delivery times or the associated services.

Moreover, the investment priorities planned by the actors of the retail technology and the Retailers They themselves are eloquent:

• the inventory technologies faster and more precise since the stores are also becoming fulfillment centers ;
• The Technologies of supply chain which bring manufacturing and the customer closer in terms of tiling;
• The tools related to real-time data in the store for better decision-making;
• The Technologies to simplify the life of the seller so that he spends more time with the client;
• The digital and collaborative equipment of the store so that we can communicate with him and train the teams remotely.

3. TECH IS BACK: again

Although the NRF is not the CES, it closely follows the latter’s calendar every year and regularly highlights technological innovations that are beneficial to the industry. retail. In 2020, the tech mania had calmed down a bit, with industry professionals returning somewhat from the « hype » maintained around the virtual, the contactless…

And for good reason. As Raphaël analyses in our Video debrief #3, the many POCs (Proof of Concept) were right about the patience and budgets of many companies because of too often disappointing results and a frenzy around the tool, where it is not needed. mindset did not follow.

This work of transformation of mindset and working methods has been undertaken for a few years now by the largest companies Retailers. It is a work that is never completely finished, but the crisis has accelerated the transition to a more agile, more growth mindset.

Thus, today and in many cases, it is no longer a lack of innovation culture that hinders the transformation of companies, but rather the lack of a clear strategy. delay in investing in the right tools.

Euromonitor International presented the results of its study measuring the expectations of connected consumers worldwide. A few insights Deserves our attention:

• Consumers expect more opportunities and innovation regarding the Contactless payment ;
• They are demanding progress on the tracking of orders and deliveries of their online purchases;
• They express Little expectation for Augmented Reality (AR) and Virtual Reality (VR) ;
• Nearly 50% say they are open to delivery by drones or robots (77% in China!) ;
• Last but not least… 20% are ready to share their DNA in exchange for personalized recommendations! 

4. CSR: words and actions?

Even though concrete actions are gradually being implemented (such as the purchase and resale of used furniture, etc.), at no point do these brands, showing their commitment with their hands on their hearts, express it concretely. the impact of their (new) beliefs on their economic equation.

We therefore cannot currently rely on commitments alone (70% of circular economy by 2030, a reduction of 50% in greenhouse gas emissions by 2050). test & learn Since 2018, a first concept store of kitchens has opened in leasing for IKEA UK, etc.) and to success stories of pioneering brands in this field such as Patagonia, to «validate» the model.

A «pivot» would certainly be difficult to deploy for companies as massive as IKEA, but it would probably also be easier to decide on and operate for them than for smaller, more local stores.

As proof, the machine Looop that H&M has been testing in its Stockholm store for a few weeks to recycle its customers' clothes, including Abigail Kammerzell, Sustainability Manager of H&M US He spoke to us with eyes full of stars!

The process, which takes several hours, is carried out in 4 stages without water or chemicals:

1. The garment is washed and then shredded into fibers.
2. The fibers are then filtered and carded to obtain a thread.
3. New natural fibers are added to the thread to strengthen it
4. The knitting of the new item is the final step in the creation process

A certain technological advance, but one that is unlikely to be deployed across the H&M network and even less likely to be adopted by smaller brands. This limits its potential. de facto The scope and implications of this issue raise the question of its real impact in the face of the 10,000 to 20,000 tons of clothing that go up in smoke every year in France alone (source: Ministry of Ecological Transition)… colossal figures that, if need be, illustrate the environmental devastation associated with the sector.

Rajesh explains to us that All the data collected by Starbucks for its service business model It will also now be available to the «local community and businesses» to help better understand the flows, the type of population and the customer segmentation in a given catchment area.

Of course, the use cases are still quite vague, but the initiative deserves to be reported and followed up. What we will do for you!

5. COMPETENCES AND WORKING MODES: the core of the «war»

The latest «weapon» – and not the least of them – at the disposal of the global giants of retail : the human being!

More interactions for the customer service

As we have seen throughout this review, the stores have already adapted considerably in recent years and have accelerated the movement by instinct of survival in these last months of the pandemic. The point of inflection of all this is, of course, The rapid evolution of customer habits and expectations.

Americans, being logical, call this tendency the « NOW customer »This customer!" IWe have been describing this for a few years at talenco (the «I» in our name). BIOPAU client).

The stores have a lot to lose if they don’t take care of this customer!

This customer does their shopping in the evening, late at night, on their couch, and needs an answer to a question quickly before they complete their purchase. But at that time of day, who is still available to chat live with them?…

This customer wants a response to their email within 15 minutes. This customer, who never appears in satisfaction studies, in the famous NPS (Net Promoter Score), because he left us, unable to immediately provide him with a means of online interaction.

In the USA, it is estimated that $75 billion has been lost due to the failure to interact with these customers quickly enough. And 51% of customers disappointed by this lack of quick interactions state that they will never again use the brand or store in question.

The real challenge is to consider all of its services. no longer as costs, but as investments.

All these new interactions strongly impact the need for new skills among salespeople and advisors.

New skills to transform the organization

It is clear that, in the face of the pandemic, the brands have managed to be ultra agile in introducing new services in just a few days. The challenge in the coming months will therefore be to solidify these new foundations to be even more robust in the event of future crises.

HR will play a key role to perpetuate all these operating methods – which have proven their effectiveness – and the good management culture that goes with it. It’s about training teams at the same speed (see our Video debrief #6).

This involves the following steps: distance training in virtual classrooms and tools of e-learning for the sellers. This questions the seller’s equipment (tablets or mobile devices are no longer negotiable), but above all the ability of the training teams to deploy content. overnight.

In this regard, let us not fall into the trap of techno-everything! In terms of well-being at work, the retail Obviously, the crisis has had a strong impact on them; employees in sales are still experiencing anxiety about the risk of contamination on one side, and the fear of losing their jobs on the other. As for the teams at the headquarters, they have been under enormous pressure since the first lockdown.

This is therefore to help these managers know how to listen, maintain the team’s cohesion and unity, maintain energy over time, and know how to refocus on the right priorities for action. That is at least how this topic is treated in France, and that’s a good thing (see, in this regard, our article on the subject). distance training in agile management).

The deployment of the relevant corporate strategy

It will also be necessary to review the way in which corporate strategies are managed. The stakes are high: move more quickly from vision to execution.

Pilotage by the OKR method (Objectives & Key Results) whose growing enthusiasm in Europe, and particularly in France, can provide this answer, as the method is powerful in terms of alignment, empowerment, autonomy, and team management.

And as has been the case for some years now at talenco, we will continue in 2021 to accelerate the transformation of the companies that have already chosen us for their needs. OKR strategy !