CONVIENCE CULTURE: THE FUTURE OF RETAIL
The past couple of years ushered in a seismic shift among shoppers. When people no longer felt safe shopping in traditional formats or were forced to try something new due to scarcity and lifestyle changes, direct-to-consumer (DTC) online brands and retailers as well as smaller consumer packaged goods brands saw a huge shift too. Two out of every five Americans1 have made a purchase directly from a brand or manufacturer, bypassing marketplaces like Amazon and Walmart.
By 2022, the number of DTC ecommerce customers is predicted to hit an all-time high of 103 million1, which goes to show these new shopping routines have stuck and now small to midsize brands will continue to grow and dictate consumer desires.
What started as a way to stay safe amid a pandemic redefined the “how” and “where” of consumer shopping behavior. Direct-to-consumer, food service alternatives, subscription services, marketplaces, and resale are all now growing in popularity to drive new revenue streams. Overall, a culture of convenience is dictating retail behaviors. From personal taste and lifestyle to budget and schedule, offerings must be convenient to all aspects of a consumer’s life.
THINK NICHE
Consider introducing niche brand extensions into your lineup to open the door to a new community of consumers.
CONSIDER THE E-COMMERCE EQUATION
Make packaging more personal and inclusive to new needs and habits. Packaging has stepped up to deliver immersive experiences that bridge the digital-physical divide by going back to iconic brand styles, adding a mixture of education and entertainment or bringing in classic brand nostalgia.
SHIFT PERCEPTIONS OF VALUE
Consider reappraising what you think your brand is worth and the usefulness of your offerings. For example, Project Gravitas is a DTC fashion brand that uses hang tag inserts and stickers to recreate a personal stylist experience at home.
DELIVER AN EXPERIENCE
Interactive packaging strategies that deliver an interesting unboxing experience can elevate your brand. For example, the razor brand Harry’s sells both directly to consumers and within retailers like Target and Walgreens. The brand has used the outer layer of packaging for limited-edition runs without having to touch their product’s main packaging.
At RDG, we will help connect consumer insights and be at the forefront of the consumer mindset evolution. Armed with this knowledge and a top-of-the-line team, we will work to elevate your brand above and beyond the competition by helping you pivot your brand toward the right audience, every time.
1shopify.com, DTC-First: Why More Brands are Using the Direct-to-Consumer Model 04.2021
